Oct 9, 2021
WHY ARE MILLENNIALS SO PUMPED ABOUT CRYPTOCURRENCIES?
THE GOLDEN AGE OF CAPITALISM
The golden age of capitalism spanned from the end of the Second World War in 1945 to the early 1970s when the Bretton woods monetary system collapsed. It was a time of economic prosperity, with high and consistent levels of economic and productivity growth. A period of global economic expansion that began after WWII and ended with the 1973–75 recession.
The United States, the Soviet Union, Western Europe, and Asia all saw extraordinarily strong and sustained growth, as well as full employment. This was due to a number of factors, including an increase in manufacturing fueled by automation technologies, the displacement of coal in many applications by oil, and the widespread introduction of chemical fertilizers, tractors, pesticides, and other agricultural products, which boosted agricultural produce and exports. To put it another way, Boomers and Generation X (1965–1979) grew up in a culture where economic growth was stable, and job possibilities were plentiful.
Millennials, on the other hand, did not live through the golden age of capitalism. Instead, we grew up throughout the 1990s and 2000s, when economies began to falter, and jobs became insecure. They are growing and continue to grow up in an economy where the promise of a job at the conclusion of a degree is no longer tenable. Millennials have been looking for a way out of the traditional economy, and bang! Satoshi provided a way out in 2009.
HOW BITCOIN SAVED THE DAY
Aside from the culture generated by Bitcoin and other cryptocurrencies, one important driver pushing its popularity among Millennials is the fact that the fiat-based system has failed them. The Millennials are a generation molded by economic downturns. With unemployment levels after the Covid-19 outbreak now sliding back to levels seen in 2000, Millennials, who have already experienced a post-9/11 recession as well as a global financial crisis, are now facing yet another period of slower economic development than any other generation in history.
Millennials’ enthusiasm for crypto is a function of lesser risk aversion and tech-savviness among younger people. Furthermore, Millennials see it as an alternative to a volatile economic framework that has repeatedly failed them, which contributes to its ongoing surge in popularity. According to BLockfi statistics, cryptocurrency ownership will produce more generational wealth for Millennials than any other asset will.
THE MILLENIAL FRENZY
It is no longer simply about Bitcoin when it comes to cryptocurrency. Millennials are overwhelmingly the generation driving this trend. As the first generation to grow up with digital technology at their fingertips, millennials have different ways of thinking by default. Technology is smoothly intertwined into their daily lives in a way that feels perfectly natural.
From hailing a cab to looking for work, millennials do things differently from their parents. Even their financial habits are vastly different from those of their parents. For instance, even though Baby Boomers have been hit hard by the economy, they still choose to invest in assets such as stocks, bonds, and real estate.
Furthermore, Millennials have always been accustomed to working in a peer-to-peer environment. We are accustomed to being connected in a variety of ways, from video games to WhatsApp chats, 2go, etc. As a result, adopting and implementing blockchain technology was not difficult.
The Bitcoin Millennial fever can be explained by a few factors:
1. Bitcoin has ushered in a new era of culture.
Bitcoin has ushered in a new era of digital cash. From HODL to WHALE to BULL and BEAR, the Bitcoin ecosystem has its own language consisting of acronyms and jargon. Part of the appeal of Bitcoin is the culture surrounding it.
“When you buy into Bitcoin, you’re investing into a scene, and that scene can be a part of your identity,” says Finn Breton, a professor of science and technology at the University of California.
Cryptocurrencies have ushered in a completely new world, from celebrities who have invested in them to very active communities on Twitter, Tiktok, and Reddit.
2. Investing in Bitcoin is exciting.
Buying Bitcoin is like traveling to Vegas; it’s exciting and full of adrenaline. Investing has never been more enjoyable or interesting. In fact, I believe that generation x and y have a penchant for dull investments; they value seriousness, numbers, and the like. Millennials enjoy having fun, have high adrenaline levels, and have a lot of energy. Trading cryptocurrency provides all of these benefits and more. According to Tom Meyvis, Professor of Marketing at New York University’s Leonard N. Stern School of Business, continuously checking stock prices might be monotonous. It’s thrilling with something like Bitcoin because there’s always something happening.
3. High Reward, High Risk.
Bitcoin is a high-risk, high-reward investment. The prospect of a revolutionary technology excites people, and Bitcoin is no exception. With Bitcoin’s long-term prediction of $200,000 over the next decade, and mainstream financial institutions such as PayPal and Square investing in the technology, it’s hard not to be concerned about missing out. Add to it the viral success tales of people who have used Bitcoin. When compared to any other business, cryptocurrencies have produced incredible windfall millionaires.
SUMMARY
Bitcoin has been difficult for the typical investor to comprehend. Most people understand that if you own stock in a successful company, the value of your share grows. Of course, they can relate since they are investing in something solid, something genuine. However, Bitcoin is a somewhat fuzzy concept because most people do not comprehend how it was created or how the technology operates. Bitcoin and other digital assets have heralded the birth of a new asset class. According to investment specialists, this asset class should be viewed as a diversifier for investment portfolios.
The mystique or misunderstanding surrounding cryptocurrencies, however, has not deterred individuals from investing in them. So far, Bitcoin has been on an upward trajectory; it is expected to double or triple in price over the next decade.
While I am not a fan of investing before learning, anyone who is ready to take a shot on cryptocurrencies should do so. Why? Because in the last few years, we have witnessed a number of small, insignificant digital assets called cryptocurrencies, make a significant number of millionaires.
