There’s no denying that cryptocurrency is an abstract and confusing concept, but it often feels like a foreign language to boomers. It’s just nothing like traditional currency, and it even makes online banking seem simple. Here are 18 ways boomers are completely clueless when it comes to crypto.
Lack of Understanding of Blockchain
At the very foundation of cryptocurrency is blockchain technology, an abstract concept that eludes many boomers. Rather than seeing it as a secure and transparent ledger, Investopedia reports that 58% of boomers find blockchain tokens completely confusing. This basic misunderstanding can make cryptocurrency appear daunting, unreliable, and inaccessible, even if they do want to learn about it.
Confusion Over Digital Wallets
Anyone who wants to invest in crypto must use a digital wallet, something that is a source of confusion for boomers. Storing money in a virtual space, instead of a physical wallet or bank account, feels alien to them. Furthermore, there are just so many different types, and this unfamiliarity often leads boomers to hesitate to engage with cryptocurrencies; ultimately, they just want to know where the wallet itself is stored.
Skepticism About Security
Boomers frequently express doubts about the security of cryptocurrencies, and they’re not wrong to do so. Stories of hacks and scams fuel their mistrust, and unlike traditional banking systems with tangible safeguards, the abstract nature of digital currencies adds to their skepticism.
Difficulty With Technology
These days, technological advancements just don’t stop, and this rapid pace of change is leaving some boomers feeling left behind. Learning to use crypto apps, digital wallets, and exchanges all require a high level of tech-savviness that can be intimidating. Sadly, this technological gap often deters them from exploring cryptocurrency further.
Misconceptions About Legitimacy
Cryptocurrencies are often dismissed by boomers as illegitimate or risky investments, but usually, this perception is rooted in a lack of understanding and awareness. They may view digital currencies as a fleeting trend rather than recognizing their potential as legitimate financial instruments, or they may judge all crypto tokens based on the rug pulls they hear about on the news.
Lack of Knowledge About Mining
The process of mining cryptocurrencies is incredibly abstract, making it a complete mystery to boomers. The idea of generating currency through complex computer algorithms and powerful hardware is hard for them to comprehend. This knowledge gap can lead to misconceptions about how cryptocurrencies are created and valued, with some even thinking it has something to do with Minecraft.
Inability to Identify Scams
It’s a sad fact of life that boomers are often more susceptible to cryptocurrency scams, as they simply didn’t grow up learning how to avoid such things. Furthermore, their limited understanding of the technology makes them prime targets for fraudsters. Without a solid grasp of how cryptocurrencies operate, they can easily fall victim to schemes promising unrealistic returns.
Reluctance to Invest in Digital Assets
It’s not just crypto that boomers are avoiding; in general, traditional investment strategies are more familiar and comfortable for boomers than digital assets. The idea of investing in such assets, including crypto, seems risky and uncharted to them, which is fair enough, although they’re missing out.
Misunderstanding Market Volatility
Cryptocurrency markets are known for their volatility, which can be unsettling for boomers. Accustomed to more stable investments, the rapid price fluctuations of digital currencies are seen as a red flag. This volatility reinforces their skepticism and fear of financial loss, but in reality, such erratic price drops and increases are precisely why they’re so lucrative.
Fear of Legal Implications
It’s quite understandable that boomers often worry about the legal implications of using cryptocurrencies. Uncertainty about regulations and potential legal consequences makes them hesitant to get involved. This fear is exacerbated by the use of crypto in the criminal underworld, scaring them away, even if this fear is kind of unnecessary.
Perception of Complexity
As we mentioned earlier, there’s no denying the complexity of cryptocurrencies, and this makes many boomers concerned about their inability to properly learn, understand, and master utilizing a financial instrument with such a steep learning curve. Sadly, this discourages them from getting involved completely, as they like to learn things thoroughly–not just on the surface level.
Lack of Positive Media Exposure
Cryptocurrencies don’t always get positive media coverage, especially in outlets frequented by boomers. Sensational stories about scams, black markets, and insane losses dominate the narrative, and this skewed media representation can reinforce negative perceptions and deter them from exploring further.
Limited Peer Influence
Peer influence plays a significant role in financial decisions, so it’s only natural that boomers, whose peers are also hesitant about cryptocurrencies, are less likely to receive encouragement to explore digital currencies. This lack of peer endorsement can contribute to their ongoing reluctance, and they’ll be much more likely to stick to ISAs and bonds instead.
Unfamiliarity With Crypto Exchanges
Before a boomer can even invest in crypto, they first have to learn how to use cryptocurrency exchanges, which isn’t easy. Sadly, boomers may find the process of buying, selling, and trading digital currencies on these platforms confusing, putting them off from even getting past the first step of crypto investing.
Concerns Over Anonymity
The anonymity associated with cryptocurrencies is often viewed with suspicion. Boomers may associate this anonymity with illegal activities, and there’s no denying that this does exist. However, it’s an unnecessary concern as long as they have nothing to hide, but the perceived lack of transparency can still deter them from trusting and using digital currencies.
Difficulty Understanding Decentralization
Anyone who invests in crypto knows how confusing the concept of decentralization is. It’s a completely foreign concept to most young people, let alone boomers. Essentially, decentralization is used in contrast to centralized institutions like banks and governments, but even when this is explained to boomers, the idea of a currency without a central authority just seems strange.
Constant Changes
Crypto hasn’t even been around for that long, yet despite this, the scene has changed tremendously over the last decade. Things never stop changing, with new protocols, tokens, NFTs, and other features popping up all the time. Ultimately, boomers find this exhausting, putting them off completely. After all, technology today is already confusing enough as it is.
Preference for Traditional Banking
Above all, boomers are quite comfortable with traditional banking systems, with many of them only recently adopting online banking. This makes them less inclined to adopt cryptocurrencies because they’re quite happy with their familiar routines and established trust in banks. So, if you’re young and have a boomer friend or family member, consider offering to invest in crypto on their behalf, teaching them bit by bit, but don’t get your hopes up.