February 10, 2021

Why Do Millennials Prefer Bitcoin?

\ Introduction

The price of bitcoin has skyrocketed at the beginning of the year. Hashcash has once again become one of the most profitable investment assets in 2021. Despite the progress made, many fail to take it seriously. No wonder since people used to think that only the central government body could create money. Borders and geography determined its cost and imposed certain restrictions. This belief has stuck with them throughout the decades. But things are different now, for all of us. The younger generation becomes skeptical about the present-day economy. That's why they are open to financial technologies. Will BTC make paper money a museum piece for millennials in the future? Let's figure it out.

The Shortcomings of the Traditional Financial System

The conflict between crypto lovers and representatives of the banking system began a long time ago. Bad press further aggravates the situation. 

"Bitcoin is a hoax, a mass hallucination”, “Figures in cyberspace that are backed by nothing”, "The bubble is about to burst"... Such statements can be seen quite often. 

The high volatility of the coin with a stellar reputation is to blame. The price of BTC can reach $50.000 level today, and fall twice the very next day. Nevertheless, all this doesn’t turn the brainchild of Satoshi Nakamoto into something terrible. This is rather a feature of the digital currency sphere.

When it comes to generation Y, its members look with favor on the idea behind decentralized superorganism. Fair enough. They obviously had no time to get used to the banks. Unfortunately, the same cannot be said about their parents. In addition, young people remember the financial crisis of 2007-2008 vividly and are not happy with things that are going on in the economy. You know, on second thought, what should they actually be happy with? For years, the world’s central banks have been pursuing a policy of cheap money.  They continue to flood us with euros and dollars. Our savings lose purchasing power. We don’t know what you think, but for us, that version is a loser. We can't go on living like this. There must be a way. There is a way.

Bitcoin To the Rescue, As Always

Cryptocurrency can be the solution to the problems that we face:

  • First and foremost, the emission of magic internet money is limited (21,000,000). It cannot be forged or printed at will. BTC is deflationary by nature. 
  • Second, "Big Brother" will no longer be able to watch every step of yours. Conducting transactions with virtual coins, the user eliminates the need for third parties in the form of financial institutions. All personal information remains safe. A low or zero commission comes as a nice bonus. 
  • But the real pony here is the underlying technology. Blockchain goes hand in hand with anonymity, security, and transparency of the system. That's what attracts millennials.

Those who are hesitant to step into the crypto world explain that the virtual currency is not backed by anything, there is also a solution. We are talking about stablecoins. They are pledged by fiat money, real or digital assets. That made them protected from violent swings in price. Even biggies like VISA and MasterCard give stablecoins a try. We have talked about this in the previous article, remember?

Bottom Line

The grand takeaway here? Bitcoin can become a crucial part of our everyday life, changing the usual order of things. The fact that gen Y is investing in it gives everyone else a pretty good reason to pay attention to crypto. Even if today bank officers believe it's the money of criminals and do-nothings there is no guarantee that millennials will think the same way. That's the best thing about this whole situation. Remember: bitcoin is only risky to those who don’t understand it.