Will older investors ever accept crypto?

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Since Bitcoin was created as an alternative currency system in 2009, cryptocurrencies have split the generations. Many older investors remain suspicious, keep their assets in traditional facilities such as stock exchange, real estate and gold. But millennials, which were born around 1980 and 1995, quickly accepted the concept of digital currencies.

This trust has paid off to a large extent. Early Adopters in particular have accumulated huge fortune due to the exploding price of Bitcoin, Ethereum and other cryptocurrencies because they have become more and more a mainstream. According to the latest CNBC millionaire survey, 53 percent of millennial millionaires in the United States have at least half of their assets in cryptocurrencies.

The survey showed that 83 percent of millennial millionaires have crypto. But in contrast, only 4 percent of baby boomers or older millionaires have a cryptocurrency. Mike Novogratz from the cryptofirma Galaxy Digital, however, says that resistance could crumble among older investors. He believes that digital assets could attract up to $ 1 trillion this year because crypto products are becoming widely available for wealthy customers.

Private banks, trading platforms and asset managers are increasingly offering access to cryptoinvestitations. The leading names include Goldman Sachs, Wells Fargo, State Street, Barclays and BBVA Switzerland. But the cryptocurrency industry has a lot to do if it wants to build broad trust. According to the crypto analysis company Ciphertrace, crypto fraud investors cost $ 1.9 billion in 2020. There are also concerns about money laundering and terrorist financing.

In Great Britain, for example, FCA has warned that many cryptocurrency companies do not meet the anti-money laundering standards. So far, around 30 companies have successfully registered with the regulatory authority, which allows them to legally work in the United Kingdom, with a similar number of applications being examined.