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Millennials drive the Bitcoin economy

The millennial generation is expected to lead humanity into an era of fintech as they drive the adoption of Bitcoin in the next decade.

Research has shown that cryptocurrencies are three times more popular with millennials as a long-term investment vehicle than any other generation.

A survey of wealthy millennials conducted in the UK found that 20% have invested in cryptocurrencies. The survey found that 20% of people born between 1981 and 1996 had invested in the crypto space, assuming they had investable assets of £ 25,000 or more. That is significantly more than the national average of 3%. Additionally, it is over 29% for Millennials with over £ 75,000 in investable assets.

Millennials are killing traditional industries

Some of the main reasons millennials are switching to cryptocurrencies like Bitcoin to serve as an investment vehicle are:

  1. High returns from Bitcoin:
    In the past, Bitcoin has consistently delivered higher returns compared to stocks, except in 2018. Even if a person bought Bitcoins at their all-time high and held them for life, their portfolio would be positive.

Over the past ten years, the FTSE 100 (index representing the 100 largest companies on the London Stock Exchange – LSE) has achieved an annualized return of 7.38%. This is despite the fact that the annual returns are between -8.73% and +19.07%. Over the same period, Bitcoin investors only lost money 11% of the days, while profiting from it the remaining 89%.

Below are Bitcoin’s annual returns from 2011 to 2018:

2011: + 1.473%

2012: +186%

2013: +5.507%

2014: -58%

2015: + 35%

2016: + 125%

2017: + 1.331%

2018: -72%

2. Retirement items

Bitcoin is very volatile, which can be confirmed by its 30-day gains and losses of more than 100%. However, millennials are still comfortable looking at it as a retirement plan for two main reasons.

First, millennials are still a long way from retirement that they can afford to take some risks. Second, they lived through the real estate crisis, which was due to bankers and brokers playing quickly and easily with traditionally “safe” assets like stocks and houses. Bitcoin’s volatility and risk are not a huge problem.

One study found that an allocation of 5% Bitcoin in a traditional portfolio made up of 40% bonds and 60% stocks could more than double portfolio returns over a four-year period.

3. Digital world

Millennials grew up with and were shaped by the development of the internet. They prefer to pay with digital wallets and online banking, so Bitcoin as the currency of the digital world seems a lot more natural for a millennial.

Understand demographics

An online survey conducted in 2019 found that people between the ages of 18 and 34 are three times more likely to be familiar with Bitcoin than those over 65 and twice as likely as those between the ages of 50 and 64. That made millennials outnumbered any age group when it came to familiarity.

Additionally, 59% of millennials had a positive opinion about Bitcoin. That was twice as enthusiastic as the 35 to 44 year olds and three times as often as the over 60 year olds.

These findings are in line with Everett Rogers’ theory of innovation diffusion, which shows that innovators and early adopters of new technology are typically urban, educated, and young.

Tap Global enters the millennial market

Given that millennials are among the biggest players in the crypto space, it’s important to understand that these retail investors of today could be tomorrow’s institutions.

With Millennials’ growing interest in investing in cryptocurrencies, new tools and platforms are needed to facilitate the digital demands of young investors.

Tap Global offers you a complete crypto marketplace with its crypto banking app. In addition, it offers advanced tools like real-time trading, the ability to see your holdings at a glance, a seamless banking experience, and the ability to spend crypto with a tap of a finger.

Arsen Torosian, CEO of Tap Global, commented, “Millennial investors are very fond of investing in cryptocurrency assets. Tap Global has grown significantly since its launch earlier this year and we are currently expanding in the UK and EU. In addition, a survey conducted by Tap Global has shown that the majority of our user base is made up of people between the ages of 18 and 29. “

Conclusion

Given the above factors, millennials’ growing preference for cryptocurrency trading is less surprising than it seems. Members of this generation distrust the stock market and prefer app-based digital investment alternatives such as cryptocurrencies because they match these preferences.

Going forward, it is expected that an even larger proportion of Millennials would prefer crypto investments.

This article was contributed by Arsen Torosian, CEO, Tap Global

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