Millennials are leading the cryptocurrency charge and changing the global financial landscape in the process. Recent studies are showing that millennials are the biggest investors in cryptocurrencies, investing at three times the rate of Baby Boomers. Changes in ideology and the relationship millennials have with the current banking system are also factors that are explaining this shift. Let’s look at a few of the reasons why the millennial generation is moving into cryptocurrency in full force.
A Broad Acceptance of Cryptocurrencies Overall
Cryptocurrencies have been around for more than a decade. That makes them familiar to millennials while it remains a novel technology or speculative investment to older generations.
Out of all groups, millennials display the greatest willingness to use cryptocurrency in general. Of those who think that cryptocurrencies will become widely adopted, a third said they’d rather shift to cryptocurrencies over fiat currencies like the U.S. dollar. When you take those broad statistics and break it down by age, it turns out that half of the millennials are willing to make that shift.
Millennials have the most positive attitude toward cryptocurrencies and are the most likely to think it will be widely adopted. Furthermore, it seems like their interest will lead to increased adoption. About 9% of those surveyed said they owned cryptocurrencies, while a quarter said they wanted to own it in the future.
A quarter of millennials surveyed about retirement planning said they’d like to move at least part of their retirement account savings into cryptocurrency. The only thing slowing down its acceptance is the concern that it is linked to illegal activities. But as the cryptocurrency landscape expands, we can expect new coins that address the issue to be released, which could encourage millennials who might be reluctant to invest in cryptos because of this reason to jump on board.
They’re Already Starting to Invest
One survey found that about a quarter of millennials say they already buy, hold or use digital assets. Another third say they are interested in investigating it as an investment option. That means more than half of millennials might end up holding cryptocurrencies in the near future. A different study found that nearly 60% of millennials had $500 or more invested in cryptocurrency.
One of the more notable findings is that many already feel like they’ve missed out on investing in cryptocurrencies, leaving them regretting not buying sooner. Many want to buy it so that they can get into a new industry they see taking off, while some see it as a way to make money fast. What this ultimately means is that we could see another craze comparable to Bitcoin if a promising new coin starts taking off, as more millennials become aware of their earning potential.
The Increasing Reliance on Tech by Younger Adults
Millennials use tech far more often than their parents. Half of the millennials use an app to invest versus 10% of Baby Boomers. And this is mainly because millennials are generally more open to embracing new technology.
For example, they’re welcoming blockchain in a number of other applications. This makes buying cryptocurrency via an app a logical choice for them. After all, if you’re already using digital payment services and sending money via apps, why not invest in cryptocurrencies via a different app while you’re at it? Baby boomers, on the other hand, might still be reluctant to truly embrace this shift towards a cashless society while it’s becoming second nature for most millennials.
A General Distrust of Traditional Financial Institutions
Millennials are more risk-averse than prior generations. This is partially due to their childhoods spent dealing with the aftermath of the Great Recession and the housing bust. They’re less likely to take on credit card debt, for example, though school loans are almost impossible to avoid. Their distrust of big financial institutions means they are very unlikely to use investing managers.
For example, where over a third of Baby Boomers want a professional to pick stocks for them, a quarter of millennials would rather do things on their own and only a few will rely entirely on a pro. And why should they, when sites like coins.live allow them to see crypto price fluctuations in real time and make their own research? And the wealth of information at their fingertips allows them to choose their community while sharing strategies without having to deal with a self-interested third-party.
Surveys are finding that millennials are very familiar and comfortable with cryptocurrencies, while a fair number already owning and using it. This will propel cryptocurrencies into the mainstream because it already is for the next generation.