It is no surprise that millennials are inclined to have their own thoughts on most aspects of life. When it comes to investing, it also appears that they are also becoming increasingly interested in alternative currencies such as bitcoin and various other cryptocurrencies out there such as Litecoin. According to recent studies, it appears that a large majority of millennials are opting out of conventional methods of investments, such as stocks, bonds, and market shares, and are somewhat sceptical about investing the way their parents did.
However, it is slightly questionable why millennials have decided to fall in love with cryptocurrency and, more specifically, bitcoins when considering that bitcoin was down roughly 55% for about a year recently, although the currency has made a mark for being exceptionally volatile. Despite this, it still seems that individuals who have bought into bitcoin all wish they had done so a lot sooner.
So, if you’re thinking about investing in Bitcoin, you will need to get a bitcoin wallet to get started. With that said, you must also delve into blockchain technology, understand how it works, and uncover investing strategies to buy in at the best times. That said, if you’re not entirely sure why millennials seem to have fallen in love with bitcoin and cryptocurrencies, we’ve broken down the new investment and why it’s simply so appealing.
A New Stereotype
Unfortunately, the general stereotype regarding millennials is that they are overly ambitious and, therefore, struggle to hold down jobs for substantial periods of time while also being far too focused on social media and noticeably inclined to instead splash out on luxuries rather than trying to save money. Although, there’s no doubt that most of the stereotypical theories are a bit far fetched, as in reality, even though millennials are known to enjoy pricey health foods such as avo, the constantly rising cost of living and exceptionally low annual median pay for youth suggest that millennials can simply not afford to make ends meet thanks to the state of the economy, rather than their own spending habits. For this reason, It becomes a lot more clear why millennials might be the savviest investors out there.
In reality, the stereotypes about millennials are not necessarily true or at all reliable. When considering that millennials have been through quite a few recessions and started life out in a stagnating job market, they possess a strange set of skills that could make them quite good at investing. Most millennials are constantly searching for savvy side hustles and means of making their money grow. Therefore, they are so sceptical that conventional methods of investing makesperfect sense when considering that shares and real estate are not doing too well currently. For this reason, millennials may have it right by opting to invest in bitcoin.
Useful Tech Skills and an Alternative Approach to Saving
Investing in bitcoin may be quite a money-savvy idea when adding in the unusual skill set that millennials have, such as growing up with the internet and understanding the power of tech, which results in an innovative mind. While the idea of bitcoin may seem extremely risky to older generations who have little to no knowledge of transferring funds online in general, it is not a naive manner of investing for millennials who have long adapted to the innovation behind cryptocurrency. Millennials have good reason to have lost their faith in traditional investing methods and instead opt to trust in digital currencies such as Bitcoin by investing in bitcoin using websites, available research sources, and their knack for wanting to earn enough to survive.
An Appeal for Bitcoin That’s Built Values
So, even though it is entirely understandable that millennials are falling in love with bitcoin, many believe that it is simply a passing trend that could soon fall apart. Fortunately, this is another false belief, much like the notion that millennials are financially reckless and spend their incomes entirely on avocado toast. In terms of the recent drop in bitcoin, the total number of bitcoin accounts has doubled to well over 35 million despite bitcoin having a noticeably bad year, proving that bitcoin’s popularity has only started. And with the recent pandemic, most individuals found themselves buying into Bitcoin after it was dubbed the new safe-haven investment, aligning its status with ancient commodities such as gold and silver. Millennials may also feel that investing in bitcoin is less intimidating than investing in stock markets, resulting from the recent fall in stock markets and the constantly struggling economy, which only worsened with the pandemic and rolling lockdown restrictions around the globe.
Crypto Is Kept Separate from Traditional Currencies
Bitcoin and cryptocurrency are practical and logical for millennials, it is impersonal, and therefore, previous student loans and debt are not considered when investing in bitcoin. Despite the highs and lows of bitcoin, it is most likely here to stay due to the relationship between millennials and cryptocurrency being based on multiple solid values. Therefore, it is a trusted way for these young people to save for their futures. Even though older generations may not decide to opt for bitcoin and cryptocurrencies, there is no sign of bitcoin becoming any less popular as younger individuals seem to have already built a solid and trusting relationship with bitcoin and will most likely continue to choose bitcoin in the future.
The above explains why millennials tend to opt out of conventional investing methods and instead fall to alternative investment options that some would consider risky. And millennials have simply given traction to the new investment option as gen Z will likely follow suit and keep crypto alive for the indefinite future. If you’re thinking about investing in crypto, you must first understand the currency. Once you know what it is and how it works, you will have the option to invest long-term, trade daily, or take advantage of the volatility of the currency by cashing in on profits short-term. When it comes to crypto, the options are seemingly endless.