Bitcoin made the news in 2017, as the most popular cryptocurrency exploded from around $1000 to nearly $20000 in a record amount of time.
Yet, many wonder why youngsters are so willingly risking their hard-earned savings to an intangible asset with no inherent value. The truth is, not many people understand or are willing to understand why Bitcoin makes a great investment choice for the new generation.
Millennials – The biggest fans of Bitcoin
Traditional investing in bonds and stocks have not only yielded a small number of returns over a long period of time, but they are also very, very complicated.
Ask the average college student about it and he will make sure to point out that investing in stocks and bonds is boring and too “long-term focused”. Mention Bitcoin and he will start talking about it like it is his favorite football team.
According to a recent survey conducted by Blockchain Capital, 30% of youngsters aged between 18 and 34 would much more willingly invest $1,000 in Bitcoin than they would in government bonds or stocks.
The same study also showed that 42% of millennials know about Bitcoin, compared with a mere 15% awareness for elders aged 65 and up.
What makes Bitcoin popular amongst millennials.
The interest of millennials in buying Bitcoin is growing by the day, yet they are not the only ones interested in this market. Demand for crypto is expected to grow even more in the coming years.
One can say with relative certainty that, in 2019, more institutional investors will start taking notice of Bitcoin and other cryptocurrencies. This is not only because of the asset’s scarcity but also because young people believe it could serve as an eventual global currency.
Here are a few reasons why millennials love cryptocurrencies:
- They offer easy access to investing opportunities.
- Cryptocurrencies often offer substantially larger returns compared to traditional investing.
- Investors often develop an emotional connection with their “favorite” coins.
- Cryptocurrency is seen as a “revolution” against the untrustworthy banking system.
- One can send cryptocurrency to anyone in the world, instantly, with little to no fees.
Expectations of the short-term future
Timothy Tam, the co-founder of CoinFi, an advanced market intelligence platform for cryptocurrency traders, mentioned that it is very likely for the current market conditions to increase Bitcoin’s prices to levels higher than those we experienced in 2017.
“There’s limited supply because, aside from the fact that there will only ever be 21 million Bitcoins in circulation, most of the holders of Bitcoin are long terms holders. The demand, on the other hand, keeps soaring,” he mentioned.
And if we take into consideration the main audience that promotes and supports Bitcoin, we can easily understand that, by long term, we do not talk about the same measurement of time as the one used when it comes to traditional investing.
In the world of cryptocurrencies, 2 or 3 years can already serve as “long-term”.
Yet, Bitcoin is still a risky investment and many people choose to ignore this fact. Luckily for investors, 2019 has been a great year for cryptocurrencies so far. Bitcoin has seen an increase of more than 200% year to date, and the overall market sentiment is very optimistic.
Therefore, it may still be a good opportunity to buy Bitcoin and hold onto it for a few years.