Why Young People Have Faith in Bitcoin
Bitcoin is undoubtedly a highly volatile digital currency. However, this trait doesn’t scare or put off Millennials that want to invest in innovative technologies. Most Bitcoin investors are young people, with almost half of millennial traders admitting that they trust crypto exchanges more than the stock market.
While the global human population debate about crypto as a future investment or just a fad, young people rush to purchase and own this virtual currency. Today, platforms like the bitcoin prime have many young people with accounts and actively trading this virtual currency. And this shows that more young people are trading Bitcoin to earn money. But why is Bitcoin appealing to young people? Why do they have faith in this virtual currency? Here are possible explanations for this trend.
Young People are Tech-Savvy
Most young people might not have enjoyed living in an economically stable environment. However, Millennials grew up with computers, the internet, and now smartphones. While this doesn’t mean that the older generation doesn’t know much about computers and the internet, young people are technologically literate. But the young and the old have different outlooks for the digital world.
Older people don’t trust technologies like digital currencies. That’s because they grew up in a different world. While Millenials are quick to embrace Bitcoin and its technology, older people are skeptical about it. Since young people live in and believe in a digital world, they have more faith in Bitcoin because it’s electronic and ideal for the current world.
Bitcoin Is Social
Most young people use social media because they believe in interacting online via these platforms. Bitcoin uses peer-to-peer technology. Essentially, people transfer funds in the Bitcoin network without involving intermediaries like banks. Therefore, many young people see Bitcoin as a social innovation. They believe that this cryptocurrency represents a new model that will revolutionize how humans do business and share value online.
Bitcoin uses computer networks to establish and maintain valuable, shared data. Blockchain technology records transaction data in a public ledger that all users can access. What’s more, people can’t interfere with the data, thereby preventing counterfeiting. With such a system, people can transfer funds or value without a trusted authority like a bank. Essentially, most young people consider Bitcoin a social innovation that will transform businesses or how people share value.
Young People Are Risk Takers
As hinted, Bitcoin is undoubtedly a highly volatile digital asset. That means market value swings can lead to significant losses when trading this cryptocurrency. But this trait doesn’t deter young people from trading or investing in this virtual currency. That’s because young people’s behavioral psychology makes them risk-takers.
In every generation, the desire to take risks reduces as people age. Therefore, age is a primary reason why many crypto traders and investors are relatively young people. What’s more, some young people think Bitcoin trading and investing could be a way to make a decent income down the road. Therefore, they don’t want to miss out when their friends invest in this virtual currency.
Young People Understand Economic Instability
The first Millenials were born in the 1980s. Since then, the world has experienced several financial crises. For instance, these people experienced the stock market crash in 1987, the financial crisis in 1997, and the financial contagion in Eastern Asia. The housing bubble burst also occurred during the era of the Millenials. That means these people grew up surrounded by economic recessions and crises. Consequently, they understand economic instability and are ready to do anything that will ensure their financial stability.
What’s more, their understanding of economic instability has reduced faith in centralized institutions like the government and banking systems. Therefore, these people are willing to try something different like Bitcoin.
Young people are more tech-savvy compared to their parents. What’s more, they are more risk-takers and interested in something different. That’s why they have more faith and interest in Bitcoin than people in the older generation.