Cryptocurrency is no longer popular: Only 21% of Americans are willing to invest in it

Cryptocurrencies are losing popularity among U.S. investors, with experts commenting: “The shine has worn off these cryptocurrencies.”

According to a September survey result reported by the financial interest rate publishing platform Bankrate.com, only about 21% of Americans are willing to invest in cryptocurrencies in 2022. This is down from 35% in 2021.

Although the percentage of investors of all ages willing to invest in cryptocurrencies is declining, the decline is the largest among millennial investors. In 2022, less than 30% of U.S. investors aged 26 to 41 said they were willing to invest in cryptocurrencies; in 2021, this ratio was close to 50%.

This decline in favorability isn’t surprising, considering that nearly $2 trillion has been wiped out of the entire cryptocurrency market since November 2021.

James Royal, chief reporter at Bankrate, told CNBC’s Make It: “Traders of any asset are ‘sunny day lovers’ and with major cryptocurrencies like Bitcoin and Ethereum both down more than 70% from their all-time highs, the sheen that once surrounded them is gone.”

He added: "The decline in cryptocurrency prices has further reduced its appeal and has not helped to get more people to buy and sell cryptocurrencies." The prices of more popular digital currencies, such as Bitcoin, have been struggling to reach their 2021 highs. Since June, the price of Bitcoin has been hovering between $18,000 and $25,000, far below its all-time high of more than $65,000 in November 2021.

“The only way you can make money in crypto is by selling it to someone who is more bullish or dumber than you are,” Royal explained, adding that buying and selling cryptocurrencies shouldn’t be viewed as a traditional investment for this reason.

“It’s more like you buy a street arcade token and hope someone buys it from you later at a higher price,” he said. “Legendary investors like Warren Buffett won’t have their investments have anything to do with cryptocurrencies for this very reason.”

Cryptocurrency is considered a highly volatile asset, with prices that fluctuate unpredictably. Financial experts generally advise against investing more money in cryptocurrencies than you are willing to lose, as profits are not guaranteed.

“If you’re looking for a less speculative investment, there are more reliable options that have been tried and true, such as buying a S&P 500 Index Fund regularly and then accumulating a small amount over time. This wealth accumulation method has created many American millionaires,” Royal said.