A recent survey by Empower reveals that Generation Z leads all age groups in cryptocurrency adoption, with 34% preferring digital currencies over traditional cash. The study, conducted in July 2024 among 1,009 American adults, highlights shifting payment preferences across generations.
While 52% of Americans still consider "cash is king," Gen Z is breaking away from this tradition. The survey found that 41% of Gen Z respondents use digital payment platforms more frequently than cash - substantially higher than the 27% average across other age groups.
The findings align with previous research showing Gen Z's strong appetite for cryptocurrency investments. A FINRA Investor Education Foundation study indicated that 55% of Americans aged 18-25 already invest in crypto assets, surpassing traditional stock investments at 41%.
Young investors are turning to modern information sources, with 48% learning about investments through social media platforms. YouTube emerged as their primary educational resource, followed by general internet searches, Instagram, and TikTok.
The data suggests Gen Z displays a higher risk tolerance compared to other generations, with 46% willing to take substantial financial risks. Half of the young investors admitted making investment decisions driven by FOMO (fear of missing out).
Despite the broader market uncertainty and recession concerns, Gen Z appears less cautious about holding cash compared to other generations. While 49% of Americans feel safer keeping cash versus other investments, only 39% of Gen Z shares this sentiment - matching Baby Boomers but lower than Gen X (44%) and Millennials (42%).
Looking ahead, financial projections suggest Gen Z's influence will grow substantially. By 2031, this generation is expected to surpass Millennials in total wealth, with forecasts indicating their income will multiply five times over the next eight years.