Bitcoin remains a safe haven for millennials to invest their money, and has been for the past couple of years despite the market downturn. But why, exactly, is that the case?
Bitcoin, the largest cryptocurrency, is seen as a hedge against inflation and a store of value. With central banks worldwide printing money to stimulate their economies, many investors across different age cohorts fear the devaluation of fiat currency. Bitcoin’s fixed supply of 21 million coins and decentralized nature makes it an attractive alternative to traditional currency.
The COVID-19 pandemic has also played a role in the increased interest in Bitcoin. With the turmoil of stock markets and the global economy, investors are turning to Bitcoin as a safe haven investment.
The Growth of Affection Toward Crypto
The value of Bitcoin has fluctuated wildly, reaching more than $60,000 in 2021 to trading at around $22,000 at press time. Despite concerns over fraud and scams, investors, especially millennials, are willing to take the risk and view Bitcoin as a viable investment option. And as the cryptocurrency market grows and matures, more enthusiasts are jumping on the Bitcoin bandwagon.
According to a BanklessTimes.com report, millennials are more likely to take a risk when it comes to investments, with 67% viewing Bitcoin as a safe haven.
Most millennials that participated in the survey believe bitcoin will go mainstream in the following years. They also see it as a better monetary tool than the dollar, euro, or other fiat currency.
For instance, in 2021, nearly 50% of millennials, those aged between 25 and 40, were comfortable with crypto investments. Last year also saw a similar narrative as the cohort chose cryptos and Bitcoin in their retirement plans.
This is contrary to the belief of most people, particularly GenX and Baby Boomers, who are more skeptical about Bitcoin and its potential for success.
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