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Millennials favor crypto assets as demographic tide turns

The demographic tide is turning. Millennials are increasingly turning away from traditional investments towards Bitcoin and crypto assets.

Recent surveys conducted by social trading platform eToro confirm that younger investors are becoming more comfortable with crypto as a potential investment class.

Millennials have less disposable income, less real wages, and they face much higher living expenses, housing, and education costs when compared to their parents. As a result they have less faith in the status quo, and are less likely to trust banks, big business and advertising.

Despite the threat of hacks, scams and volatility, Millennial online traders are already more likely to trust crypto exchanges over the U.S. stock market, and are more likely to turn towards Bitcoin during a recession. If a recession does loom into view, according to eToro, 40% of millennials said that they would prefer to invest in crypto assets. 50% of Gen Z said they would choose real estate, while 38% of Gen X would hedge with commodities.

A survey of 1,000 online traders based in the U.S. found that 43 percent of Millennial online traders trust crypto exchanges more than U.S. stock exchanges. The same survey found that 77 percent of Gen X respondents trust stock exchanges more.

Guy Hirsch, Managing Director of eToro U.S. said, "We’re seeing the beginning of a generational shift in trust from traditional stock exchanges to crypto exchanges. At the heart of this change are the asset classes themselves. Younger investors have seen the fall of Lehman Brothers and the worst recession since the Great Depression. Americans saw that hundreds of billions of dollars of taxpayer money is funneled to the largest financial institutions and how banks get free money through quantitative easing while their cost of living continued to rise. As more investors become educated on the benefits of blockchain we’ll continue to see this trend play out."

However, in the spirit of the typical Millennial’s tendency to lean towards cynicism, let’s not put too much stock in a survey of just 1000 people commissioned by a crypto exchange that has an incentive to spin the results.

Instead, let’s consider that millennials (born 1981 – 2000), are the largest and fastest growing demographic in the world. As baby boomers continue to retire and die off, the world is tipping towards Millennials. Total disposable millennial income is expected to supersede all other generations by 2029.

As Adamant Research pointed out in its Bitcoin In Heavy Accumulation report, “Having grown up with peer-to-peer protocols like BitTorrent, and running open source code like Linux, millennials are very open to cryptocurrencies. A survey from 2013 suggests that Bitcoin’s early adopters (and likely whales) were mostly male millennials. Also in the current landscape, surveys suggest that the majority of Bitcoin buyers are also millennials, with mistrust of governments and growth outlook as the main motivations to buy. As the disposable income of Millennials continues to grow, we expect further tailwinds in terms of Bitcoin adoption and price appreciation.”

Following Millennials come Gen Z and Generation Alpha who are growing up completely immersed in digital worlds such as World of Warcraft and Fortnite. They are the first true digital natives and they have not known a world without Bitcoin, blockchain and virtual goods. In the decades ahead, the intersection of virtual reality, gaming and blockchain is likely to take crypto assets to places we can only dream of. Buckle up.


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