Why Are Millennials Investing In Cryptocurrency?
Written by Paul Cartwright on December 8, 2018
Despite the doom and gloom in the crypto investment markets, demand for digital currency remains high. With transactions becoming easier and less expensive, a larger number of people will buy and utilize crypto coins for personal and business use. In the spotlight are the millennials investing in cryptocurrency.
Market research shows that the biggest demand for digital coins comes via people between the ages of 18 and 34. A recent survey revealed that one in three young people are already using and holding crypto coins.
Here are some of the reasons you see millennials investing in cryptocurrency:
More Trustworthy Than Banks
A majority of millennials witnessed the global financial crash of 2007 -2008. That crash led to a massive credit crunch which in turn resulted in people losing billions of dollars. Alone, this may have influenced the increase in millennials investing in cryptocurrency.
Commercial banks and financial institutions lost considerable credibility thanks to the crash. While the real estate industry was the main offender, investment and commercial bankers actually made tremendous profit while speculating.
When the markets did collapse, banks were bailed out while there was no apparent accountability nor responsibility assumed by CEOs.
Though they did profit, most investment bank executives were also rewarded with lavish bonuses. Unfortunately, and maybe criminally, the huge losses were eventually paid for on the backs of millions of taxpayers.
Most likely, this additionally played a large role in interest by millennials investing in cryptocurrency.
This hypocritical double standard has not been lost on most people today. Indeed, Bitcoin was an attempt to eradicate current financial systems. Cryptocurrency is seen as an increasingly credible alternative by younger generations.
Simply Better: Millennials Investing In Cryptocurrency
Transfers of money and assets from one part of the world to another is simply better using digital currencies. Crypto currencies were designed to be simple for businesses and consumers online.
In a world that is increasingly interconnected, cryptocurrency is a far better alternative for those looking for fast and accurate transactions.
Digital currencies are obviously dependent on new technology. It’s worth mentioning that younger people are largely attracted to utilizing the newest technology available.
Practically everyone has a mobile device, therefore developers are constantly improving coin platforms to be utilized and powered by smart phones, etc.
Cryptocurrencies are always being designed to be transferred quickly from one mobile device to another just by aiming at each other. Today, transactions are authenticated simply through the use of finger prints.
Decentralization is meant to drastically reduce or eliminate the ability to hack into an account. Unfortunately most bank accounts are located in a centralized database and are vulnerable to cyber attacks.
The younger generations understand these improvements better than most which explains why we see an increasingly number of millennials investing in cryptocurrency.
Although Bitcoin doesn’t have a known developer, newer cryptocurrencies, such as Ether and Ripple, have existing business models behind them. These platforms are in a continuous development mode to improve the central blockchain which records transaction processing.
These companies are continuously developing new features for crypto coins that demonstrate consistent and rapid improvement over their predecessors;
Because of these continuous improvements, crypto is often considered the currency of the future. Fiat currencies are controlled by the government which is not very effective at keeping up with digital coins.
Based on the increasingly digitization of society and the government’s slow adaptation to new technology, one can only guess what the future looks like. Millennials investing in cryptocurrency may very well describe the landscape at present.
It is certainly possible that people will turn to digital coins en masse thus making fiat currency obsolete. Think of the near extinction of metal coins. Millennials understand this very well which is one of the primary reasons why they want to remain invested in cryptocurrency.
Based on an investment and financial point-of-view, millennials investing in cryptocurrency are simply being smart and hedging their bets.
Lack of Regulatory Control
Lack of governmental control is perhaps the most important reason for the rising popularity of digital currency with millennials.
The supply of digital coins is built into a system and cannot be manipulated as opposed to fiat currencies that is ripe in manipulation. This eradicates the problem of inflation and currency devaluation caused by the government’s printing and adding more money into circulation.
Another advantage is that digital coins cannot be controlled or depreciated by a central authority. Coins are built on a platform of P2P authentication meaning transactions must achieve majority consensus before becoming part of the ledger
Lack of central control allows digital coins to enjoy a high level of freedom. You might even say that they are the currencies of the rebellious and disrupters.
The majority of younger people tend to be progressive and oppose controls as they should.
Cryptocurrencies are thus extremely popular among most in the younger generations.