Crypto Adoption Among Millennials Rise, Study Affirms
If cryptocurrencies are the future, then millennials are definitely on the right path as it seems like they are very prone to like cryptos. A new study made by Deidre Campbell, the Global Chair of Financial Services at Edelman, reported that the millennials are much more likely to invest in cryptocurrencies than older people.
According to Campbell, anyone that has cryptocurrencies today wishes that these cryptos were bought sooner. According to the study, these millennials have gotten tired of banks and conventional investing, so they are increasingly interested in cryptos.
About 25% of the people who answered to the study were either holding cryptos or have done so in the past. Also, 30% of them said that they wanted to investigate further on the matter. This proves that at least 55% are interested in cryptocurrencies and similar assets.
Ironically, it is a bad time to invest in cryptos as 2018 is having a severe bear market so most of these people are actually losing money in the end.
People like Arthur Hayes, the CEO of BitMEX, believe that the bear market will still continue for at least more 18 months so many millennials are in for some disappointment if they want to get good returns now. Because of this, there is a fair chance that some investors will stop to like cryptos before they can actually profit.
Millennials Do Not Trust Banks
One of the main reasons why millennials use so much this kind of service is because they simply do not trust banks at all. The major issue here is that, according to a recent Facebook research, only 8% of the millennials trust banks.
They are not very friendly with this kind of institution, so they do not like the models that they often consider to be outdated and inefficient. With a market is not tailored to young investors and that do not take into account their needs, it is easy to perceive how the investors are getting away from the traditional financial market.
In 2015, a Harvest University’s research discovered that only 14% of the millennials believed that people at Wall Street would do the “right thing”.
With more cashless alternatives an options, the young people are focused on using these new services as they see fit. Also, people from poor countries that are unbanked and young also make up for a large part of the population that uses this kind of service.
As millennials have ideas that are very different from their parents, they struggle to find a new financial system that can properly cater to their needs. With a financial market that is getting more and more aimed at young investors and a market that is not helping them, they simply look for something new.
The research surveyed 1,000 affluent millennials (as well as 500 non-affluent millennials), 500 affluent GenXers. Affluent are the people with ages from 24 to 38 that make $100,000 USD or more in a year.
Will cryptos be the answer? If you are reading this blog, then you probably believe that they will. In any case, let’s wait and see how the market develops to cater to the needs of the young investors.