Debates about money and investments are something we engage in from time to time. Motivated by the need to secure our future, we pursue financial stability. In this regard, increased earnings, whether as a result of a promotion or investments and savings, seems our best bet to achieve this.
Well, cryptocurrencies have existed for over a decade, and increased adoption and price surges make them a widely discussed and intriguing subject. The concept of money has changed with people recognising cryptocurrencies as not only an investment or saving alternative but much more.
Of course, when asked who the major crypto investors are, our mind immediately sails to the youths. However, our assumption is valid, as research shows that persons within 18-40 make the largest percentage (94%) of crypto investors. Millennials (Gen Y) aged 25-40 and Gen Zs aged 10-24 are at the forefront of these revolutionary changes as the most technologically receptive of all generations.
Several millennials and Gen Zs have quit their jobs to become full-time crypto traders. Some have invested their entire earnings in crypto, while others have taken to save their funds in crypto, abandoning their local currency. Today, we’ll be reviewing what cryptocurrencies mean to millennials and Gen Zs, why they have chosen to invest in cryptocurrency, and what this means for the financial ecosystem.
Why millennials and Gen Zs have turned to crypto?
There are numerous benefits of cryptocurrencies such as low-cost international and local transactions, quick and easy transactions, a better saving alternative, and a passive income. Apart from these popular reasons, there are several other reasons why millennials and Gen Zs have embraced crypto.
Millennials and Gen Zs grew up as the true digital natives, growing up with virtual games, the internet, and social media; it is no surprise that they are more appreciative of cryptocurrencies.
Millennials and Gen Zs, in particular, are risk-takers because they have more information (internet) at their fingertips to make informed decisions. They are also still a long way from retirement, so they can afford to take some risks. Simultaneously, inspired by the recent pandemic, Covid 19, which resulted in the loss of several people’s jobs, compels them to seek other sources of income, which may have led them to crypto. They believe that investing in crypto can help them get rich and secure their future.
Likewise, they have observed the flaws and limitations of traditional finance structures and are eager to create one that fits their interests and gives them a voice. For instance in Nigeria, the government froze the funds used to fund a peaceful project(ENDSARS). This act shook Nigerian millennials and Gen Zs as they had no control or say on this. However, they had the option to shift to a more trustworthy financial platform, cryptocurrency, where they had control, transparency, and no fraudulent operations.
In today’s fast-paced world, Millennials and Z are looking for a means to generate money and save money without putting too much stress on themselves. Cryptocurrency education is widely available on social media platforms where they frequently connect. They can easily buy crypto, hodl, and profit even if they have no experience. They can simply save money to keep up with inflation. For Millennials, cryptocurrency is not just a payment option; it’s a community where they belong and can share ideas; it’s a lifestyle.
Furthermore, unlike stocks, which take years to manage, they can earn much money from crypto trading and get rich in months. It is a community where they own their voice, and archaic systems do not dominate them. As Covid 19 may have proved education, and 9-to-5 jobs are no longer sufficient, cryptocurrencies offer an impressive alternative.
What cryptocurrencies mean to the Gen Zs and millennials
A saving alternative: According to a recent survey, more than a third of millennials and half of Generation Z would prefer receiving 50% of their salary in Bitcoin or other cryptocurrencies. Millennials and Generation Z have seen the value of their local currencies decline due to inflation with bank interest rates that are next to nothing. This has made cryptocurrencies a preferable saving option. They can easily save their assets with cryptocurrencies and profit from the volatility. Stablecoins such as tether provides a better alternative to saving without inflation.
Earning alternative: According to the most recent CNBC Millionaire Survey, 83 percent of millennial millionaires possess cryptocurrencies and want to purchase more in the coming year. More than half of those investors have at least half of their assets in crypto, and over a third have at least 75% of their total investments in blockchain-based assets. For Millennials, cryptocurrencies have provided a source of income through crypto trading.
Easy and effortless to use: Cryptocurrencies are easy, quick, and inexpensive. This is an excellent option for millennials and Generation Z international students, traders, and those wishing to send money home. They don’t have to wait days to accomplish cross-border transactions, and they can do it without filling out a lot of paperwork.
“You can get started, run your account, and start trading in less than 10 minutes. It’s the same thing with several other apps like that. So, they make it easier for you. And again, especially for cryptocurrencies, you can easily transact, you can easily make transactions overseas. So instead of having to go to the bank, and then queuing, they say maybe you want a domiciliary account, instead of all that, just get a crypto-exchange, open it, start using USDT and you can send money anywhere.”
Gen Z crypto investor (Source: Africanews).
A long-time investment: According to a recent survey conducted by Capitalize, an IRA rollover service, 56 percent of Gen Z adults (18+) and 54 percent of millennials believe bitcoin or non-traditional assets are part of their retirement strategy. Pensions are no longer sufficient for Gen Z and millennials. This is because the pension is in local currency, which may have lost value due to inflation. On the other hand, crypto is a long-term investment that has paid off several investors over time. By purchasing digital assets, they can easily set aside funds for retirement. At the same time, they can invest in digital assets while being assured that their funds will have risen by the time they retire.
Cryptocurrencies have modified how Gen Zs and Millennials consider money and investments. It has become a tool for them to achieve their financial goals while being assured of the security of their funds. The crypto ecosystem has grown in response to the rising adoption of crypto by millennials and Gen Zs. Now, even central authorities worldwide are exploring solutions to maximise their benefits while minimising the risks. Cryptocurrencies have enormous promise and can help traditional banking financial systems overcome their limitations.
On the other hand, scammers have turned to crypto schemes to defraud individuals of their money. Millennials and Gen Zs, however, can readily access trusted and secure crypto services thanks to trusted crypto exchanges like Yellow Card, which operates in over 13 African nations. In addition, they can access a detailed, easy-to-understand guide about cryptocurrency, blockchain, and other financial literacy topics through Yellow Card Academy.
Don’t get left behind! Hop aboard the crypto train!