Bitcoin and other cryptocurrencies are taking a significant share of traditional commodities like Gold and silver. In recent years, we have seen a dramatic turn of events on how millennials interact with money. According to the latest statistics from markets, experts suggest that 90% of millennial investors prefer Bitcoin over Gold. The effect is not on precious metals alone. Today, cash is losing young people’s allowances to digital wallets CashApp.
Data from Forbes shows that 27% of young adults prefer investing $1000 on Bitcoin to investing the same amount on stocks, real estate, gold, and government bonds. There are many reasons for this trend. Read through for more information.
Nate Geraci, president of the ETF Store, an independent investment advisor explained:
“When we talk to our younger clients – we have a core gold allocation in our portfolios, and they’ll ask about that and say, ‘What about crypto?’ And if you talk to, primarily millennials, and ask them which they prefer, bitcoin or gold, it’s a landslide. It’s not even close, it’s like 90% prefer bitcoin.”
The Great Depression of 2017 to 2019
The investment journey of most people in this age bracket began during this dreadful period. Most young investors put their cash on investments like Gold, bonds, stocks, and other traditional markets following their parents’ recommendations. These markets were thriving then, and there was no indication of a crash. Then came the worst economic time ever witnessed, and the young investors watched as their money plunged with the markets. This awful experience has made most millennials shy away from traditional markets, making digital assets a safe haven for this group.
Bitcoin Offers Good Returns
These are tough financial times, and this generation is facing an uncertain economic future. We live in a world where education, a good job, and living in a big house are not enough, and no one wants to sit and watch his/her money earn low interest. Bitcoin has stories that this generation can relate to plus crazy profits that nobody would want to miss. BTC is currently trading above $13000. In 2017, one Bitcoin was worth $1200 which means that if an investment was made during this period, the investor enjoys a 1083% ROI.
Millennials Are More Informed on Latest Tech Trends
Millennials can access more information on the latest technology compared to the old generation. To older adults, Bitcoin is a bubble, and they think it won’t last long. Also, it is difficult to understand this new concept. They have access to information about Bitcoin and blockchain technology. Cryptocurrencies and Blockchain technology offers a promising future for these young people compared to the traditional markets. They see them as a long term investment opportunity as there are a lot of aspects yet to adopt this technology. The mass adoption of the blockchain and Bitcoin presents a great opportunity for potential growth for their investments.
Bitcoin More Accessible Than Gold
Buying Bitcoin and other cryptocurrencies are easy. All you need is your smartphone and reliable exchange. It is not easy to buy Gold compared to crypto-assets; on the other hand, its storage comes with many risks, not unless you want to trust some with your Gold. Bitcoin can be stored on hardware wallets or online, which means millennials can access their assets anytime they wish. It is also for these young people to mine crypto. Although the cost is high, it’s nowhere near the cost and resource required to mine Gold and other traditional commodities.
Bitcoin is More Useful Than Gold
Today the use of Gold is limited to being the storage of wealth and in the jewelry and electronic device making. Gold reserves no longer back fiat currencies. To millennials, BTC is a borderless currency and can be translated at a minimal fee. They can assess their Bitcoin on their wallets from anywhere globally compared to Gold, mostly stored in the gold reserve. Digital assets have different uses. Some are used as governance tokens, for payment, utility tokens, and like Gold, they can be used as collateral to secure loans.
These are the reasons why a large number of millennials support bitcoin over gold. We will be seeing continuous growth in the number of supporters for bitcoin especially now that it has become the most dominant cryptocurrency in the market.