"It must be best if everyone in the world gets rich through crypto, but there are those who don't believe."
The release of a report entitled "2024 Bank of America Private Bank Study of Wealthy Americans" by Bank of America (BoA) two days ago highlights significant trends and examines how the dynamics of generation and transfer of wealth in the future can shape financial strategy.
Reportedly, younger wealthy individuals tend to invest in cryptocurrencies compared to their older counterparts who focus more on traditional investments such as stocks and bonds.
Through observation, three-quarters of young people agree that investing in stocks and bonds alone cannot generate above-average returns, so they are more interested in exploring alternatives such as crypto and private equity.
There is no denying that interest in crypto has declined slightly since 2022, but digital assets continue to be an important part of the portfolio of young investors who may increase their allocation to alternative investments including crypto in the coming years.
BoA also revealed that although the most conservative young investors hold large digital assets, they still manage risk well and even have a very organized investment strategy to generate handsome profits.
This generation's investment preferences reflect a cautious approach influenced by broader market crashes in the past that led them to own less risky assets such as cash, crypto and real estate.
For wealthy 21- to 43-year-olds, portfolio allocations look more or less the same where they collectively accumulate altcoins, cryptos, stocks, bonds and cash, BoA further commented.