How Financial Nihilism is Driving the Crypto Betting Boom

Two reports released in 2026 paint a stark picture of how younger generations in the United States are increasingly making high-risk financial decisions in response to a growing sense of financial nihilism.

A study from Northwestern Mutual, conducted in January, found that among Americans putting money into high-risk or speculative assets, 73% of U.S. adults, and a massive 80% of Gen Z, are doing so because they feel financially behind and believe traditional investing is too slow to help them reach their goals.

Table: % Who Agree “I invest in high-risk assets because I feel financially behind”

An Ipsos poll released in March shows exactly where that risky behavior is manifesting. It highlights that younger demographics are significantly more likely to use prediction markets, sportsbooks, and daily fantasy sports apps.

What is most striking about both of these surveys is that the Millennials and Gen Zers taking these risks are doing so consciously. They are aware of the level of financial danger, but they are diving in anyway.

While the older generation is quick to dismiss these platforms as ‘just gambling,’ the young people actually using them see something different. They are blurring the lines, viewing these markets as a speculative middle ground, a high-stakes version of investing that the traditional world doesn’t yet understand.

Table: Are prediction markets closer to gambling or investing?

The old approach of putting money into the S&P 500 and patiently waiting for 8-10% yearly returns is no longer enough for those trying to catch up to the American Dream. Today, they are turning to crypto, prediction markets, and high-velocity gambling. 

Generations priced out

It is a common lament on social media: the older generations like the baby boomers do not know how well they had it.

There is a sense of financial nihilism everywhere in the United States and the wider world. Buying a house for many feels more like a fairytale. 

The Northwestern Mutual data backs this up, showing that while 75% of Americans view homeownership as essential to building wealth, young people feel entirely priced out by high down payments and mortgage rates.

And after years of turmoil, the global economy cannot catch a break: the lingering effects of Covid, Russia’s invasion of Ukraine, and now war in the Middle East.

According to the Northwestern Mutual study, Americans overwhelmingly cite inflation (42%) as the number one obstacle to achieving financial security. Over half (56%) of adults expect inflation to increase even further this year, and nearly eight in ten (79%) have experienced elevated costs at the grocery store recently.

And the decision to invest in high-risk assets—which Northwestern Mutual classifies as cryptocurrencies, sports betting and prediction markets, options, and meme stocks—is a conscious one.

73% of U.S. adults who invest in these high-risk assets agree they do so because they feel “financially behind” and believe these methods offer a faster path to their goals than traditional investing.

Table: % Who invest because they feel “Financially Behind”

And this trend is most stark among Gen Z, with 80% of Gen Z investors agreeing with that sentiment. These are the individuals just starting out and trying to find their way in an economy where traditional milestones feel increasingly out of reach.

Where the money is going

The reports also tell us what Millennials and Gen Z are investing in, and how they view these different assets.

Of all the speculative assets being invested in, crypto is the king. The Northwestern Mutual study found that 32% of Gen Z and 35% of Millennials are currently investing in or considering it.

The data also shows that 32% of Gen Z and 24% of Millennials are currently invested in or considering prediction markets or sports betting sites in 2026. Among Gen X and Baby Boomers, these figures drop off rapidly.

Table: Currently invested in or considering in 2026

The Ipsos poll highlights that young adults are the dominant force driving the growth of prediction markets, sportsbooks, and daily fantasy sports apps.

The Ipsos poll also confirms that the public views crypto, sports betting, and prediction markets as carrying nearly identical levels of financial risk, around 90% for all three.

This is despite the CFTC and the prediction markets positioning themselves as far away from ‘gambling’ as possible. But the people using them see them as exactly that: highly speculative, just like sports betting sites or crypto assets.

A calculated choice

Gen Z and Millennials are using prediction markets, sports betting, and crypto not out of anxiety, trends, or what an influencer has said. They are doing so as a conscious decision to get ahead the only way they see how.

The data in these reports proves what the memes on Reddit and X already tell us: Young generations feel like the game is rigged.

But there is a glimmer of hope. The Northwestern Mutual report showed that things have improved over the last 12 months. Gen Z and millennials have a slightly better outlook. That report was, however, conducted before the current war in Iran. Maybe their financial nihilism is correct after all? 

Who am I to judge? I am one of them. 

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