Millennials have always proven to be an interesting crowd when it comes to finance. They do not adhere to traditional rules or reference points by any means. It also seems this particular demographic is quite keen on Bitcoin. In fact, a new survey suggests one in three Millennials will invest in Bitcoin rather than traditional stocks. That’s a pretty smart decision, to say the least, although it paints a rather interesting picture for the future of finance.
Stocks Have Less Appeal to Millennials
It is evident there are a lot of changes taking place in the world of finance right now. Both gold and stocks have become far less popular as of late. This is not a surprising development by any means, as both of those markets have struggled to yield significant returns over the course of the last year. Millennials in particular have little to no interest in stocks right now, and they are eyeing alternatives more than anything else. More specifically, they see Bitcoin as a far better investment alternative to the stock market.
Given the Bitcoin price trend throughout most of 2017, it is anything but surprising that a lot of people see it as the go-to investment vehicle moving forward. Whether or not the current uptrend will remain in place for much longer remains to be determined, as we have seen quite a few cracks in the facade over the past week or so. The biggest correction yet is taking place as we speak, which started right after the Bitcoin price reached a new all-time high yesterday afternoon.
That being said, most Millennials don’t seem too concerned about temporary setbacks right now. More specifically, they still see Bitcoin as being a better store of value than stocks are in their current form. A Blockchain Capital survey showed that around one in three people aged 18-34 favors Bitcoin over traditional stocks. It is not an overwhelming majority by any means, but it goes to show that cryptocurrency is gaining traction among all demographics. It will be interesting to see whether or not this initial excitement is justified, as it could go either way.
Do keep in mind we are not talking about Millennials dumping all of their savings into either Bitcoin or stocks. We are merely talking about setting up a portfolio with US$1,000 or slightly more. This amount of money is still a lot for most people aged 18-34 right now, though. Even such a small portfolio could result in major gains over the coming years. If the current Bitcoin price trend keeps up, US$1,000 worth of BTC may be worth US$20,000 in the next ten to fifteen years.
Although these numbers may seem promising, very few Americans actually own cryptocurrency right now. Just under 2% of the survey respondents own any form of cryptocurrency, whether it be Bitcoin or any of the alternative currencies. That is a very small number, although it was even smaller not all that long ago. It will be interesting to see if this investor base can get much larger in the years to come. Once Millennials get on board the cryptocurrency train, interesting things will happen sooner or later. Although the future’s uncertain, there is reason for cautious optimism.
Bitcoin and other cryptocurrencies are quickly dethroning traditional investment vehicles. While this does mean there will be even more price speculation in the future, it also shows people are showing an increased appreciation for what may very well be the future of money. It is always better to keep one’s eggs in many different baskets when it comes to making any investment in this day and age. Bitcoin and altcoins are a good fit in this regard; that much is rather evident.