The internet-based medium of exchange, cryptocurrency, uses cryptographic functions to perform financial transactions. In recent years, it has become one of the most popular currencies around the world, especially for young people.
Many kinds of research have been done, most of them showing that young people are more interested in working with cryptocurrencies. Calling it a ‘Cryptocurrency Revolution’, research published in September of 2019 showed that young adults are the ‘driving force’ for the development of the currency.
The survey, done between August 14 and 19 of 2019, questioned members of Millennials and Gen Zers who had some information or knowledge on cryptocurrencies. As it showed, most of them, 98.4 percent were familiar with Bitcoin, 77.7 percent with Ethereum, 71.6 with Litecoin and 47.6 percent with Ripple.
The research went as far as claiming that surprisingly, 21 percent of the respondents did not even have access to traditional banking, which makes cryptocurrency a more likely and popular alternative to traditional banking among young adults.
The reasons for such a huge popularity of crypto among young people can vary from technological advancements that came with this century, to lack of faith in existing traditional banking systems.
Although it is related to many risks, the main interest from the younger generation might come from its independence and opposition to the traditional, old order of the world of finance.
Having invested in Bitcoin in 2017, one could have had several times more money at the end of the year, making crypto not only an interesting technological challenge for curious young adults but also a profitable opportunity. Which, once again, stands independent from the traditional banking system.
One additional thing is its privacy. For example, a specific person owning a Bitcoin can maintain full anonymity. No one can know that they are interested in cryptocurrency or making money on it.
Transactions are confidential and no government representatives can access them, therefore one can get millions out of it while keeping the information for themselves.
Crypto can be used as a very good investment opportunity if the right decisions are made. But it also has some risks. Mostly, the higher the risk is, it could result in higher profits.
The interest of young people in Crypto might even come from this risk and speculative value, giving it a specific charm that might deepen the interest in this developing currency. It seems that young adults are more willing to take the risk of something that they believe in so deeply.
The Millennials, born between 1981 and 1996, have seen and heard a lot about the financial instability of the developing world. Since the 1980s there were only several years that can be considered as a ‘financially stable year.’
They lived through crises like Black Monday in 1987, the Asian Crisis and the Process of Financial Contagion in 1997, the subprime mortgage crisis of 2007 and many more. It could be said that this generation has never known the world without financial instability.
This instability has resulted in a lack of faith in traditional banking systems, making young adults desperate to find new ways of banking. Unlike older generations, Millennials have never seen sufficiency of the older system, which has resulted in a lack of interest and trust.
Many other generations have lived through economic instability, but what they did not have was modern technology.
Millennials are the first generation to have the privilege to have their own personal computers, and most importantly, have access to the world of the internet.
The main reason why young adults are more interested in crypto, and technologies in general, is that they grew up with them and simply have an advantage on older generations, who had to learn how to use the technology and to give up on the world they once knew.
We could say that cryptocurrency has a long history. The first attempt to make it work dates as far as 1982 when DigiChash was founded by David Chaum and ‘ecash’ was invented.
But the modern era of cryptocurrency began in 2009 with the arrival of Bitcoin. The Bitcoin remains to be the standard by which all other digital currency is measured.
No one is certain of the future of the currency, but the new generation is willing to invest and develop this very interesting, and for many, complicated currency.
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