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Why we, the Gen Z are betting big on Crypto and Collectibles

Gen Z dealing with crypto and collectibles

Typically, one of the most common ways of investing to create wealth has been through buying shares in regular corporate securities. But today, a large number of young people, especially from our generation, the Gen Z, have decided to change the rules of the game. Instead, they are leaving behind the conservative route and adopting to buying collectibles and crypto portfolios.

What a study says

The study conducted by Bank of America in the past few months reveals how only 14% of the Gen Z and millennials respondents believe that stocks are the best way to build wealth, in contrast to 41% of investors above the age of 44. And what do you know, 72% of informal young people think now you cannot obtain superior returns just from stocks or bonds, while only 28% of formal older investors agree.

We are also walking the talk where we are investing through our belongings, our money. Notably, younger investors hold only about 47% of equities and bonds in their investment portfolios while older investors have considerably, 74%. Yes, I want to know where the rest of our cash has gone? Alternative investments, baby!

Its a big shift!

Yes, a vast majority of us which stands at a staggering 94% are known to have some form of investing on things such as watches, classic cars, wine, sneakers, antique items, and even special edition watches. Baby boomers, on the other hand, have been found to be into collecting only at a 57% rate. Talk about a generational shift!

When it comes to the best investment opportunities, about 31% of younger investors are all in on real estate, and a close 28% are backing crypto and other digital assets. Only 4% of older investors think crypto is a good bet. Age is a huge factor here. Young people are 7.5 times more likely to have crypto in their portfolios and five times more likely to say they understand it well. Maybe it’s because over half of us get our crypto advice from social media, while older folks rely on online research.

We’re navigating a time of massive social, economic, and tech changes, plus the biggest generational wealth transfer ever. Katy Knox, president of Bank of America Private Bank, says we’re all about diversification, long-term goals, and making a lasting impact with our wealth. The survey, which talked to over 1,000 people with at least $3 million in assets, really shows how we’re shaping the future of investing.

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