Bankrate Study Reveals Millennials Prefer Bitcoin as Investment Choice
Bitcoin to Be Investment Choice of Millennials
The older generation is more likely to invest in stocks, steering away from cryptocurrency vs. millennials who will likely invest into cryptocurrencies like Bitcoin. The reason, millennials are more comfortable with stocks than older individuals. Data was pulled from a recent research performed, dictating only 30% of millennials would prefer a cash investment over a digital one.
Millenials are going to be the biggest cryptocurrency investors in the next decade, being more comfortable with cryptocurrencies. Baby boomers on the other hand are more likely to invest in traditional stock options as are other generations. Virtual currency is still too unsure for the older generations, who would prefer regular investment options.
Still, others prefer to invest in cash investments, real estate of gold among other precious metals. Why are so many skeptical of cryptocurrency? It’s simple, the technology is still new, plus it is extremely volatile still – leaving older investors unsure – believing they’re too unstable to trust for investment purposes. Stocks and cash investments are more trustworthy to baby boomers, who see cryptocurrency as a fad or trend. Another problem is there is no protection with cryptocurrencies, fraud and cyber-attacks give older generations an underlying uneasy feeling.
As for millennials, they see cryptocurrencies like bitcoin as potential long-term investment options. With nearly a third of them choosing crypto as their first investment choice, it’s proof that cryptocurrency is starting to gain traction with the younger mainstream generation. Until the United States instills regulations on Bitcoin, Ethereum and other cryptocurrencies, it’s likely cryptocurrencies will not be the choice when making investments by the older crowd.
Older investors aren’t comfortable with cryptocurrency, many of them are not technologically advanced in any way – leaving the in the dark with cryptos – whereas the younger gen has seen cryptocurrency develop since its birth, particularly that of Bitcoin. The familiarity makes it easier for younger adults to trust cryptocurrencies, seeing intrinsic value in them, where older adults don’t. Also, millennials are more tech savvy, many baby boomers are not, meaning younger investors are not intimidated by digital currency or the setup of the software needed to manage it. Lastly, the fasted way to gain trust with the older generation would be for the SEC to approve a new exchange-traded fund. The start of an ETF for Bitcoin for example, would instantly give the token credibility, making the cryptocurrency trustworthy for the older crowd.
Where would you invest first? Tell us your list of investment choices and reason why in the comment section below.