- As the economy has betrayed millennials more than any other generation entering the workforce, they needed to find out their own way of earning money.
- Bitcoin has proven to be a great alternative to gold investments, due to its unique nature and being immune to current economic affairs.
- Experts think that millennials will be a turning point for an investment revolution, as real estate and conventional trade marketplaces have demonstrated a great disadvantage during difficult times.
A relationship between millennials and digital assets is a never-ending story. This statement was, once again, proven after bitcoin rose by 37 per cent in November, bringing back the memories of December 2017.
As of today, one bitcoin is worth A$25,549.12, while in December 2017, it was just a bit under US$20,000. The surge indicates that bitcoin could be undeniably referred to as digital gold.
Some experts believe that the rise and shine of bitcoin would not be possible without younger generations, especially millennials that will soon form the majority of the overall workforce. They have shown a great affection towards modern assets that do not need to have a physical feature, while older generations are still flocking to the precious metal as the go-to resource.
On the other hand, some fear that current and future investors should be cautious about buying too much of this cryptocurrency, as it still requires a lot of development in the foreseeable future.
Bitcoin vs COVID-19
Some may say that the traditional economy has failed millennials and Gen Z, as the pandemic hit the globe at a time when many of them were on the job hunt. Having left the university and mired in huge debt, younger generations needed to think of a way to make money without having a full-time job.
For that reason, millennials turned to fintech and cryptocurrency, finding their safe haven. Bitcoin had shown an outstanding performance during COVID-19 times, so it is fair to assume their choice was rational and well-thought through.
While fiat currencies significantly declined since January this year due to economic and political situations worldwide, bitcoin was not affected in the same way. Cryptocurrencies do not have central authorities that can inflate them by printing more money or mining more coins, but usually because of supply and demand. The crypto has gained more popularity during this year, hence its value is closing in on the all-time high of 2017.
Are millennials leading bitcoin towards a revolution?
Millennials and Gen Z were born in the digital innovation era, so it comes as no surprise that they are inclined towards digital assets a lot more than other traditional ways of payment.
A recent survey concluded in 2019 found that a generation aged between 18 and 34 is three times more likely to be introduced to bitcoin compared to baby boomers aged 60 and over, and two times more likely than the age group between 50 and 64.
Image Source: © Kalkine Group 2020
Bitcoin enjoys an almost 60 per cent affirmation from millennials, while half of the second most affirmative age group (between 35 and 44) believes that bitcoin is a good asset for investments.
According to research about bringing revolutionary ideas into the world, it is not shocking that millennials might bring a turning point for cryptocurrencies and other digital assets. A very similar situation happened with the credit card introduction, as well as internet banking. Now, it is up to millennials to lead the world, as most of them live in urban surroundings, are well educated, and are socially invested in their community of interest, but most importantly, are young.
Why would millennials want to change the well-known economy for something so ‘risky’?
With a scientific approach and thorough data analysis, some experts have found a reason why millennials might be attracted to non-traditional investments.
First and foremost, the economy did not treat millennials nearly as well as it did baby boomers and Gen X. The young generation suffered three major world recessions – 9/11 incident in the US (American millennials were mostly affected), the 2008 global financial crisis (GFC), and now the coronavirus pandemic.
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Some experts said that millennials are about ten years behind in financial development compared to any other generation and have suffered the worst consequences than anyone in the workforce. Recent unprecedented events have resulted in a 16 per cent decrease in millennial employment, while gen x and baby boomers had a 13 and 12 per cent plunge during their time, respectively.
As an outcome of these harsh recessions, even before the novel virus, most millennials failed to achieve the biggest accomplishments in life while their parents and grandparents did. Namely, buying the first property and starting a family happened a lot later in life for the millennials. Constant pay cuts and low salary hikes are not helping the already pessimistic phase that millennials are going through.
In conclusion, millennials were neglected by the system that had transformed many people’s lives beforehand, especially during the 80’s and 90’s of the 20th century. Traditional stock markets, real estate, and all other widely recognised investments have utterly failed millennials, so it is no wonder that the tech-savvy generation started looking into bitcoin and other cryptocurrencies for the very-much-needed reassurance.
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How does the future of bitcoin look like?
Many professionals suppose that millennials, or sometimes called crypto generation, will set a drastic modernisation in the regular finance world. Bitcoin is, for now, seen as the most significant leader for the new sector with a high possibility of transforming trade markets.
A tech-oriented generation such as millennials, does not want to hold onto physical assets anymore but is now opting for intangible assets that no economy can destroy or take away from them.
Historically, bitcoin has offered extremely high returns (sometimes of even thousands of per cent). On most occasions, it was on a better return scale than regular stocks, except in 2018 when bitcoin saw a 72 per cent decline. All data shows that bitcoin genuinely is a high profitable asset, even though it has been in circulation for only 11 years.
On the other hand, some specialists argue that bitcoin will still need a lot of time before it gets widely accepted. Yes, it truly does bring a lot of money back to investors, but older generations are still not entirely confident that bitcoin is the future of the marketplace.
No matter what financial and economic experts think, it is undoubtable that millennials have put their trust in bitcoin and that it is there to stay. With every year passing, brokers see more millennials joining the market, in cryptocurrency. As PayPal and some traditional stock markets are slowly allowing cryptocurrency in their systems, bitcoin may be at the very beginning of a success that is yet to come.