Instant Crypto Lender Reveals How Millennials Spend Borrowed Bitcoin
Antoni Trenchev, the CEO of Nexo.io, a well-known crypto lender company, has recently talked to the crypto media outlet CCN and explained, in his view, how Millennials are spending the Bitcoin that they borrow from the Nexo platform.
Companies like this one let the clients borrow against their own digital assets and spend them without having to cash out their cryptocurrencies. This way, they protected against more taxes and will not miss out the chances of getting money from bull runs. Obviously, the prices are also prone to lose their value as well.
Because of this, people can either make money or lose it in this case, which can be considered a risky business, as investing in cryptos generally is since the volatility is always so high.
The CEO of Nexo, after talking about this, affirmed that the lending industry is hurt when there are too many people liquidating their assets. Fortunately, they did not start the company in January 2018, as the value of Bitcoin has plummeted since then. The launch happened in May when prices were trading lower and the clients who got in knew their risks.
He even affirmed that people would not generally expect people to be so savvy with their money, but they were. They structure their finances well and know what they are spending and how much they are borrowing. Because of this, they had very few liquidations since the company started out.
How Millennials Used Their Bitcoin
According to Trenchev, the company also intended to know how people were spending their money, so they tracked it. According to him, most people borrowed to go on vacation, not to make big purchases. He believes that this is very common in the “whole Millennial mindset”.
Consumer goods are on a downtrend but people are traveling more, especially using Uber and Airbnb. People, according to him, are looking for more life experiences instead of buying assets.
Obviously, he ignored in the interview how Millennials often have way less money than previous generations and how traveling is cheaper now exactly because of companies like Airbnb. This could mean that, more than only because they “love experiences”, Millennials are investing in what they can actually afford.
At the end of the interview, the CEO of Nexo also talked about how Brock Pierce recently secured the first mortgage ever using Bitcoin. According to him, he borrowed $1.3 million from the company and used it to buy a house in Amsterdam using Nexo. Now, he is renting the place.
He affirmed that we will probably see a trend of crypto mortgages coming up soon. People do not want to lose the BTC they hold, but some of them want to enter the real estate market, so this means that it is a way to diversify their portfolio.