Millennials are drawn to everything that uses top-notch technological innovations. Take Vitalik Buterin, the founder of Ethereum, for example. He, too, is a millennial. Mileinas are literally willing to do anything for the sake of convenience. They want everything done on their phones, from ordering food, booking cab services to paying bills.
The recent coronavirus pandemic has further added fuel to the trend of paying digitally. When the coronavirus first started to spread, most governments were constantly condoning digital payment methods. They did not just stop there; in fact, they were imposing hefty fines on the people who were using cash to prevent coronavirus from spreading.
This made millennials invest and trade more in cryptocurrencies. If you too want to trade in cryptocurrencies, then I highly suggest you visit Golden Profit and get started. But these are not the only reasons.
3 Reasons Millennials Are Drawn To Investing In Cryptocurrencies
Down below are the top 3 reasons why millennials are drawn to investing in Cryptocurrencies.
Lack of faith in the conventional banking system
Millennials have lost faith in the conventional banking system. They want everything fast and quick. Cryptocurrencies have made it possible. For a cross border transfer, it usually takes up to a week in banks and adds to that the hefty transaction and processing fees, which eat up a huge chunk of the main amount.
Furthermore, since banks are centrally controlled, you are obliged to give an account of your spendings to the IRS. Otherwise, you might face tax raids and be charged with tax evasion.
Cryptos do not have such problems for a cross border transfer using Bitcoins; it takes up to 10 minutes, which is way faster than normal banks. And since cryptos are decentralized, a millennial does not have to defend the transactions to some legal authorities. All the transactions that take place in a decentralized network are between the buyer and the seller. All these advantages make cryptocurrencies way fancier to millennials.
Not Prone To Inflation
In this day and age, millennials are focused on handling their finances. This is where cryptos win the race to fiat currencies by a mile. Since there is a limit to which Bitcoins can be mined, so it is considered a scarce resource. The value of Cryptos is only going up, given normal market conditions.
When Bitcoin, the #1 crypto, came under the radar in 2009, the value was only $0.0008, and now when I am checking the price, the value is a staggering $33,980. The mining cap of Bitcoin has been set to 21 million.
Another reason why more millennials are drawn to investing in Bitcoins is that since March, the Us Government had been releasing Stimulus Packages to aid the people affected the most due to the Coronavirus pandemic and the imposed lockdown.
This meant the Government needed to bring more fiat currencies into circulation. This led to Inflation and weakened the US dollars. This made millennials invest in Cryptos to avoid Inflation.
Price Hike Amid COVID-19
The COVID-19 severely affected the lives and livelihood of a lot of people. The cryptos market was not spared either. Bitcoin’s market collapsed during the Government imposed nationwide lockdown. As investors were losing jobs and incurring huge losses amid COVID-19, they panicked and started selling their Bitcoins.
As all the investors were selling off their Bitcoins simultaneously, a bearish market was generated, and the prices fell down to $3000. But investors who were mainly millennials and had a pretty good concept of the crypto market knew the potential that Bitcoins carry took this a perfect opportunity to buy Bitcoins as the prices were already low.
Soon more joined the trend, and within a couple of days, the prices of Bitcoins started soaring, and the prices of cryptos have been on the rise since then.
I am a millennial crypto trader myself, and the reason why I personally think millennials are drawn to investing in cryptocurrencies is because of the smartphone. Smartphones have become a necessity in this digital day and age. Along with the whole world, payment systems have also gone digital. Cryptos serve as a good digital payment method.