Overview:
Almost 94% of cryptocurrency purchasers fall between 18-40 years old, with Gen Z and Millennials constituting the bulk.
Gen X and Baby Boomers represent only a small portion of crypto purchasers.
Despite outnumbering older buyers, Gen X spends the most on average.
Despite having higher debt levels compared to the national average, Gen Z and Millennial crypto buyers actively invest in cryptocurrency.
Main Points:
– Nearly 94% of crypto buyers are either Gen Z or Millennials (18-40 years old).
– Gen X buyers spent an average of $9,611 on crypto last year, while Millennials bought $8,596, and Gen Zers bought $6,120.
– Millennial crypto buyers have 5.4 times more student loan debt, 2.3 times more auto loan debt, and 1.7 times more credit card debt than the national average.
The recent rise in cryptocurrency, including Bitcoin’s trillion-dollar valuation and growing interest in Ethereum and NFT art, has been notable.
Over the 13-year span of cryptocurrency’s existence, its potential has been debated. While the future of currencies like Bitcoin and Ethereum remains uncertain, some factors driving crypto’s growth are evident.
We previously discussed how buyers with lower FICO scores contribute to crypto’s expansion, prompting us to delve further into our data to understand the demographic makeup of crypto buyers and who is driving its future.
Key Insights:
94% of Crypto Buyers are 18-40 Years Old:
Before analyzing crypto spending, we examined the generational breakdown of cryptocurrency buyers:
Gen Z and Millennials collectively constitute nearly 94% of all crypto buyers, compared to only 6.14% among buyers over 40 years old.
Gen Z buyers outnumber Gen X buyers by 3.5 times and Baby Boomer buyers by 14.3 times.
Millennial buyers outnumber Gen X buyers by 15.5 times and Baby Boomer buyers by 62.9 times.
Hence, crypto largely appeals to younger demographics.
Gen X Crypto Buyers Outspend Gen Z and Millennial Buyers:
Although Gen X buyers comprise only 4.9% of all crypto buyers, they spend an average of $9,611 annually, surpassing Gen Z and Millennial buyers:
1.6 times more than Gen Z buyers
1.1 times more than Millennial buyers
Older individuals, with advanced careers and access to substantial credit, exhibit greater spending power and disposable income.
Contrary to expectations, older Gen X buyers, not younger ones, lead in crypto spending, indicating a correlation between age and expenditure in this market.
Debt Analysis:
Gen Z and Millennial crypto buyers bear higher debt burdens than older generations:
Gen Z crypto buyers carry 2.1 times more credit card debt and 2.0 times more auto loan debt than the national average.
Millennial crypto buyers carry 5.4 times more credit card debt, 1.7 times more student loan debt, 2.3 times more auto loan debt, and 1.6 times more personal loan debt than the national average.
Limited access to credit and elevated living costs for younger generations contribute to their higher debt levels.
Despite these challenges, Gen Z and Millennials continue to invest significantly in cryptocurrency, underscoring their confidence in its future.
Methodology:
The data analyzed in this report stems from over one million transactions by 1,536 Stilt applicants between February 1, 2020, and February 28, 2021. Debt-related data was collected from the same applicants during the same period.
Rohit Mittal, Stilt’s CEO and former Data Scientist at POPSUGAR and Verisk Analytics, prepared this data. Additional debt statistics in the U.S. were sourced from publicly available data published by Bankrate.
The findings are based on an analysis of transaction amounts and debt averages among users in different age brackets during the specified period. Stilt applicants include various immigrant statuses and non-immigrant U.S. citizens.
