The London Block exchange recently conducted a study involving 2,000 Britons. The study demonstrated that 5 percent of people under the age of 45 already have cash invested in a cryptocurrency and 11 percent are planning to invest in cryptocurrencies next year. A further 17 percent, are seriously considering investing in a digital currency by the end of 2018. The UK’s Independent reports that the study found a third of millennials will invest in the cryptocurrency market in 2018.
Millennials Prefer Cryptocurrency Investments
BX, UK’s cryptocurrency exchange program believes that millennials prefer cryptocurrency investments because they feel left behind by older forms of investment. The study demonstrates a change in thinking between ‘the younger generation’s view of money and that of their parents and grandparents, who had assets perform so well for them in pensions or property,’ said LBX Founder and chief executive officer Benajmin Dives.
24 percent of millennials under 35 had regretted not investing in cryptocurrencies earlier.
Although this study was conducted in Britain, institutions and individuals have done similar polls and surveys from different geographic locations that reflect similar attitudes. Ron Paul, the former Texas Congressman, conducted a poll where 51 percent of 43,000 social media users preferred bitcoin over gold, US Bonds or the US Dollar.
Another survey recently conducted by Harris Poll involving 2,000 US adults demonstrated that 50% of millennials have a positive outlook on bitcoin. Millennials are also twice as likely to own digital currencies compared to older age groups. Spence Bogart, the managing director with Blockchain capital states that ‘the results of the survey reinforce our conviction in the massive opportunity that lies ahead for Bitcoin.’
Millennials Don’t Trust Traditional Financial Services
Garrick Hileman, a cryptocurrency expert and research fellow at the University of Cambridge believes that “millennials began their income generating years during the fallout from the 2008 financial crisis, and many don’t completely trust traditional financial services or the system in which they operate.” Cryptocurrencies represent an alternative system that can act independently of centralized financial institutions. Digital currencies, therefore, represent great potential and as a result, has managed to overcome the initial stigma surrounding their use with the younger demographic.
The young demographic’s attitudes significantly contrast with the older generation. In the London Block exchange survey, 57 percent of people over 55 stated that they won’t be purchasing digital currencies. In the Harris Poll survey, 92 percent of over 65s believe big banks are more trustworthy than digital currencies.
Investing in Digital Currencies Is Still a Major Gamble
Although a third of millennials will invest in the cryptocurrency market in 2018, economists believe that investing in digital currencies like bitcoin is a major gamble. There are concerns that the value of cryptocurrencies could crash. Laith Khalaf, the senior analyst at Hargreaves Lansdown believes that anyone investing in bitcoin should understand how investing works and what factors drive prices up or down. “They should also be willing to sustain the large losses which could stem from the volatility of the cryptocurrency, and if gaining exposure through a bitcoin product they should make sure they understand the operation and risks of the product itself, as well as the intricacies of bitcoin,” she said.