Why younger investors turn to crypto

A recent survey shows 73 percent of Gen Z and Millennial investors believe it is harder for their generation to build wealth through traditional means, compared with 57 percent of Gen Xers and Baby Boomers.

Eighty percent of younger investors believe that crypto offers their generation more financial opportunities than they would have otherwise. Despite the historic bull run in traditional equities.

From the 2020 lows, the S&P 500 is up roughly 200 percent. Considering the standard year-over-year return is about 10%, that is an exceptional multi-year return.

From the same pandemic lows, Bitcoin is up by nearly 2,000 percent, offering a nearly 10x return relative to equities over the same timeframe.

For younger investors starting with less capital, the appeal lies in the fact that crypto has, and continues to deliver, astronomical returns.

That return asymmetry helps explain why cryptocurrency is viewed as a means to get ahead, rather than a replacement for traditional investing.