Data published by Consumer Affairs, provided by a recent survey, claims that crypto is one of the most regretted financial decisions, especially for older generations. Often referred to as “Boomers,” these groups of people have regrets about investing in this emerging asset class, as the study claims.
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The study was conducted with more than 1,000 adults in the US and aimed to discover the country’s financial behavior after the fact. In the survey, participants were asked how often they regret not making a financial decision, and that this is a common feeling among Americans.
About 22% of respondents said they always or often regret financial decisions after they were made, while 45% answered sometimes. A minority of the respondents indicate that they never or rarely experience this feeling.
The study indicates that people with ‘advanced’ education were more likely to regret financial decisions than people without higher education. In this context, younger generations, especially those referred to as Gen Z, are “more likely to regret financial decisions.”
In addition, the study attempts to determine the respondent’s greatest long-term financial regret and ability if these “mistakes” could have been avoided. The majority of participants believe that credit cards have had a long-term effect on their finances.
As can be seen below, people in the US blame too much credit, little retirement savings, emergency savings, and little long-term investment for absorbing much of their wealth. Overspending is also a big factor in this statistic.
Ironically, those with higher degrees, those with perhaps more wealth-generating abilities, regretted spending too much on education or spending too much on the real state. 11% of respondents think they could have as much as $100,000 more if it weren’t for these factors.
The study does not provide data on the impact of inflation on people’s wealth. According to the latest consumer price index (CPI), inflation is at a multi-decade high, close to 8% and could reduce people’s purchasing power.
During the same period, Bitcoin and the crypto market managed to exceed the total market cap of $2 trillion.
Boomers regret buying crypto
As the COVID-19 pandemic began globally in 2020, the demand for digital assets, services and products grew. The research shows that people have regretted their purchase of real estate during this period.
Most respondents regret buying houses, cars and cryptocurrencies as investment vehicles. As can be seen below, 49% of respondents regret buying a cryptocurrency while 32% said they are happy versus 20% neutral.
While those who missed one of the biggest rallies since Bitcoin was created would feel neutral about not entering this sector. Only 16% of respondents regretted not buying versus 34% who said they were glad they stayed out.
NFT holders have similar results: 46% of buyers regret their purchase, while 40% of non-buyers say they are glad they didn’t invest. The study claimed:
Cryptocurrency and unique collectibles became popular investment opportunities during the COVID-19 pandemic. † Survey respondents who bought crypto found that they were highly divided.
The data provided by the study indicates “overspending” on homes, but in 2021 alone, real estate costs and construction costs have increased by as much as 20%. A separate study from Nationwide indicates that the average investor is “priced out of the market”.
In this inflationary environment, cryptocurrencies and digital assets were among the few assets able to generate yields above the CPI. The long-term investor seems to understand that.
Going back to the first Consumer Affairs survey, digital assets have surged higher in people’s retirement plans. 28% of respondents said they would have liked to invest in the sector before retirement. Mutual funds, ETFs and traditional investments still dominate.
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At the time of writing, Bitcoin is trading at $42,300 with sideways moves in the last 24 hours.
BTC with moderate gains on the 4-hour chart. Source: BTCUSD Tradingview