When it comes to investing, most millennials feel a definite disconnect between themselves and traditional investment methods such as property, shares, and bonds. Many of them believe that those strategies are for older people or individuals with more money.
A Currency for a Generation
Millennials are defined as those who become adults early in the 21st century or those born between 1981 and the early 2000s.
Growing up in the age of smartphones and connected devices, they are naturally interested in digital currencies and the technology on which they are based.
Millennials are also often impatient, unwilling to wait long periods of time for investments that appreciate slowly. Buying into property is one example of this, as it could take many years before a profit is turned on a house.
This makes cryptocurrency the perfect investment opportunity for people in this age group, as minimum investment amounts are low, and returns are swift in comparison to other options.
A British Study
According to London Block Exchange, five percent of people under the age of 35 have invested in some form of cryptocurrency. Eleven percent of the age group have confirmed they plan to invest in 2018, with a further 17 percent admitting that they are actively considering it, as published in the study. Although 57 percent of people over 55 who were surveyed, were wholly opposed to cryptocurrency investing.
What’s more, 24 percent of millennials under the age of 35 admitted regret at not buying into bitcoin sooner, after witnessing the record-breaking ascent of the digital currency in 2017.
The poll was conducted with 2,000 British citizens of various demographics taking part. More specifically, the report concluded that people from London were the most interested in cryptocurrencies, followed closely by people in the North East of England. Those that were least interested were people living in Wales, East Anglia and South-East England.
Founder and CEO of LBX Benjamin Dives explained how millennials view the rise of cryptocurrencies as a “new dawn” in finance. He also mentioned that cryptocurrencies such as bitcoin, ether, and litecoin would become more popular than bonds, property, precious metals or shares for this generation.
Increased Millennial Induction
Cryptocurrency expert Garrick Hileman echoes the belief that many more millennials will get involved in the digital currency space in 2018. He stated that financial institutions such as banks struggle to relate and connect with millennials, while the new technology behind cryptocurrencies has done nothing but attract them.
Even the initial stigma attached to bitcoin as the “currency of crooks” was quickly overcome, as millennials involved with digital currencies saw its worth and potential for what it was.
One such example is Erik Finman, a teenager who became a millionaire through bitcoin before the age of 18.
He invested $1000 in bitcoin in May 2011. At the end of 2013, his investment was worth $100,000, which he used to create a tutoring company. He later sold this business for 300 BTC, which further appreciated exponentially in the years that followed.
Despite the success of many through bitcoin and cryptocurrency investments, most centralized institutions still advise against investing due to the high risk associated with the volatility.
Laith Khalaf of Hargreaves Lansdown warns prospective investors to be careful, “They should also be willing to sustain the large losses which could stem from the volatility of the cryptocurrency.”