The year 2017 has been the best year yet for cryptocurrencies. This is the year that Bitcoin turned itself into a household name. Ripple and Ethereum all made a massive increase in valuation. Are Millennials the leading players in this? A Harris Poll survey of more than 2000 U.S. adults seems to reveal this. In a recent survey, it was observed that 30% of millennials prefer to invest in cryptocurrencies rather than traditional investments.
Why Millennials are the leaders in cryptocurrency adoption
Profits
Bitcoin gained an increase to around $14,000 from just $280 hardly two years back. This adds up to about 4900% in profits. It’s no surprise that millennials want a share of this. Other traditional investments like stocks have gone from 15,700 to 24,400 in the same period. This increase adds up to a mere 60%.
Kyle Baird, a 30-year-old American expat teacher when asked about considering Bitcoin said, “I had what was basically all my savings previously in some stocks and a DRIP fund. These both had, at the time, made me more money than a traditional savings account would have. I was still unhappy with the returns and had been hearing about lots of people getting involved in cryptocurrency. I started to do as much reading and learning as I could and finally started to pull my stock market funds to try my hand at crypto. I saw huge returns at the beginning of the late 2017 bull run, and it got me hungry to keep the profits rolling in.”
Digital literacy
Cryptocurrency isn’t exactly easy to understand. People over 40 are not as literate in digital technology as Millennials. They are frightened by what they don’t understand. They prefer the safety of what they know. Millennials were born into the technology boom. They understand it better and are thus more likely to invest in it.
Lack of trust in Wall Street
During the financial crisis of 2008, most millennials were just getting done with school. It is clear that millennials are still traumatized by the events. They have lost their faith in Wall Street. They seek a better kind of economy. One that is not controlled by third-parties such as banks. A cryptocurrency like Bitcoin gives power to the people. People have the independence to make transfers without restrictions and limitations such as borders.
Volatility of cryptocurrency
Cryptocurrency is a high-risk endeavor. It is an industry with a speculative nature. Non-millennials are at an age where they want to settle down with their families. They cant afford the risk of losing all their savings in high-risk investments such as Bitcoin. The world’s most popular cryptocurrency suffered a record loss of 62% of its value this year.
Although research shows that Millennials are more willing to invest in cryptocurrency, a survey shows that only 4% of millennials are investing or have invested in cryptocurrency. Polls also show that Only18% of Americans would prefer to invest in cryptocurrency instead of traditional investments like government bonds. This shows that Americans still prefer traditional investments, This is mainly because cryptocurrency is very volatile. People also don’t understand cryptocurrency mechanisms in general, even the millennials. Despite this data, it is millennials who are expected to lead in the adoption of Cryptocurrency.
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