People above 45 years drifting towards cryptocurrencies
The increasing interest shown by people above 45 is a sign that many are accepting that the world is going digital and the investment models too
It is no longer only millenials but even seasoned investors, who are above 45 years of age, are now joining the cryptocurrency bandwagon. People above 45 years do not want to be left behind in the race of cashing in on extraordinary returns given by virtual currencies over a short period of time, say experts. Since the beginning of 2021 Dogecoin, Ethereum and Bitcoin have given a return of over 7,200%, 430%, and 71%, respectively.
“We have seen a year-on-year percentage increase of 705% in the number of investors above the age of 45 between 2020 and this year. With the lockdown from last year, those who are in this age group have turned to digital media and social media more. Crypto investing and information on cryptocurrencies have also gone mainstream with the 2020 bull run, especially through the digital media,” said Vikram Rangala, COO of ZebPay.
Rangala added that the pandemic has shown the need for a digital economy and the shift in everything—jobs, entertainment to digital. The increasing interest shown by people above 45 is a sign that many are accepting that the world is going digital and the investment models too.
Apart from an increase in digital reach, the other reason has been huge returns given by cryptocurrencies, especially when traditional investments such as fixed deposits and debt funds are finding it difficult to beat inflation.
“Crypto adoption in India is driven primarily by youngsters who have joined the workforce recently. They seek better returns over what traditional assets (bank deposits, stocks and even gold) give in general. This bullish sentiment has rubbed on to other elders in the household who learn from these youngsters and want to discover this asset class on their own. However, we see a cautious approach among our 45+ base which is growing at a considerable pace,” said Vikram Subburaj- Co-Founder and CEO of Giottus Cryptocurrency Exchange.
Though an increasing number of people are now investing in cryptocurrencies, there is a need to be cautious so that people don’t go overboard with all their investments.
“We believe this asset class will eventually appeal to all ages though we advise caution – do not have more than 20% of your overall investments in crypto before you understand the market, said Subburaj.