Cryptocurrency is still making headlines. There is a lot of excitement around digital investments, from it being labeled the next gold rush of the financial world to abrupt booms and price collapses. (Crypto News)
The value and future of NFTs and crypto appear to be a daily topic of discussion. However, one recurring Storey regarding cryptocurrency is that Gen Z and Millennials are enthralled by the prospect of investing in it. “Gen Z and young millennial investors” are “bullish on bitcoin and the technology that surrounds it, “Millennials’ love affair with crypto is burning red-hot right now.
There are a lot of intriguing factors that has built up the interest of the modern generation in digital assets:
Becoming financially self-sufficient
One of the distinguishing qualities between an adult and a child is the absence of parental financial assistance. It’s not easy to live paycheck to paycheck, as many millennials do. However, rather than being fueled by frugality, obtaining independence should be driven by income. While it’s never a good idea to overspend, cutting back on your Starbucks consumption isn’t either. So, Gen Y is opting out of smart income options that help them become financially independent and earn more and more with each passing day.
Returns are high and fast
Millennials are an aspirational generation. They are looking for investments that would give high profits in a short period of time. Cryptocurrency is an exception to the rule of few assets that offer high profits quickly.
Since its introduction in 2009, Bitcoin has increased in value and surpassed gold as the most valuable asset class. All these features are the magnets for the Gen Y generation. Who are continuously looking up for ways that give quick and hefty investment options.
Following the trend
While traditional investments feel inaccessible to the next generation of investors, many are finding a sense of community in alternatives like cryptocurrency and meme stocks. For some, the community aspect is at the core of their motivation to invest. So, Gen Y is very much attracted to trends that their community follows and reacts in an exciting way. So, people herding towards crypto assets also dings to how their community is behaving towards that particular aspect.
Starting Early and In different ways
Given that most investors are 28 years old on average, trends imply that millennials believe in getting started early. More than a third of investors, with the second most prevalent category being those between the ages of 18-25. Even when it comes to popular retirement savings choices like NP, there are a few things to keep in mind. Investing in growth-oriented, high-risk investment avenues can be afforded. “When young, risk tolerance is high, and there is a good time horizon to plan investments. So, a young generation is intrigued to invest in those asset classes like Equity and alternatives.
The increased role of technology in recent years
The technology boom has been a positive ally, With information being so readily available and at the fingertips of millennials and Gen-Z, it is no wonder that investment opportunities are not a foreign concept to them. While earlier generations believed in the traditional way of making money, mostly through securing a long-term and stable job, those that had knowledge of investment opportunities
It’s tough for young people whose careers coincided with this trend to make up for lost wages during the early, slow years. When subsequent raises are lower, the effect of initially low wages is compounded, and people are less able to save and invest in ways that will give income in the future.