Millennials sour on crypto

The popularity of cryptocurrencies such as Bitcoin has plummeted in 2022, particularly among their most fervent supporters – millennial investors – according to a recent Bankrate survey. Americans of all ages have seen their comfort level with cryptocurrency sink sharply over the last year, as these digital currencies have plunged in value at a dizzying pace.

Overall, the number of Americans who said they were “very comfortable” or “somewhat comfortable” with cryptocurrencies in 2022 plummeted by more than 39% from 2021. And the numbers are even starker for millennials, where comfort levels dropped almost 42%.

Cryptocurrency has fallen steeply as the Federal Reserve promised to aggressively raise interest rates to combat rising inflation and then followed through on that promise. In addition, some investors worry that further government regulation, including a central bank digital currency, could derail the cryptocurrency market.

“It is a lot easier to be enthusiastic and believe in something when you see the value going up continually,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “But the real test of belief comes when the chips are down, and a lot of investors have realized they now feel differently about investing in cryptocurrency.”

Cryptocurrency is a high-risk game where you could lose most or all of your money, regardless of what age you are. Given the massive declines in cryptos in 2022, it’s little wonder that millennials – indeed, all major age groups – have become less comfortable with it.