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Bitcoin (BTC) remains a safe haven for millennials to invest their money, and has been for the past couple of years despite the market downturn. But why, exactly, is that the case?
Bitcoin, the largest cryptocurrency, is seen as a hedge against inflation and a store of value. With central banks worldwide printing money to stimulate their economies, many investors across different age cohorts fear the devaluation of fiat currency. Bitcoin’s fixed supply of 21 million coins and decentralized nature makes it an attractive alternative to traditional currency.
The COVID-19 pandemic has also played a role in the increased interest in Bitcoin. With the turmoil of stock markets and the global economy, investors are turning to Bitcoin as a safe haven investment.
The Growth of Affection Toward Crypto
The value of Bitcoin has fluctuated wildly, reaching more than $60,000 in 2021 to trading at around $22,000 at press time. Despite concerns over fraud and scams, investors, especially millennials, are willing to take the risk and view Bitcoin as a viable investment option. And as the cryptocurrency market grows and matures, more enthusiasts are jumping on the Bitcoin bandwagon.
According to a BanklessTimes.com report, millennials are more likely to take a risk when it comes to investments, with 67% viewing Bitcoin as a safe haven.
Most millennials that participated in the survey believe bitcoin will go mainstream in the following years. They also see it as a better monetary tool than the dollar, euro, or other fiat currency.
Speaking to BeInCrypto, BanklessTimes CEO Jonathan Merry stated:
“Millennials consider BTC a safe haven due to its decentralized systems and increased security. It gives them the power to diversify their investments, which is important in times of economic uncertainty.”
For instance, in 2021, nearly 50% of millennials, those aged between 25 and 40, were comfortable with crypto investments. Last year also saw a similar narrative as the cohort chose cryptos and Bitcoin in their retirement plans.
This is contrary to the belief of most people, particularly GenX and Baby Boomers, who are more skeptical about Bitcoin and its potential for success.
Understanding the Reason Behind the Affection
Millennials, also known as Generation Y, are those born between 1981 and 1996. They are considered to be the first generation to grow up with technology and are known for their tech-savviness and willingness to embrace new technology. This is one of the reasons why many millennials have shown an interest in cryptocurrency.
Cryptocurrency has become increasingly popular in recent years, and millennials are one of the demographic groups driving this trend. For many Millennials, the appeal of cryptocurrency is rooted in its decentralization and the fact that it operates outside traditional banking systems. This can make it an attractive investment option for those looking to diversify their portfolios or want to take control of their financial future.
Another factor contributing to millennials’ affection for cryptocurrency is their distrust of traditional financial institutions. Many millennials were coming of age during the 2008 financial crisis, which impacted their views of the financial system. They saw first-hand how the banking system could fail and are looking for alternative options.
Supporting the Cause, but at What Cost?
Does this generation of investors still hold this view? To answer this, BeInCrypto reached out to different millennials on Reddit (r/Bitcoin). Here are a few comments:
A majority (five out of the eight anonymous surveyed candidates) still believe and support Bitcoin. One of the Redditors said:
“No banker can debase Bitcoin via ‘money printing.’ Nobody can confiscate Bitcoin if you have properly secured the private keys (seed phrase). We don’t need permission from the government or any corporation to spend Bitcoin. So, Bitcoin is a safe haven, the superior form of money.”
However, it’s also important to note that the cryptocurrency market can be volatile, and investing in cryptocurrency comes with risks. As with any investment, it’s essential to research and understands the potential risks before investing, such as the possible collapse of crypto platforms.
In conclusion, millennials have shown a strong interest in cryptocurrency due to their tech-savviness, desire for decentralization and control over their finances, and distrust of traditional financial institutions.
However, like with any investment, it’s crucial to approach cryptocurrency cautiously and understand its potential risks. Regulators are constantly breathing down the neck to curb these decentralized institutions, mainly to regulate and control such organizations.