Why are Millennials investing in Crypto?
Today, the concept of numerous sources of income has a significant influence on the younger generation. We’ve seen that markets have been generating tremendous gains since the pandemic, and everyone wants to be a part of it. It has been fast building buzz among millennials over the last couple of years, especially following the pandemic, encouraging them to start investing in securities such as equities, mutual funds, and so on. However, “Cryptocurrency” is something that appeals to them more these days.
Here are a few straightforward reasons for this:
Quickly become wealthy
Cryptocurrencies such as Bitcoin, DogeCoin, Shiba Inu, and others have outperformed the stock market in recent years. Invest in Cryptocurrency and see your financial situation improve. However, the danger in the case of bitcoin is too big, but millennials prefer it since, in today’s society, who wants to wait years to double their money?
Short term is not an investment, but holding your position for at least five years is when compounding works. The Millenials want quick cash flow and huge returns, and Cryptocurrency that increases 30 percent in a day; the short term is not an investment, but holding your position for at least five years is when compounding works.
If we hold it for a few months, we can receive returns in cryptocurrencies that we can’t achieve in the stock market or any other asset classes.
Let’s see this “game theory” #america getting fully on board in #crypto #bitcoin #ethereum and #defi and when I say America I refer to all field of society “boomers & milenials” #banks and investors big or small @realmaxkeiser wins!! (Regarding #btc part of the cake) @DeFi_LaB pic.twitter.com/z5F2XSBwg6
— Cesar Serrano Vivas (@caserranovi) February 12, 2021
FOMO (fear of missing out) (Fear of missing out)
These days, Cryptocurrency is one of the hottest subjects. For example, three Millenials discussing the Shiba Inu rally caused the fourth to miss out; the fourth invested in Shiba Inu the same day, saw the graph and shared his experience with the other three. One of the reasons why millennials are investing in Cryptocurrency is that they do not want to be left behind.
Cryptocurrencies will be the “medium of exchange” in the future. Many businesses are already accepting Cryptocurrency as a form of payment. As a result, Millenials invest in Cryptocurrency since they believe it will boom soon.
It’s a decentralized system
Nobody in today’s world like being controlled or restricted in any way. Why are Millennials so enthusiastic about Cryptocurrency? Due to the fact that it is decentralized, It is free of bank and government control, and there are no limits. You can send and receive bitcoin whenever you want.
There will be no interference from regulators, so you can buy and sell whenever and anywhere you wish. One can build their own digital currency and purchase and possess it.
Both Generations X and Z are bullish.
The Generation X (ages 42-57) group is the next most likely to invest in bitcoin, with 28% of Generation X respondents claiming to have cryptocurrency holdings. With 23% of Generation Z possessing Cryptocurrency, they are not far behind. Cryptocurrencies are the second most popular investment behind stocks and ahead of mutual funds for both categories. According to Generation X and Z, Cryptocurrency will provide the best investment returns over the next decade, followed by stocks.
The baby boomer generation is a notable anomaly (ages 58-76). According to poll results, 43 percent of baby boomers have investments, while only 6% have cryptocurrency investments. Baby boomers are exceedingly unlikely to invest in NFTs, with only 1% of baby boomers doing so. Stocks, mutual funds, and real estate, according to baby boomers, will provide the best returns.
Confusion is as high as enthusiasm and self-confidence.
While many Millenials are enthusiastic about Cryptocurrency, there are still many doubters. More than 40% of respondents believed Cryptocurrency is too hazardous or unclear across all age categories.
“Baby boomers didn’t grow up with computers,” said Michael Anderson, a financial advisor and Certified Financial Planner (CFP) at Marinantha Financial in Ventura, California. “Stocks and mutual funds have shown to be long-term winners for Baby Boomers. They may want to continue with their current plan rather than diversify into cryptocurrencies now that retirement is approaching or has already arrived.”
Even among millennials, 44% believe Cryptocurrency is too complicated or risky to invest in. Meanwhile, 58% of baby boomers believe Cryptocurrency is too complex. Only 5% of baby boomers and only 3% of millennials can describe how bitcoins function.