Wealthy American millennials are backing cryptocurrency by ploughing their cash into the market, says a new study.
To qualify as wealthy the millennials must be aged between 24 and 38 years old with an income of $100,000 a year or $50,000 in clear money to invest.
One in four hold cryptocurrency, while another third are ‘interested’ in the investment, according to a report from financial firm Edelman.
“Anyone that has crypto tells me they wish they bought it sooner,” said Deidre Campbell, Edelman’s global chair of financial services.
“It’s not inherently that they’re riskier, rather better supported with savings. So they’re open to different opportunities.”
One conclusion from the study was that millennials trust the security of the blockchain over traditional financial services because they are wary of another financial crash.
UK may regulate ICOs
Britain’s cryptoasset taskforce is recommending the government’s consumer watchdog, the Financial Conduct Authority, should regulate ICOs.
Another consultation is likely within a few months to consider if regulation of derivatives, such as contracts for differences, options and futures should go ahead.
Andrew Bailey, chief executive of the FCA, said: “There is limited evidence of the current generation of cryptoassets delivering benefits, but this is a rapidly developing market and benefits may arise in the future.
“There are substantial potential risks associated with cryptoassets, and the most immediate priorities for the authorities are to mitigate the risks to consumers and market integrity, and prevent the use of cryptoassets for illicit activity.”
The task force will issue a list of regulated and non-regulated cryptoassets later in the year to guide investors.
What do blockchain engineers earn?
Working with the blockchain is possibly more profitable than investing, say tech recruiting firm Hired.
Software engineers are already at a premium and skills coding blockchain apps makes them even more sought after.
The average blockchain coder earns $170,000 a year and big firms like IBM and Microsoft are scrabbling to grab the best talent.
“There’s a ton of demand for blockchain. Software engineers are in very short supply, but this is even more acute and that’s why salaries are even higher,” said Hired CEO Menul Patel.
“There’s a mindset here of taking a long-term view of planning. If you’re going to build blockchain technology, you have to get that talent.”