Millennials, usually categorized as anyone born between 1981 and 1996, are sticking to cryptocurrency and continuing to stay turn away from traditional investing.
Why Millennials like Cryptocurrencies
Millennials are the first generation to grow up in a digital age. Millennials order their food online, their taxi’s, connect with their friends, maintain their business networks and get their entertainment online. This desire for the digital makes cryptocurrencies an attractive choice for millennials.
Cryptocurrencies are an exciting new technology, but they are also somewhat risky and volatile. This means that it’s an attractive choice for young people testing the waters, wanting to see where it can lead. People who are older and are settled down with a mortgage and children are less likely to want to partake in risky behavior because negative results will be further reaching for them.
Millennials also mistrust financial institutions. According to a 2016 LinkedIn research study, 71% of millennials would rather see a dentist than listen to what a bank has to say. 68% also believe that in the future money will be accessed in a different way than it is currently. This suggests that it’s not just the mistrust that is turning millennials away, but also the hope for a better way of doing things. For many millennials, Cryptocurrency offers this hope.
What Does the Future Look Like?
Around 25% of millennials recently surveyed said they are using cryptocurrency, and 30% said they want to learn more about it. A survey conducted by YouGov, with 1200 participants, found that 48% of American millennials are interested in converting to cryptocurrency over the US dollar, compared with 36% for all of the respondents. The question was aimed at people who believe cryptocurrency will become widely accepted.
We can assume with some confidence that Generation Z, the generation after millennials, will follow this trend since they too have grown up in a digital age. These generations will likely drive the move to cryptocurrencies and away from traditional banks. If traditional banks want to survive, they will have to adapt their strategies to make them more appealing to the economically active generations who distrust them, or they could see themselves left behind.
Many banks are already making this move towards a crypto future. JP Morgan, HSBC and several huge Chinese banks already have blockchain technology up and running. It doesn’t look like this trend is going to reverse so banks need to adapt to survive to this new demand for digital currency or become fossils of financial institutions from a time gone by.