As the hype surrounding cryptocurrency continues to explode, virtual coins are garnering a new legion of supporters — millennials. A new report suggests that over 30 percent of young people are investing in crypto and trying to bridge the alleged wealth gap between themselves and older generations.
Released by Blockchain Capital, the report in question alleged nearly one-third of those aged 18 to 34 would rather purchase bitcoin over government bonds, stocks, and even gold. Data also suggested that over 40 percent of millennials have heard of cryptocurrency – a solid difference between the 15 percent of those aged 65 and up.
These numbers are slated to grow by the end of 2018. New reports have suggested that one in every three millennials will own cryptocurrency by late December.
But for millennials, bitcoin and the technology behind cryptocurrency don’t just represent an opportunity for wealth – they represent a solid future and a stable job market.
Following the “Great Recession” of the late ’00s and early ’10s, college grads’ biggest complaint was that it was difficult to find long-term employment and stable income, and a handful of millennials are now looking at alternative routes of finding a job.
One of those routes involves cryptocurrency, and several young people have already made their names and staked futures for themselves with digital currency.
Mel Gelderman and David Hoggard, for example, are two 20-something entrepreneurs. As the founders of TokenCard in the U.K., the pair managed to raise over $16 million last December during an ICO (initial coin offering) crowd-sale, and according to Hoggard, the time for young people to get involved in blockchain technology is now:
“The barriers to entry are quite low. For people looking to do something interesting with their lives, blockchain is such a staggering opportunity.”
But millennials are urged to educate themselves before making any sudden moves. Ex-hedge fund trader and co-founder of CoinFi Timothy Tam suggested that as new investors, young people are prone to certain mistakes, and he has some advice for millennials looking to get their hands on crypto.
“You should always keep in mind the price correlation between bitcoin and most altcoins to account for volatile market conditions,” he explained. “What we noticed at CoinFi is that bitcoin and several other coins have an inverse relationship in their value. Once there’s a dip in the bitcoin price, everyone rushes into buying other coins and vice versa. This volatility can cause serious losses for inexperienced investors.”
Tam also informed millennials to be careful of the “bots”, which can have serious repercussions on one’s initial investments; to allocate their “assets based on risk tolerance” (in other words, know when and where to stop), and avoid over-trading to ensure they’re safe granted they endure a sudden financial loss.
Tam said he’s confident the sudden demand amongst young people will push crypto prices even higher in the coming months:
“There’s a limited supply [of coins] because aside from the fact that there will only ever be 21 million bitcoins in circulation, most of the holders of bitcoin are long-term holders. The demand, on the other hand, just keeps soaring.”
Will millennials’ love of bitcoin take the currency to new heights? Post your comments below.
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