Do Millennials Actually Like Bitcoin?

Do Millennials Actually Like Bitcoin?

Despite early research suggesting that it would millennials and affluent people that would be the most likely to use digital currencies like Bitcoin, this could no longer be the case. Previous research even went as far to say that these groups were in fact the driving force behind the mainstream adoption of the digital currency in the future, but newer research and figures suggest something different. Vlad Tenev, the co-founder of popular stock trading app Robinhood, has spoken against Bitcoin being the preferred investment opportunity for young adults, and instead expects equities and stocks to instead stay in favour. This is backed up by the fact that stocks are at a record high. But, still despite this, the growth of Bitcoin and other cryptocurrencies is far greater, which could back up the previous claims and suggest that the new technology that is cryptocurrency seems to be geared towards the generation that is at the cutting edge of investment. 

Stocks and Equities:

Vlad Tenev is still not convinced and believes that conventional investments will win in the long run. Speaking on the matter, he said; “I wouldn’t say that we’re anticipating a massive shift from stocks to cryptocurrencies. We don’t see the equities market going away anytime soon.” He acknowledges that the growth might well be higher in cryptocurrencies, but there is something underlying that people do not trust about Bitcoin and other coins, which makes people wary. It has struggled to be adopted by retailers, and even as an investment opportunity in the long run. The increased rise could just be because they are newer than more traditional means, and although the talk of investing in digital currencies and the transformative force of Blockchain has grown, people are still turning to more conventional investments and technologies, which are winning in the short-term.  

Goes against existing research:

Tenev’s view is very different to what was expected from 18-35-year olds, which cater for more than 78 percent of RobinHoods customers. The original statements could be based on the fact that there is a distinct distrust in banks, and therefore also of traditional investment models, such as stocks, which is why it was only natural to assume that Millennials would turn to Bitcoin and other cryptocurrencies as investment needs. A survey that was carried out by Bankrate in July, found that 13 percent of younger investors like stocks, while real estate and cash were tied first place among millennial investors at 30 percent each. LendEDU carried out a completely separate poll in August, and found that more than a third of US investors in the US that were aged between 18 and 34, said that they planned to invest in Bitcoins.

Why are millennials hesitant about Bitcoin?  

With any new technologies, considerations need to be made, particularly if they are a high-risk investment which Bitcoin is, and younger people are very aware of these risks. If they plan to invest in this new technology, they need to be sure what they are getting. Adam White, head of Coinbase’s GDAX exchange said that; “Everyone should have a bit of exposure to digital currencies because [it] looks like [the] future…There is still a very real chance [the digital currencies] could fall all the way to zero” His final bit of advice applies to both stocks and cryptocurrencies, and stated; “Never invest in what you don’t understand, and never invest more than you can afford to lose.”

References and Further Reading:

  • The CoinTelegraph; Are Millennials All That Keen On Bitcoin?
  • Forbes; Meet the millennials saving for retirement using Bitcoin
  • The CoinTelegraph; Why millennials keep Bitcoin for rainy days
  • CoinDesk; Report: Millennials and the wealthy most likely to use Bitcoin
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