The cryptocurrency market created Bitcoin, jobs, inspired the creation of startups, and spawned hundreds of crypto tokens. Millennials are now pouring their savings into Bitcoin and other Cryptocurrencies survey shows.
A recent survey by The Sydney Morning Herald showed that one in every five persons aged between 25 and 40 owned some form of cryptocurrency. As per the report, at least 50% of the respondents made their first cryptocurrency investment in 2020. This was the result of increased interest in Bitcoin that was fuelled by the Covid-19 pandemic. The group cited the social media “memes” and the abundance of free time during lockdowns as their motivating factors.
Crypto is suited to millenials
Cryptocurrencies are uniquely suited to Millenials because they are a generation that has grown up with digital technology at their fingertips. For them, technology feels completely natural and has become a way of life. Whether it’s ordering food or hailing a taxi, booking a holiday, or finding employment, Millenials use technology, and it’s easy to factor in cryptocurrency. To quote Simon Yu, Chief Executive Officer of StormX, a blockchain startup:
“Millennials are particularly open to embracing new technology in order to create opportunities for themselves–and blockchain, the tech behind crypto, is no different. As masters of the side hustle and challengers of the traditional 9-5 working lives of previous generations, Millennials are welcoming blockchain with open arms.”
A recent report by Cryptovantage showed digital currencies made up to 12% of the investment portfolio of Millenials. As per the report, three in every four young investors reported making money on their crypto holdings. The study revealed that cryptocurrencies had reported significant gains of up to 154% in value since January 2021.
Curiosity is the first reason for investing in crypto
For instance, the price of Bitcoin soared more than six-fold from just over $13,000 in June 2020 to over $58,000 in April this year and now back to about $48,000. The report revealed that curiosity was the first reason people across generations invest in cryptocurrencies. After curiosity, the search for higher returns ranks second among the reasons. However, for Millenials, the belief in making an ROI is not the main reason for investment. The report said:
“Despite this larger proportional holding, Millennials were not the most likely to report making a profit in cryptocurrency investing. Xennials, with the largest total investment, were the most likely to make a profit off crypto assets at 80.5 percent, compared to 76.2 percent of Millennials and just 71.5 percent of Gen Xers.”
Learn as much as you can
It’s an open secret that even though crypto investment is in its infancy and still an intimidating technology, Millenials have taken it head on. Lack of government regulation and history of volatility makes most people a little skeptical. The best way to deal with the situation, at least until things become stable, is for Millenials to learn as much as they can. You may want to invest only as much as you can afford to lose and still be able to pay for your necessities. Arran Stewart, the cofounder of blockchain recruitment platform Job.com advises:
“Never do anything blindly, including investing or participating in cryptocurrencies […] allow yourself a day to truly read and understand it all. After that, only go in at a financial level you could afford to lose completely, which would not affect your life. With that, you’re all set to join the cryptocurrency revolution.”
Tom is a long-serving freelance writer who specializes in the blockchain and cryptocurrency niche. You may even call him a crypto-enthusiast with over 10-years’ experience in content creation, blog writing, and SEO. He is a philosophical figurehead who believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.