When cryptocurrency started out, many people thought it was useless because it was a currency that wasn’t even real. Flash forward 11 years and the cryptocurrency market is one of the biggest markets in the world. Cryptocurrencies like bitcoin which had a value of 10 cents per bitcoin just crossed over $60,000 in recent days. All prominent analysts can’t help but agree that cryptocurrency is the biggest and most profitable asset of this decade and it is here to stay whether anyone wants it or not.
Inspired by the stories of people who became millionaires just by buying a few hundred dollars worth of cryptocurrency when it was new, more and more users have been joining the investing ranks of the cryptocurrency industry. If you too want to be one of them, then we recommend you visit this site to start investing. Another reason for the sudden popularity of the cryptocurrency market is the digital currency’s resilience throughout the pandemic. When the Covid-19 pandemic hit, the entire global economy crashed and stock markets all around the world were adversely affected. The one currency which kept gaining in value was the cryptocurrency and insured the money of every investor who invested in it.
Considering the digital nature of cryptocurrency, you wouldn’t be too surprised to know that most of the cryptocurrency investors are actually rich millennials and it is quite popular among them. But you might be asking yourself – exactly why is that? Why is cryptocurrency more popular among rich millennials more than Gen X or baby boomers? If you too have been looking for the answer to these questions, then worry not because in this article we’ll tell you exactly why cryptocurrency is popular among rich millennials.
High returns from investing in cryptocurrency.
If you bought hundreds of bitcoins in 2010 by only spending a few dollars, you’d be a millionaire now. This crazy fact is what gets millennials so excited about cryptocurrency – the knowledge that it has so much more return potential in it than any other form of asset or stock. Even though the cryptocurrency is highly volatile and ever-changing, it has only been increasing in value in the past years. Even if you invest in cryptocurrency and forget about it for a few years, you don’t stand anything to lose – in fact, you might even end up becoming several times richer than you expected yourself to be.
Millennials especially understand the high potential of cryptocurrency after witnessing Bitcoin’s dramatic rise in value with their own eyes since its start in 2009. The astounding returns cryptocurrency can give is what motivates more and more rich millennials to invest in it. Just taking the example of the past year, Bitcoin dropped as low as $5000 per bitcoin at the start of 2023. However, by the end of October, Bitcoin already regained double its value. The next month it doubled again, and again and again until this year’s 2023 April where it crossed $60k. To put that into perspective, if you had invested $10,000 at the start of 2023 you would have had $120,000 in April with a 12x return value.
Millennials consider cryptocurrency investments “retirement money”.
Most investors are well familiar with the volatile nature of the cryptocurrency market. The cryptocurrency market is still young and even the most subtle changes affect it immensely. Just recently, when Tesla bought $1.5 billion worth of shares the bitcoin market immediately surged up in value. This shows how fragile and volatile the cryptocurrency market can be. Even after that, there is nothing stopping millennials from investing in cryptocurrency.
This is because even if the short-term nature of the cryptocurrency market is unpredictable and volatile, if you think about the market in long-term plans, you’ll realize that it only increases in value. As said earlier if you invest early in bitcoin, then after 5 or 10 years you can be assured that the money you invested will certainly have amazing returns. That’s why millennials are investing in cryptocurrency now so in their retirement, they still have a stable and reliable source of money providing them.
Millennials are used to the digital era.
The number one advocates against Bitcoin and cryptocurrency are those who are well-aged above the age of 65. Even Warren Buffet himself thinks that cryptocurrency is bound to fail one day. Millennials, on the other hand, don’t think so. They strongly believe in cryptocurrency because they were born just at the start of the digital era and have ushered in it. As such, millennials find cryptocurrency more reliable and safe than traditional stocks and assets.
That’s why, what might seem strange and unnatural to a ‘baby boomer’ or someone from Gen Y, doesn’t seem so for millennials. They view cryptocurrency as the future of the global economy and its savior – while the baby boomers view cryptocurrency more as an antagonist to the economy. As humans always tend to things they are familiar with, so will millennials tend to the one investment they are most familiar with – cryptocurrency.
Insurance from another economic crisis.
The Covid-19 pandemic brought down the entire global economy when it hit the world. One of the worst affected people were young adults who had started working in their new jobs but were fired and even their experienced seniors who had their paychecks halved. The worst thing is, Covid-19 also crashed the entire stock market and rendered almost everyone’s investments value-less, leaving individuals with no farm of monetary backup.
The only currency that wasn’t affected was the digitalized and decentralized cryptocurrency, which is resistant to inflation and regulation. It only increased more and more in value throughout the pandemic providing profits to everyone who invested in it earlier. Many millennials have, thus, started investing more and more in cryptocurrency so if an economical crisis occurs again they can at least have some capital insured safely. Investing in cryptocurrencies like bitcoin effectively assures them that they have a backup plan to rely on in case of an emergency.
Cryptocurrency is immensely popular amongst millennials and for the right reasons. We hope this article helped you realize those reasons and if it did, please consider following our website for regular updates as it will help us out immensely.