Millennials and Cryptocurrency: Why Young Investors Prefer Bitcoin, Ethereum and Other Crypto Investments
The stock market has been on a historic run for the last decade. Real estate is worth more now than ever before. Even mutual funds have seen higher returns. But there’s one type of investment that’s getting a lot more attention and one group largely responsible for driving its popularity: millennials and cryptocurrency.
The return of the S&P 500 over the last five years is about 50%. That’s a fantastic return on investment. But it pales in comparison to bitcoin’s return. In the last five years, bitcoin has returned over 2,500%. On top of mind-boggling returns, bitcoin is a new investment option that’s independent of any company, nation or stakeholder. It’s hard to ignore the appeal of bitcoin as an investment vehicle, and millennials have taken notice.
A Growing Preference Among Young Investors
A recent survey by Bankrate gauged investing habits across different age groups. And it showed that younger investors pursue cryptocurrency. Millennials are about three times more likely to have crypto holdings than Gen Xers. In fact, 9% of millennials surveyed believe cryptocurrency will be their best-performing asset long term. And while most still hold real estate in highest regard, cryptocurrency is becoming part of the millennial investing portfolio.
The story of millennials and cryptocurrency is a multifaceted one. There are several key drivers pushing younger investors toward cryptocurrency instead of traditional holdings:
- Mistrust: Many young investors are old enough to remember Enron. The shady dealings of Equifax are fresh in their minds. They’ve seen the likes of Sears, Toys R Us and other former staples go the way of the dinosaur. Needless to say, millennials aren’t entirely trusting of the public securities landscape. Couple this with growing instances of guidance manipulation and consolidating industries. Millennials aren’t seeing the stock opportunities that may have been there years ago.
- Technology: Cryptocurrency has a major draw because it’s an investment in technology. Growing up with the internet has made millennials trusting of digital assets. So a digital currency is the perfect marriage of technology and finance – rolled into a more modern investing package.
- Decentralized: Bitcoin doesn’t have a board of directors. Ethereum doesn’t report quarterly earnings. Litecoin isn’t subject to market headwinds. In an increasingly shaky globalized investing bubble, crypto operates outside of any single market or economy. This makes it more of a pure play.
These factors come on the back of the obvious demand for cryptocurrency. As a result, the prices have skyrocketed.
Investments in the Future
The longer crypto is around, the more it should stabilize. Early adopters are well-positioned to enjoy further growth. Right now, millennials and cryptocurrency are helping drive the market. They’re pushing bitcoin, Ethereum, Litecoin, Monero and dozens of other cryptocurrencies higher.
The infallibility of the blockchain, strong float across various coins and continued ROI from crypto investments as a whole show good investing opportunities. Millennials have already started staking their claim in the growing crypto market. It’s only a matter of time before more Generation Z and institutional investors follow suit. And when they do, crypto might experience yet another boom.
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