- August 11, 2018
- Category: Bitcoin, Cryptocurrency
Millennials for the most part have gotten a bad rap but they might be just what cryptocurrencies like bitcoin need to stay afloat despite recent criticism and China pulling from the market entirely. A recent survey conducted by a venture capital firm, Blockchain Captial, found that nearly a third of the millennials that they surveyed stated that they would rather invest in bitcoins and similar cryptocurrency than any other government bonds or stocks.
Bitcoin Over Bonds
Of the 30% between the ages of 18-34 that stated they would rather invest in cryptocurrency, it was found that they would rather own $1,000 of Bitcoin than $1,000 of any other government bonds or stocks that are currently on the market. On top of that, it was also found that millennials were more familiar with bitcoin and similar cryptocurrencies than those over the age of 65. About 42% of millennials were familiar with cryptocurrency while only 15% of people over the age of 65 knew what it was.
Bitcoin has grown immensely since it was introduced with an impressive 600% growth in the first year and it is expected to keep growing with the right investments. That being said, it does not seem likely that older investors are going to jump on the bandwagon and start scooping up bitcoins and other cryptocurrencies. So what draws millennials to this type of investment over traditional investments.
Government Skepticism Grows
For starters, many millennials are skeptical of the government in general and are looking for alternatives so that they can begin to grow their own investments without having to worry about the potential collapse of the investments that they have already made. Another draw is that bitcoin has grown so rapidly. Though millennials as a generation tend to have a good work record, they are also drawn to investments that have a fast and high return.
The Issue With Investing
Bitcoin as an investment has grown to as much as $20,000 which makes the overall market value of cryptocurrency over $250 billion. Gains for cryptocurrency are far higher than gains for traditional investments making them a particularly attractive prospect. Millennials are also far more likely to take a risk with their money than older investors which is another factor that makes them the perfect market for bitcoin and other cryptocurrencies.
The biggest issue that many people have with bitcoin and similar investments is that they are not traditionally backed by any specific government or agency. This means that if the market crashes, those that invested are essentially out of luck and have to find other means to recoup their losses. For millennials, it is far more likely that they are willing to take this type of risk than older generations that are a bit more reticent and a bit more hesitant to make any large investments with their money and with their capital.
Bitcoin and other similar cryptocurrencies are set to change and to grow in the coming months and the only way we can truly tell how the market is going to pan out is to watch what happens.