Introduction
The love story between Millennials and Cryptocurrency has been creating a lot of buzz in the financial market. This love is also frightening the Government and the monetary regulators.
Ever since the adversities we faced amid the COVID-19 pandemic, there has been a significant surge in the use of digital payment methods, which attracted the young generation a lot. The millennials do not like carrying cash anymore and are inclined to pay for goods and services just with a tap in their phones.
Among all the cryptocurrencies, Bitcoins are loved the most by the Millenials. According to reports, people born between 1981 and 1996 are going to invest in Bitcoins more than any other form of investment like gold, stocks, or real estate. People from the Z generation are even trading on marijuana stocks you can click here to know more about trading and making profits.
5 Reasons Why Millennials Love Cryptocurrencies
There are several reasons that can be attributed to the love for cryptocurrencies by millennials. I am a millennial myself, and I have been investing in Bitcoins since I hit my early twenties.
1. Ease of Access and Use
The world has gone digital in a matter of a decade, and the payment methods should be too. Cryptocurrencies will further enhance digital payment methods. Millennials have realized the potential that cryptocurrencies hold.
Apart from being digital, it is decentralized. This means there are no intermediaries in between, and add to that; it does not have a regulatory body. It means that you are not obliged to give the account of your spendings to any legal body.
2. The rising inflation and the soaring Bitcoin price
Let us be honest! It is because of inflation, which is inevitable. Inflation under 2% is considered to be good for the economy, but rising inflation means the prices of goods and services are bound to increase. Now, this is where Bitcoins shine; there will only be 21 million Bitcoins mined in the whole world, so as a result, inflation in Bitcoins is next to impossible.
When Bitcoin was first introduced, its value was $0.0008, and now it hit an all-time high of a staggering $42,000. Financial experts have predicted that by the end of 2021, the value of one Bitcoin is going to reach a whopping $100k.
3. The Generation Gap
Researchers have found that the older we become, the more we start making risk-averse decisions. Most of the millennials are under 25 years of age, and they are investing very heavily in Bitcoins so that it turns out to be an early retirement fund. In the United States of America, most students take humongous amounts of loans in order to go to college.
Some student loans exceed 1.5 million USD., and even after that, they do not get good jobs and are not able to pay their debts, which takes on a severe physiological toll on them. If you invest in Bitcoins, at least there is a guarantee that you will earn from it, given the current market scenario.
4. It is a Digital World
From Facebook to Twitter to Whatsapp, digital media has become a part of our lives. And the tech-savvy generation appreciates digital payment methods more than carrying cash, which is why Bitcoins, being a digital currency, is loved by millennials.
5. Loss Of Faith In The Banking System
I am sure you, as a millennial, are frustrated about the conventional Banking system. In order to transact any cross border business, there is always a hefty amount charged by the bank as processing fees.
By doing this, a huge chunk of your money is spent just by paying the processing fees and adding to that the long time it takes for the transfer, which can be from 3-4 days to a week. All these factors have made millennials prefer Cryptos to Cash.
Final Thoughts
When the coronavirus first started spreading, most nations’ governments were insisting their citizens use digital payment methods and were imposing hefty fines on those who were using cash to prevent the spread of coronavirus.
This trend added fuel to the love of millennials for cryptocurrencies. In this day and age where pickpocketing has become a very common crime in the big cities, I bet Cryptocurrencies will benefit the millennials.
