In the classification of generations, millennial sits at the top. This is a category defined by the generation achieving adulthood in the 21st century. The generation is smart, savvy, and, more importantly, has all the information and gadgets at the disposal to work things out more effectively and efficiently. The influence of Information Technology (IT) is visible on each and every aspect of their lives, including the investment decisions they make, keeping in mind their future needs and requirements.
Unlike the conventional practices of having a fixed deposit in a bank, recent research conducted by Charles Schwab Corporation on the investment and retirement plans throws some interesting details about the investment habits of a range of people, including millennials. The research concluded that young people belonging to the millennial generation are far more interested in investing in Bitcoin rather than buying the stocks of much-celebrated companies like Netflix, Microsoft, Amazon, etc.
The finding is not surprising as Bitcoin and other cryptocurrencies are climbing up the popularity ladder for quite some time in all industries, including crypto games. The distinctive characteristics of digital coins such as high safety, security, convenience, and speedy transactions are something that millennial can easily correlate them with.
The popularity of Bitcoin can also be attributed to the fact that the young generation is quite aware of the digital space, and anything popping up here is sure to catch their fancy. Bitcoin has undoubtedly revolutionized the concept of digital money, and its popularity rose in December 2017 when its value swelled to around $20,000. In the following years, Bitcoin continues to remain volatile in terms of its market valuation, but the high familiarity factor made sure that the coin gets adequate attention from young investors.
According to the online survey by The Harris Poll conducted on a sample size of 2029 American adults in April earlier this year, the awareness and familiarity of Bitcoin rose significantly among the sample respondents in spite of the Bear phase that crypto market is going through. Compared to the 77% of respondents who were aware of Bitcoin in October 2017, the percentage rose to 89% in April 2019. Respondents who claimed to be familiar with Bitcoin got a healthy percentage boost from 30% to 43% in the same period between 2017 and 2019.
One of the major reasons behind the popularity of Bitcoin among millennials is their positive predisposition towards the largest digital coin by market capitalization. 43% of people believed that Bitcoin marks a significantly positive innovation in the financial technology domain, and among the young population, this percentage is even higher and rated at 59%. This positive perception of Bitcoin really bodes well for the future of the whole cryptocurrency and blockchain domain.
It is even more interesting that 33% of people believed that Bitcoin would become a mainstay of financial transactions in the next ten years. In terms of demographics, 48% of respondents belonging to the age of 18-34 expressed positive sentiments about Bitcoin adoption in the future.
The inclination to purchase Bitcoin in the next five years is also found to be highest among the younger population, with 42% expressing their readiness in terms of “Likely” and “Somewhat Likely” to purchase Bitcoin. Out of the total respondents surveyed during the research, 9% were found to own Bitcoin with the highest 18% belonging to the age category of 18-34, followed by 12% relating to the 35-44 age group.
In sum, it can be safely concluded that knowledge, awareness, perception, and ownership of Bitcoin is highest among the young population. Millennials are the flag bearer of digital coins and leading the adoption of cryptocurrency from the front. Their exposure to information technology and access to the latest devices are some of the facilitating factors which are helping them to stay updated with new inventions in the technology space including Bitcoin and blockchain technology. The positive attitude that millennials have towards Bitcoin can enhance its adoption in the coming years significantly. This will also lead to new developments in the crypto sphere and could also push governments and other regulatory agencies to adopt a more positive and open attitude towards digital money.