Why Millennials Own More Bitcoin Than Any Other Generation
Millennials are different from other generations in many ways. The disparity between these generations can be seen in daily choices, even down to investment. From boomers to gen Z, each generation takes its path motivated by the social factors and technological breakthroughs in its youth.
The mass adoption of the world wide web led to a shift from analogue investment to the digital era. Boomers successfully made the switch to the stock market following a rise in investment banking and hedge funds.
However, technology, especially FinTech, isn't static, and the evolution seems to have left the leading generation in investment trailing behind. For example, blockchain technology which was flagged off in 2009, changed the dynamism of finance as it opened the gateway for DeFi, decentralized finance. DeFi, an umbrella term for financial transactions without a central body like banks, government, etc., has led to a new phase in financial investments.
Cryptocurrencies and DeFi tokens (digital assets) are receiving worldwide adoption, but the demographic behind the adoption shows that millennials are doing much better than the rest of the pack. The concept of cryptocurrencies is more prevalent among young people as it's a new way of investing and has been dubbed 'the digital gold'.
Current Crypto Demographic
The crypto demographic is entirely predictable as a result of several reasons. Boomers, Generation X, Millennials, and Gen Zs have all contributed to the mass adoption of digital assets in one way or another. A recent survey shows that the current ownership of cryptocurrencies is championed by Millennials and Gen Zs. 76.4% of cryptocurrencies are controlled by Millennials, while 17.40% are in the hands of Gen Zs.
The remaining 6.1% are held by Gen X, and boomers holding 4.93% and 1.22%, respectively. This data clearly shows that age and birth play a huge role in determining if one would purchase cryptocurrencies. This demographic is the same across many countries.
A survey by top crypto exchange Gemini shows that 20 million Americans are preparing to jump on the crypto train. In addition, 67% of millennials in the survey said they would like to learn more about crypto because it's a new asset class and is likely to invest soon. In crypto day trading, millennials lead in this area as some have taken it as their full-time or part-time job through yield farming mechanisms.
Why Are Millennials Buying More Coins?
Social factors and technological advancements can lead to decisions made by a whole generation. Cryptocurrencies and other digital assets are best understood by millennials, who make the bulk of the workforce at the moment. The shift from the traditional mode of finance to the blockchain resonates with millennials as they tend to look for more accessible investment alternatives.
Young people find cryptos attractive because they are easier to use and an investment that doesn't require much work with their capital still in their wallet and can be liquidated anytime without hassle.
Over time, it has been proven that people tend to dump the old way of doing things for the newer model, which tends to be more productive. The shift from traditional investment models to the blockchain by millennials and Gen Zs shows that young people are sticking with "the future of money".
Millennials are on top of the crypto trend because of the speed of finance and investment in the present era. As bills and standard of living continue to climb, young people are thinking outside the box to meet up with their expenses. Though cryptocurrencies are risky investments, young people are willing to take the risk because of the wide range of options it brings. DeFi tokens are growing daily, NFTs are undergoing booming growth, play-to-earn platforms are expanding their reach, adding up to the possible options for millennials.
The financial incentives from arbitrage and crypto day trading also encouraged millennials to go into cryptocurrencies. Millennials around the world have quit their old jobs to join the crypto community as yield farmers, day traders, and arbitrageurs. Making pips on the difference between assets in multiple exchanges is a very lucrative way for millennials to earn and lead the financial world.
The adoption of blockchain technology also represents a shift from the old money to the new money, and millennials want to control the assets rather than leave them to a third party or the government. The fair and transparent impact blockchain has on finance is another reason for the growing adoption from millennials.
Though Gen Zs are younger than millennials and should be more on cryptocurrencies, they don't have the economic power to compete with millennials. On the other hand, millennials are the current workforce, so they are the perfect blend of exposure to technology and finance to back their interests.
If Gen Zs have more access to funding like millennials, they will top them on the charts. In addition, the rapid advancement of blockchain and dapps solutions in solving issues in the workplace is another factor that millennials have an advantage of.
The rise of cryptocurrencies this year can be likened to the support it received from Elon Musk. The billionaire has always tweeted about his love for blockchain, bitcoin, and dogecoin. The meme tweets by Elon Musk speak to millennials as they grew with the meme culture. Dogecoin, which started as a joke, soon got the interest of everyone. Millennials rallied around the coin and other meme coins more than any other generation.
The Rest of The Pack
Millennials hold more cryptocurrencies than people in other generations. Though millennials naturally have the advantage because of technology and other social factors, different generations also contribute their share. There are even debates in some quarters regarding how long millennials can remain in control. Let's start with the boomers. Boomers are the oldest generations we'll consider. Born between 1946- 1964, boomers are not the technological favourites to jump on cryptocurrencies.
The general issue around boomers and digital assets are on risk and exposure. Boomers lead the pack in terms of a diversified stock portfolio and other traditional asset classes, so their investment drive isn't in question. However, cryptocurrencies are highly volatile assets compared to stocks. Furthermore, they are not regulated by multiple governments threatening to ban or put severe checks.
Boomers and Gen Xs prefer stability in their choice of investments. In addition to this, the growth of cryptocurrencies has suffered more blows in boomers' hands as they sit on top of most government organizations. They have been vocal about the threat cryptocurrencies pose to the world and their role in encouraging crimes on the dark web. This dark era for boomers and Gen Xs seem to be changing gradually though a lot still needs to be done. The mass adoption of digital tokens has seen increasing numbers of boomers and Gen Xs jump into cryptocurrencies.
This can be influenced by the fact that governments and the United Nations have backed blockchain technology. Different countries have even rolled out or issued templates for their Central Bank Digital Currencies which sends a message that the future of money is digital. In addition, countries like El Salvador backing Bitcoin and huge technological giants will play a role in the future adoption of digital assets.
However, this year has seen increasing adoption of digital assets as the crypto market capitalization surpassed $2 trillion. Institutional investors who were sceptical about investing in cryptos started joining gradually, with the big banks each adding cryptocurrencies as a new asset class to their wealthy clients. As Goldman Sachs, JP Morgan, Morgan Stanley, etc backs cryptocurrencies, other financial institutions follow suit, giving older investors more confidence to invest in cryptocurrencies.
Gen Zs are the closest rivals to Millenials in cryptocurrency investments. Technology is on the part of Gen Zs to take digital investments to the next level. The growth of social media has increased idea sharing and has helped build communities around digital assets. While other generations struggle to keep up to the far-reaching lengths of DeFi, Gen Zs prefer digital investments to traditional forms of money. They see themselves as the ones who will make the change.
The boom in NFTs and the metaverse shows that the future of holding assets and making money is evolving rapidly, much to the delight of Gen Zs. Gen Zs now prefer digital collectibles because they can easily be traded to physical collectibles. The only limitation for Gen Zs is funding. If they had the money the other generations have, they'd be sitting right at the top.
What Does The Future Hold?
The future of digital assets looks good as more people worldwide will continue to try their hands around coins in the coming years. Though millennials lead the pack, Gen Zs will rule in the future. The growing technology behind DeFi is on the part of Gen Zs, and when they gradually have access to more funds, they will get more digital assets. In addition, Gen Zs see cryptocurrencies as an easier form of investment and are likely to invest more in them than in traditional investments.