Why Millennials Are Increasingly Turning to Cryptocurrencies
Millennials are increasingly putting their trust into cryptocurrencies according to many observers. Cryptocurrencies have now been around for more than ten years, long enough to no longer be seen as a novelty and gain some recognition, especially within this demographic. And this shift could have far reaching implications, especially with the prospect of another financial crisis on the horizon.
The Hard Numbers
A poll of more than three thousand millennials in the UK found that 21% of British millennials preferred to invest in cryptocurrency over real estate. Three fourths of those surveyed said that they preferred other options over investing in real estate. Nearly six in ten said property was a high-risk investment; a large number of 21 to 35-year olds who bought homes were advising their peers to keep renting. That’s probably why a little over a fifth of millennials were willing to invest in cryptocurrency despite its volatility.
Distrust of Financial Institutions
Many millennials distrust the property market and banks. While home ownership continues to be cited as a step on climbing up the socio-economic ladder, a large minority consider a forty-year mortgage a trap instead of an opportunity. This is especially true where home prices are skyrocketing, such as in the capital.
For many Millennials, the most important thing is the ability to invest only as much money as they can afford to lose without losing the ability to pay for everyday expenses. The fact that you can buy, trade and sell cryptocurrencies on demand without having to go through third party institutions is a point in its favour for many young adults. A side benefit is the ability to work anywhere and access money immediately, no matter where you are.
Seeing Cryptocurrency as the Future
A large number of young adults see fiat currency as being rendered obsolete. A number of people are investing in cryptocurrency through companies like ProCurrency because they see lending models and financial markets being revolutionised. Financial assets are being tokenised. Fundraising is going through websites and backed by cryptocurrency algorithms. They see investing in cryptocurrency as a way to capitalise on this future. They’re willing to use robots to invest in the cryptocurrency market as well.
They’re also the most likely to adopt technologies utilising cryptocurrency to enjoy life without being tied down, as the recent roll-out of locks on homes you rent via cryptocurrency payments demonstrates. For others, investing in cryptocurrencies that are part and parcel of smart contracts is seen as fueling innovation. The fact that you may use that same cryptocurrency to pay your rent via a smart contract backed by that cryptocurrency only adds to the allure.
They’re Accustomed to It
We’ve already mentioned that cryptocurrency is seen as mature for many millennials. Adding to the acceptability is the number of start-ups and jobs tied to it. If you or a friend is working with the technology, investing in it isn’t seen as risky because it is familiar. They may be working in such jobs full time, or they may be working in side gigs and paid in cryptocurrency to get around high freelancer fees.
Millennials are transforming cryptocurrencies from a fad to a mainstay. We’re only just now starting to see what blockchain technology can accomplish, but its widespread adoption and support by Millennials are set to create the future we’ve been promised since the beginning.
The views and opinions expressed herein are the author’s own, and do not necessarily reflect those of EconMatters.
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