Gone are the days when people hid gold into their bank lockers and invested the extra income into traditional financial instruments. Millennials are gravitating towards crypto investments rather than the conventional methods.
Crypto Investments: The Millennials New Way
A recent study report based on a study conducted by Harris Poll with Blockchain Capital suggests that nearly 27% of the millennials aged between 18-34 seem to be more interested in bitcoin rather than traditional securities. This survey conducted among 2,000 individuals further indicates 48% of millennials believe that bitcoin will be a key factor for innovation in the financial ecosystem.
Another report conducted by Adamant Capital further confirms this fact. The report implies that millennials are going to be one of the key contributors to the growth of bitcoin as well as cryptocurrency adoption.
The financial crisis has been a continuous reminder to people who chose to trust in their banks and governments. The wounds of the financial crisis have led to the loss of faith among people in financial institutions. A survey, consisting of 1,000 traders, conducted by the investment platform eToro indicates that more than 70% of millennials would rather invest in crypto assets if offered by prominent financial institutions. Further analysis reveals that more than 40% of millennial traders have more trust in crypto exchanges than the traditional stock market.
Finding the Right Reasons
All such recent studies seem to indicate that millennials are gravitating towards crypto investments in contrast to the traditional methods. Is it because cryptocurrencies like bitcoin offer a change from the centralized control of banks and governments? Or is it because the innovation itself seems to be holding a promise?
Well, the reasons may be varying depending upon each individual. However, investments made in bitcoin and cryptocurrencies also seem to be paying off. A report prepared by Bitwise shows how investments in crypto could have indeed paid off. Moreover, the study reveals that a 5% allocation to funds in bitcoin in a traditional portfolio made up of 60% stock and 40% bonds over a period of 4 years could have yielded a return that is more than doubled.
Furthermore, the beginning of a new decade marked bitcoin as the best investments of the last decade. Cryptocurrencies like bitcoin are a far change from the traditional instrumental investments like gold and stocks.
What Does The Future Look?
The shifting trends of millennials suggest a new wave of crypto tides and further mainstream adoption of cryptocurrencies. Moreover, the onset of regulated exchanges and institutions like Bakkt, have completely changed the perception towards crypto investments. They have opened the doorways to institutional investments in cryptocurrencies.
Additionally, countries are also now scrambling to developing a legal structure that allows cryptocurrencies to become mainstream. In the last year alone, a number of countries have given recognition towards crypto, a recent example of Germany has taken the steps that recognize bitcoin as a legal tender.
The crypto tide has already begun and millennials certainly seem to be leading it!