It sometimes seems crypto is minting new millionaires by the day, particularly those with the stomach to dabble in the risky world of altcoins. The most famous of these — like doge and shiba inu — have produced some eye-watering returns in 2021.
It’s no surprise then that investors are flocking to the space with dreams of quick riches, and Gen Z investors in particular think crypto will make them millionaires, a recent study by data analytics firm Engine Insights showed.
Nearly two thirds — 59% — of Gen Z respondents to the survey believe they could become wealthy by investing in cryptocurrencies.
“This generation has a greater acceptance and comfort with all things digital, so not surprising that would be more comfortable with crypto,” Kathy Sheehan, SVP at Cassandra, a division of Engine Insights, told Insider. “This generation has a lot of concerns about debt and finances.”
A confluence of factors, from the rising costs of real estate to college education could be to blame, Sheehan told Insider. Inflation reaching 30-year highs has only reinforced the appeal of crypto as the weakening of fiat money dominates headlines.
“They feel that everything financial is harder for them than it was for previous generations,” Sheehan said. “Couple that attitude with more of an appetite for risk, it is not surprising that they are hoping for a quick fix or return.”
Gen Z, a group of about 72 million people in the US born between 1997 and 2012, is the most diverse generation in American history in terms of race, ethnicity, and sexual orientation.
Broadly, this generation is progressive, pro-government, and activist-minded. They have also grown up in a period of watershed cultural moments including #MeToo and the post-George Floyd era, weathering a disruptive global pandemic on top of it all.
The survey, whose findings are based on responses from 1,027 people in November, also found that if offered $2,000 to invest, Gen Z respondents are three times more likely to buy digital assets compared to baby boomers, and twice as likely to consider virtual currency a “legit currency.”
The crypto market has fluctuated wildly this year, but has generally been trending higher. The crypto market capitalization hit $3 trillion recently.
Bitcoin has gained 100% since the start of the year, while ether is up 480%. Meme coins have had it better, with dogecoin rising 4,835% year-to-date and shiba inu skyrocketing 63,490,000%.
Many retail investors poured multiple rounds of government stimulus checks into stocks and crypto, helping fuel the surge in both markets seen during the pandemic.
The article originally published on Business Insider.