Why Millennials Own More Bitcoin Than Any Other Generation
Technology, especially FinTech, does not stand still, and evolution seems to have left behind a leading generation in the field of investment. For example, according to Coinmarketrate.com blockchain technology, which was talked about in 2009, changed the dynamism of finance, as it opened the gates for DeFi, decentralized finance. DeFi is a term for financial transactions without a central authority, such as banks, government, etc., has led to a new stage in financial investment.
Cryptocurrencies and DeFi tokens (digital assets) are accepted all over the world, but the demographic situation underlying this adoption shows that millennials are coping with this much better than others. The concept of cryptocurrencies is more common among young people, as it is a new way of investing, called “digital gold”.
The demographics of cryptocurrencies are quite predictable for several reasons. Boomers, Generation X, millennials and generation Z have somehow contributed to the massive adoption of digital assets. A recent survey showed that currently cryptocurrencies are owned by representatives of millennials and generation Z. 76.4% of cryptocurrencies are controlled by representatives of millennials, while 17.40% are in the hands of representatives of generation Z.
The remaining 6.1% belong to representatives of generation X, and boomers own 4.93% and 1.22%, respectively. These data clearly show that age and birth play a huge role in determining whether a person will buy cryptocurrencies. This demographic picture is the same in many countries.
A study conducted by the leading Gemini crypto exchange shows that 20 million Americans are preparing to invest in cryptocurrencies. In addition, 67% of millennials who participated in the survey said they would like to learn more about cryptocurrencies because it is a new asset class and they are likely to invest in the near future. In the field of day trading in cryptocurrencies, millennials are in the lead, as some of them have turned it into their full or part-time work, using profitability mechanisms.
Why Millennials are buying more mon et?
Social factors and technological advances can lead to decision-making by an entire generation. Cryptocurrencies and other digital assets are best understood by millennials, who currently make up the bulk of the workforce. The transition from the traditional method of financing to blockchain resonates with millennials, as they tend to look for more affordable investment alternatives.
Young people find cryptocurrencies attractive because they are easier to use and are investments that do not require much effort, while their capital remains in the wallet and can be liquidated at any time without unnecessary hassle.
Over time, it has been proven that people tend to abandon the old way of doing things in favor of a new model, which is usually more productive. The transition of millennials and representatives of generation Z from traditional investment models to blockchain says that young people adhere to the “future of money”.
Millennials are at the top of the crypto trend due to the speed of finance and investment development in the modern era. As bills and living standards continue to rise, young people are thinking outside the box to cover their expenses. Although cryptocurrencies are risky investments, young people are willing to take risks because of the wide range of opportunities they provide. DeFi tokens are growing every day, NFTs are experiencing rapid growth, play-to-earn platforms are expanding their reach, adding possible options for millennials.
Financial incentives from arbitrage and day trading in cryptocurrencies have also prompted millennials to take up cryptocurrencies. They are all over the world quitting their old jobs to join the crypto community as farmers, day traders and arbitrageurs. Earning pips on the difference between assets on several exchanges is a very profitable way of earning money for millennials and leadership in the financial world.
The adoption of blockchain technology also represents a transition from old money to new, and millennials want to control assets rather than leave them to a third party or the government. The fair and transparent impact of blockchain on finance is another reason for their growing adoption of the technology.
The adoption of blockchain technology also represents a transition from old money to new money, and they want to control assets rather than leave them to a third party or the government. The fair and transparent impact of blockchain on finance is another reason for the growing adoption of technology by millennials.
Although representatives of Generation Z are younger than millennials and should focus more on cryptocurrencies, they do not have enough economic power to compete with them. On the other hand, millennials are the current workforce, so they ideally combine familiarity with technology and finance to support their interests.
If Generation Z has more access to finance, like millennials, they will take first place in the charts. In addition, the rapid advancement of blockchain and dapps solutions in solving problems in the workplace is another factor that is an advantage of millennials.
The rise of cryptocurrencies last year can be compared with the support they received from Elon Musk. The billionaire has always tweeted about his love for blockchain, Bitcoin and Dogecoin. Elon Musk’s meme tweets appeal to millennials as they have grown up with the meme culture. Dogecoin, which started as a joke, soon interested everyone. Millennials have rallied around this coin and other meme coins more than any other generation.
The rest of the pack
Millennials own more cryptocurrencies than representatives of other generations. Although they naturally have an advantage due to technology and other social factors, representatives of other generations also contribute. In some circles, there is even a debate about how long millennials will be able to maintain control over the situation. Let’s start with the boomers. Boomers are the oldest generation that we will consider. Born in the period from 1946 to 1964, boomers are not technological favorites in the issue of switching to cryptocurrencies.
A common problem associated with boomers and digital assets is risk and exposure. Boomers are leading the way in terms of a diversified portfolio of stocks and other traditional asset classes, so their investment drive is beyond doubt. However, cryptocurrencies are highly volatile assets compared to stocks. In addition, they are not regulated by numerous governments threatening to ban them or impose strict restrictions.
Boomers and Generation X prefer stability in their investment choices. In addition, the growth of cryptocurrencies has suffered more at the hands of boomers, as they occupy the top positions in most government organizations. They openly declare the threat that cryptocurrencies pose to the world and their role in encouraging crimes on the “dark web”. This dark era for boomers and Generation X seems to be gradually changing, although much remains to be done. The mass adoption of digital tokens has led to the fact that more and more boomers and representatives of generation X are switching to cryptocurrencies.
This may be influenced by the fact that governments and the United Nations have supported blockchain technology. Various countries have even developed or released templates for their Central Bank digital currencies, which makes it clear that the future of money belongs to digital technologies. In addition, countries like El Salvador that support Bitcoin and huge tech giants will play a role in the future adoption of digital assets.
However, last year there was a greater adoption of digital assets, as the capitalization of the cryptocurrency market exceeded $ 2 trillion. Institutional investors who were skeptical about investing in cryptocurrencies gradually began to join them, and large banks added cryptocurrencies as a new asset class for their wealthy clients. As Goldman Sachs, JP Morgan, Morgan Stanley, etc. support cryptocurrencies, other financial institutions follow their example, which gives older investors more confidence that they can invest in cryptocurrencies.
Representatives of generation Z are the closest competitors of millennials in the field of cryptocurrency investments. Technology is on the side of Generation Z to take digital investment to a new level. The growth of social media has increased the exchange of ideas and helped create communities around digital assets. While other generations struggle to keep up with the far-reaching DeFi, representatives of Generation Z prefer digital investments to traditional forms of money. They consider themselves the ones who will implement the changes.
The boom of the NFT and the metaverse shows that the future of asset ownership and making money is developing rapidly, which is very pleasing to the representatives of generation Z. They now prefer digital collectibles because they can be easily exchanged for physical collectibles. The only limitation for Generation Z is funding. If they had the money that other generations have, they would be sitting at the very top of this chain.
The future of digital assets looks favorable, as in the coming years more and more people around the world will try their hand at handling coins. Although millennials are leading, Generation Z will rule in the future.
The growing DeFi technology is on the side of Generation Z, and as they gradually gain access to more funds, they will gain more digital assets. In addition, they view cryptocurrencies as a simpler form of investment and are likely to invest more in them than in traditional investments.