Why are millenials investing in crypto?

Why are millenials investing in crypto?

By bit.team

To begin with, let’s look at the Blockchain Capital Blog data for 2021. The leading group of cryptocurrency users were people aged 25 to 33 years, they accounted for 32.76% of all traffic. At the same time, those aged 18 to 24 accounted for 32.21% of traffic. This means that more than 64% of all traffic comes from millennials and zoomers (known as Generation Z). The Blockchain Capital Blog report also showed that adults aged 18 to 34 have the highest awareness of BTC – 90%.

But we are not going to discuss the popularity of BTC here, but we want to discuss why BTC is popular among the younger generation. If you are interested to find out why BTC has gained popularity among young people, keep reading. We will sort everything out so that you can better understand these two generations.

BTC, and the benefits of this trend

If we recall that according to Coinmarketrate.com Bitcoin is an excellent means of preserving value, then there are several other reasons why young people invest in cryptocurrency. Among them are the current economic prospects and, of course, social networks.

  • Technological freedom

The first reason why young people are more willing to invest in BTC is that they are better oriented in technology. For most millennials and zoomers, the Internet was invented before they were born. This means that they have learned to use it from a very young age.

The use of cryptocurrencies often means that investors need to be technologically savvy. Unlike the baby boomer generation, millennials and zoomers usually don’t need to learn how to use the internet or a new app to start investing. In the best case, they most likely just need to press a few buttons and start their crypto journey in a matter of minutes. It is probably more difficult for older people to adapt to cryptocurrencies, due to the late development of technology.

Unsurprisingly, young people have an advantage when it comes to investing in BTC. Not only is it more accessible to them, but it also requires virtually no training.

  • Lack of trust in financial institutions

Another element of the growing acceptance of Bitcoin by this generation is based on the lack of confidence in the system among young people. Many of them were born during the economic difficulties of the 90s, and survived the crisis of 2007. At that time, Wall Street and many financial institutions around the world were struggling to stay afloat. As a result, many people found themselves in a difficult financial situation. The consequences of these difficult economic events have affected many millennials and zoomers.

In response, young people have started to stay away from Wall Street, Neglinnaya and centralized banking institutions, and are instead looking for a new system they could trust. After all, BTC can mean hope and change for future generations.

In addition, the standards for entering the cryptocurrency are low, which means that it is more accessible to everyone. By investing in BTC, young people want to speak out against the system that has shackled their families for decades. They just want change and hope that BTC can become that change.

  • Availability

The younger generation may also be interested in investing in Bitcoin because it is easier to understand them than stocks or specific commodities such as gold or oil. All you need to get started with cryptocurrencies is a valid email address, an official ID card and Internet access.

Investing in stocks, on the other hand, can require much more effort. Often it is necessary to provide documents to open a brokerage account, and this is just the tip of the iceberg. In addition, investing in gold and silver may require even more effort, since there are many different investment routes. This is a huge reason why young people are so interested in BTC: they are accessible to everyone, and it is easier to invest in them.

  • Social media

A CNBC study found that zoomers and millennials (ages 18 to 34) are 17% more likely to use social media research for their investment ideas than the rest of the population. These statistics clearly show that more and more young people are using social networks as resources to invest in BTC. In other words, social media has a significant impact on the younger generation when it comes to crypto investing. With the growth of their use, it is quite logical that social media plays a role in investing in BTC.

  • FOMO (lost profit syndrome)

Although we have already talked about how social networks affect young crypto investors, it is also important to discuss what role FOMO plays. In the world of cryptocurrencies, FOMO, short for “Fear Of Missing Out”, is an emotion experienced by an investor when he worries that he may miss out on potential benefits.

With the growing popularity of social media among the younger generation, it is not surprising that young people may experience crypto-fomo more strongly than people of the boomer generation. Young people may also experience FOMO because of the BTC success stories they hear on social media.

  • Financial literacy

The last reason why younger generations invest more in cryptocurrencies is that they can be more financially literate. Over the years, when student debt in countries such as the United States has reached an all-time high, younger generations tend to be more willing to discuss the topic of money.

In addition, they are offered a large amount of financial knowledge. According to the study, about 40% of millennials attended financial education classes. Although only 16% of millennials are considered financially literate, some other sources say the opposite. They and their financial comfort can explain why they are so willing to invest in cryptocurrencies.

Crypto Tips for Young People

Now that we’ve figured out why younger generations are interested in BTC, let’s talk about the investment process. Here are some tips to keep in mind when you are just starting your investment journey:

  1. Don’t give in to hype

We understand that there may be a lot of hype around BTC. However, when considering how to invest in Bitcoin, we recommend not acting under the influence of emotional impulses. This means that you should not succumb to FOMO tactics (fear of missing out) or any excessive excitement around BTC.

Stay calm and make sure that all your actions regarding BTC are justified. People can create a stir with the help of fraud, but do not forget to study every investment in BTC to make sure that the excitement is justified.

  1. Conduct research

Don’t forget to always do research. Find keywords like “how to invest in BTC”, “Bitcoin fraud” or “what is BTC”. This will help you learn a lot of useful and interesting content.

Research will always be your friend, and you can learn a lot on educational websites about cryptocurrencies. Just take the time to sit down and do your due diligence while exploring ways to use Bitcoin.

After all, always do research if and when you decide to take up cryptocurrency. We repeat again and again that research is your friend. It will not only help you better understand BTC, but also help you make the right decisions. Talk to millennials, zoomers and experts about why they love BTC so much.

Most importantly, there are many ways to understand why younger generations are so interested in cryptocurrencies. Perhaps they have something to learn from.

The content of this article is intended solely for informational purposes, you should not consider any such information or other materials as legal, tax, investment, financial or other advice. You should independently check the facts and data, conduct your own research and possibly seek professional advice before making any decisions.