Why Housing Costs Are Pushing a Generation Toward Digital Assets
Nearly half of American investors under 35 now own cryptocurrency, according to Coinbase’s latest “State of Crypto Q4 2025” survey. The research, which polled 4,350 adults including 2,005 active traders, reveals a sharp divide between generations: while 45% of younger investors hold crypto, only 18% of older ones do. This isn’t just youthful speculation—it’s a calculated response to a financial landscape that feels increasingly broken.
Home prices have skyrocketed, student loan debt lingers like a shadow, and wages simply haven’t kept pace with inflation. It’s no wonder that 73% of respondents under 35 believe the old playbook—401(k)s, homeownership, blue-chip stocks—no longer delivers the wealth-building results it once promised. As a result, they’re allocating about a quarter of their portfolios to what the report calls “non-traditional assets,” triple the 8% that older adults set aside.
Four out of five young participants say crypto offers opportunities their parents never had. Nearly half want early access to new tokens before they reach mainstream exchanges, showing an appetite for risk that used to be reserved for venture capitalists. For this generation, bitcoin, ethereum, and a constellation of altcoins aren’t side bets—they’re core holdings. The logic is simple: if traditional paths to wealth are blocked, maybe a volatile, 24/7 global market is the best shot at life-changing returns.
A Fundamentally Different Approach to Risk
The gap between age groups goes deeper than ownership numbers. While a FINRA Foundation study shows overall U.S. interest in buying crypto dropped from 33% in 2021 to 26% in 2024—along with rising concerns about risk—those cautious attitudes belong mostly to older investors. Meanwhile, 80% of younger respondents say they’re eager to explore new markets “before everyone else.” Their curiosity extends beyond simple token ownership into perpetual futures, decentralized lending, prediction markets, and even fractionalized ownership of real-world assets.
This shift is fueled partly by “finfluencers”—61% of investors under 35 rely on YouTube videos or peer recommendations as their main research sources, bypassing licensed financial advisors entirely. The combination of frequent trading, social validation, and platforms that never close creates a self-sustaining loop that traditional brokerages can’t easily replicate.
Of course, high risk cuts both ways. Crypto’s volatility has burned plenty of early adopters through boom-and-bust cycles. But the Coinbase report notes signs of maturity: more retail investors are dollar-cost averaging instead of making all-or-nothing bets, and many hold their positions for years. Market crashes, rather than scaring people away, have often become buying opportunities for newcomers hunting for better entry prices.
Platforms Scramble to Meet the Moment
Financial technology companies are racing to adapt. Coinbase, for instance, is building what it calls an “Everything Exchange”—a single platform where users can trade traditional stocks, cryptocurrencies, and event contracts any time of day. The idea is to match the expectations of internet-native users who want instant settlement, minimal friction, and an experience that feels more like a social app than a bank terminal.
This isn’t opportunism—it’s survival. The survey found that 35% of affluent young Americans have already pulled their money from advisors who refused to offer digital asset exposure. And when institutional giants like BlackRock and Fidelity enter the space, four out of five respondents see it as proof that crypto is here to stay.
The Regulatory Tightrope
As platforms expand and younger traders dive into increasingly complex products, regulators face a tricky balancing act. The enthusiasm for derivatives and early-stage tokens among less-experienced investors raises real questions about consumer protection. But cracking down too hard risks making the wealth gap even worse by blocking access to the one asset class that younger Americans believe gives them a fighting chance at financial mobility.
Whether today’s twenty- and thirty-somethings will look prescient or reckless in hindsight remains to be seen. What’s already clear is this: when the old doors slam shut, people find new ones. And right now, those doors are on the blockchain.
