Experiencing a global pandemic can contribute to a general sense of economic uncertainty. It can leave people wondering about the financial legacy they’ll leave behind for future generations. As a parent, I worry about my children and strive hard to secure their futures. I understand and empathize with the need to leave a financial cushion upon which our children can build a better world.
I’ve already spoken about cryptocurrency and the pros and cons of using it in business. Now, let’s take a look at its potential to help you achieve generational wealth.
What Is Generational Wealth?
Generational wealth is wealth that is passed down from generation to generation for a long time. It serves as a constant source of revenue for future generations. Generational wealth can be in the form of assets such as real estate, businesses, stocks, bonds, or any other good or service that can sustain your family for generations to come.
Usually, when accumulating generational wealth, it’s common for people to invest in gold or large-scale real estate. Recently, however, we’re witnessing a shift where newer millennial investors would prefer to invest in cryptocurrency than in gold.
Who Is Likely to Invest in Cryptocurrency?
The cryptocurrency market has flourished in recent years, making it a popular and competitive sector to venture into. While digital assets are still relatively new to the investment scene and many investors continue to have misgivings about cryptocurrency, it has attracted plenty of interest from younger investors.
According to the 2022 Investopedia Financial Literacy Survey, when 4,000 Americans were asked about their investment habits, it was found that younger Americans were generally more optimistic about the future of digital currency.
The survey also found that millennials were more likely to invest in cryptocurrency. 64% of millennials already had investments of some kind, of which 38% were cryptocurrency investments. Nearly 60% of millennial investors also hold digital currencies. Of millennials earning at least $75,000 per year, 59% were digital currency holders, compared to the 21% earning under $75,000.
How Can Cryptocurrency Help You Accumulate Generational Wealth?
As a younger generation of investors turns to cryptocurrency to accumulate generational wealth, we should ask what sets crypto apart from conventional investment opportunities.
Cryptocurrency exists on decentralized blockchain networks that eliminate the need for any third-party intervention. No individual or financial institution, such as a bank monitors your transactions.
The most significant difference between accumulating your generational wealth through gold, land, or other goods that can be confiscated versus accumulating it through cryptocurrency, is that while a third party can seize the former, they can’t touch your cryptocurrency. Anybody looking to access your wallet will need its seed phrase to get it to open. Usually, only the owners of a digital wallet, in this case, the investor, will have access to that code.
Investing in cryptocurrency gives the investor complete control over their finances, where they can choose to take any action. These actions are automatically recorded and accessible from anywhere in the world. Crypto’s decentralized mechanism makes it an attractive investment prospect to the younger generation.
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