The term ‘millennial’ has come to define someone born in or after the year 2000, synchronous with that of the quantum leap in technological advancement that represents all social interaction today. With rapid technological advances, a part of our time and lives has come to inhabit the virtual realm, where the guiding principle is universal accessibility.
Millennials, therefore, are accustomed to and dependent on facilities that are quick and easily accessible. Online banking, instantaneous communication across continents, high-speed multitasking – these are familiar to the millennial. 2010 saw several governments in the global south experimenting with currency modifications, and very soon afterward, an entirely new form of currency was launched, called cryptocurrency.
Despite initial skepticism, it soon became apparent that cryptocurrency was outperforming in the market in successive years, from 2009 till 2021, with the only exception being in 2018. In 2021, for example, compared to returns of 15.3% for gold, Bitcoin (the most popular cryptocurrency) has grown by 467%. Ethereum, the second most popular cryptocurrency, has increased by 1000% in 2021.
What Are The Listings?
The standard savings protocols at banks offer at most an interest rate of 7%. This is not sufficient if we keep in mind that inflation is happening too, and this increment will not suffice to cover even that. In comparison, Reliance Industries Limited stocks have a return of around 30% in 2020-2021. But the astronomically high returns offered by Bitcoin and other cryptocurrencies are lucrative, even in the short run.
Bitcoin is secure – through the novel Software The principle is simple: if one member of the blockchain suffers, every single member of that chain suffers. So, collective desire for profit is weaponized into making a blockchain and stable market. As a result, the collective willingness to profit ensures that each participant in the blockchain prospers.
How Have the Millennials Benefitted from This Association?
Millennials benefit significantly from having Bitcoin investments as part of their retirement benefit profile for a generation unlikely to have access to state-assured retirement benefits. Data across the board suggests that a profile shows 40% investment in Bonds, 59% investment in stocks, and 1% investment in Bitcoin shows high promise for outperforming the market, mitigating any effects of volatility and loss, and in the long run adding significant value and diversity to the portfolio. As any investor knows, diversifying is one of the watchwords to portfolio-building and wealth-building.
The very nature of the millennial shows high demand, willingness to take risks, and who can afford the time to develop a versatile investment profile. As such, this fits in perfectly with the high-risk-high returns profile of Bitcoin.
Millennials have a risk appetite, more than other sectors of the population. As such, the raging worldwide pandemic in 2020-2021 has dramatically boosted the millennial desire for risk, which is a welcome sign for investing in Bitcoin. Depending on the current nature of the market, this may well be an excellent time to begin investing in Bitcoin.
Investment is traditionally made in physical or other material assets like stocks and bonds. However, the existence of assets whose performance does not depend on the performance of physical assets like gold and additional material assets is a boon. Bitcoin is one such alternative investment option, dealing with such non-correlated assets.
In almost all countries, the public has been invited to invest in the Bitcoin market through several public cryptocurrency exchanges, with governmental intervention and oversight to ensure no wrongdoing on these platforms.
Ease of accessibility, ease of investing, security – these are the three most important parameters that must be kept in mind before a customer invests in the market. A recent survey states that of millennials surveyed between 18 and 30, 15% were more likely to invest in Bitcoin over ten years than their older counterparts.