Cryptocurrency Popular with Millennials
Out with the Old, in with the New What Makes Cryptocurrency So Popular with Millennials
Companies are constantly trying to come up with ways to attract “millennials” to their products. This word is a term that represents the younger population, and is most often associated with words like “tech-savvy” and “risk-takers”. This can explain why a popular new form of currency has taken the world by storm. Since its initial debut over just ten years ago, digital currency has changed from something only discussed in the shadows of the internet to now being a globally recognized and valid form of payment option. Blockchain technology helps users globally be able to send and receive the cryptocurrency.
- High Risk, High Reward
Many millennials are now including cryptocurrency as part of their retirement plans. Consider the most well-known cryptocurrency today, Bitcoin. Bitcoin was first launched in 2008. Back then it was worth less than a penny. Almost three years later, that price climbed to $1. In November 2021, its price breached the $68,000 mark. Though this isn’t typical for all of the cryptocurrency in circulation, young people don’t mind taking a chance. Many millennials feel that they have time to recoup their losses if they find they’ve made a bad investment, making it easy for them to choose this option. Older people who lived through recessions like the Great Depression are naturally more likely to hold onto their money. Meanwhile millennials, who likely haven’t lived through economic ruin, aren’t plagued by fear of holding onto their money without any return.
- Decentralized Finance
Decentralization is the core principle of cryptocurrency. Until 1933, U.S. citizens carried actual gold coins in their pockets, and paper bills were able to be exchanged for the physical currency at any bank. The value of the dollar was stable. Then, in 1933, the currency many citizens worked so hard to obtain, gold, was just confiscated by the government. This caused the U.S. dollar to devalue by 41%, and the treasury attempted to hold the value of the dollar at 1/35 of an ounce of gold. Overall, from 1900 to 2010, the dollar fell from 1500 mg to 25 mg, losing over 98% of its purchasing power. Because cryptocurrency is decentralized, this allows more freedom than ever before. The absence of a centralized authority essentially means that no entity can control or monitor financial transactions. Millennials now have access to a financial system without facing any of the discrimination and manipulation tactics that runs rampant in traditional systems. Being able to see the effects of the dollar’s value over time, also helped push millennials to be more receptive to using an alternative form of currency. The supply of Bitcoin is capped at just under 21 million coins, while central-bank-controlled currencies can be printed at the will of politicians.
- Immediate Gratification
Unlike older generations, millennials have grown up with technology and have no strong fears surrounding it. Phones, computers, and all things digital have been embedded in their lives for as long as they can remember. Almost 90% of millennials and Gen Z use social media daily. The new age digital platform allows for instantaneous communication and access. Though virtual, people expect that immediate results to also translate to important aspects of their lives. Deciding to invest in cryptocurrency is just another digital activity that is no different than the other virtual activities they participate in. Because something is always happening in cryptocurrency, users can check the price 10 times a day, and they’ll get 10 varying prices. It has the potential to keep users engaged and thrilled, similar to gambling or checking their social media activities.
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