Bitcoin made the news in 2017, as it exploded from a mere $1000 to almost $20.000 within a short time.
Yet, many wonder why millennials are so carelessly risking their savings to buy an intangible digital asset with zero inherent value. The truth is, not many people know what Bitcoin and why it is a good investment opportunity.
So let’s find out what they know, that we should know too.
Millennials – The biggest fans of Bitcoin
Traditional investing in bonds and stocks have not only yielded minimal returns over the years, but they are also very, very complicated for beginners.
Ask the average college student about it and he will probably tell you that making money with stocks takes many many years. Ask him about Bitcoin and he will turn into a screaming fan, talking about the coins like it’s his favorite football team.
According to a recent survey conducted by Blockchain Capital, 30% of youngsters would prefer to invest $1,000 in Bitcoin than they would in stocks or bonds.
The same study also showed that 42% of millennials know about Bitcoin, compared with a mere 15% awareness for elders aged 65 and up.
What makes Bitcoin popular amongst millennials.
People who want to buy bitcoin is increasing by the day, yet they are not the only ones interested in the crypto-market. Demand for cryptocurrencies is expected to grow even more in the next few years.
Observers of the market can say with relative certainty that, in 2019, more institutional investors will start stacking up Bitcoin and other cryptocurrencies. This is not only because of the asset’s scarcity but also because the coin could serve as an eventual global currency.
Here are a few benefits of Bitcoin, that millennials love:
- They offer easy access to investing opportunities.
- Cryptocurrencies often offer substantially larger returns compared to traditional investing.
- Investors often develop an emotional connection with their “favorite” coins.
- Cryptocurrency is seen as a “revolution” against the untrustworthy banking system.
- One can send cryptocurrency to anyone in the world, instantly, with little to no fees.
Expectations of the short-term future
Timothy Tam, the co-founder of CoinFi, an advanced market intelligence platform for cryptocurrency traders, mentioned that it is very likely for the current market conditions to increase Bitcoin’s prices to levels higher than those we experienced in 2017.
“There’s limited supply because, aside from the fact that there will only ever be 21 million Bitcoins in circulation, most of the holders of Bitcoin are long terms holders. The demand, on the other hand, keeps soaring,” he mentioned.
And if we take into consideration the main audience that promotes and supports Bitcoin, we can easily understand that, by the long term, we do not talk about the same measurement of time as the one used when it comes to traditional investing.
In the world of cryptocurrencies, 2 or 3 years can already serve as “long-term”.
Yet, Bitcoin is still a risky investment and many people choose to ignore this fact. Luckily for investors, 2019 has been a great year for cryptocurrencies so far. Bitcoin has seen an increase of more than 200% year to date, and the overall market sentiment is very optimistic.
Therefore, it may still be a good opportunity to buy Bitcoin and hold onto it for a few years.