A recent study conducted by BanklessTimes found that 67 per cent of millennial respondents aged 27-42 considered Bitcoin as a safe haven investment. The survey, released on February 8, showed that millennials trust Bitcoin far more than their Gen X or Baby Boomer counterparts.
BanklessTimes CEO Jonathan Merry pointed to Bitcoin’s decentralized nature as the key selling point for most millennials. As Bitcoin is tied to modern blockchain technology, it doesn’t depend on central banks or governments to determine its value. This makes it a more secure investment in the face of rising geopolitical tension and global uncertainty.
After the turbulence of recent years due to various governmental failures, millennials see Bitcoin’s detachment from traditional banking systems as a boon.
However, as a relatively recent financial asset, Bitcoin has yet to find ground with older generations like the Baby Boomers. The study showed that older generations preferred traditional investments like gold to cryptocurrency, stating crypto’s volatility as its main weakness.
The rise of Bitcoin’s popularity among millennials comes despite its current downturn, caused by the collapse of several important crypto institutions like FTX. Youthful optimism for the coin suggests a greater push for transitioning currency into the digital era.
Challenges in path to mainstream adoption
According to BanklessTimes’ study, many millennial investors see cryptocurrency as the future of banking. However, the study notes that there are still many challenges it needs to face before it becomes mainstream.
Bitcoin still experiences volatile highs and lows in value. This volatility makes it difficult for many to keep it as a stable, long-term investment. It is also why many nations have yet to accept it as an alternative to fiat currencies.
Furthermore, recent controversies surrounding major crypto institutions collapsing have also highlighted a lack of regulation or customer protection. FTX’s financial mismanagement is the latest example of how fragile and easily manipulated the current market can be.
While these issues are still a hot topic, many young people still believe in the power of Bitcoin and the blockchain. Further developments may help ease these issues and push the global financial system into a digital future.