New research indicates boomers make better crypto investors
2 min read
As a millennial, it’s hard to say this, but boomers are doing crypto better. They are taking research methods used in the traditional markets and applying them to crypto projects, according to a new report from Bybit and consumer research company Toluna.
The report says that 34% of boomers spend “a few days” doing due diligence on a project before investing — 50% more than other generations. More concerning still, “64% of North American investors spend less than two hours or don’t DYOR at all.”
Boomers are also more likely to focus their research on technical factors such as tokenomics, revenue and competitor landscape. Compare this with their younger compatriots, who are more likely to prize reputational elements such as a charismatic founder and “website aesthetics.”
This shows that being a digital and crypto native is not as big an advantage as people think. It actually pales in comparison with some of the Warren Buffet-style skills that older investors have honed over the years.
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But Millenials and Gen Z are not really at an advantage when it comes to using social media to assess trends because it’s not new anymore. It’s Web2, and everyone already knows how to use social media. In fact, youngsters turn their familiarity with social media into a disadvantage by over-valuing it as a research tool, while boomers are more likely to stick to the facts.
Traditional investing due diligence continues to set apart the men from the boys, just as it has done throughout history. As long as it does, boomers will outperform younger generations because they do more research and tend to be more patient when it comes to investing, which leads to higher returns than younger generations, who may jump into an investment without fully understanding what they’re getting into. If you’re looking for someone reliable and knowledgeable about due diligence, look no further than your parents or grandparents.
Nathan Thompson is the lead tech writer for Bybit. He spent 10 years as a freelance journalist, mostly covering Southeast Asia, before turning to crypto during the COVID-19 lockdowns. He holds joint honors in communication and philosophy from Cardiff University.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
