Amid the coronavirus pandemic, crypto and digital assets are quickly proving to be an alternative investment option for Millenials.
And for good reasons.
The stock and the commodities market are bleeding because of the effects of lock-down. Lock-downs in parts of the United States and Europe have disrupted the supply chain, impeding the free flow of goods, which is negative for commerce.
Coronavirus Is Highly Contagious, Lock-downs Damaging To the Global Economy
COVID-19, which is a very contagious zoonotic virus, has already claimed lives in the United States and across the globe. To prevent further spreads, harsh preventive measures—already impacting the global economy negatively, have been implemented.
But it is during these times of lock-down, and curfews that trading of crypto has increased. As it is, cryptocurrency trading can be done an all-year-round with no breaks because of the absence of intermediation allowing traders to move value or effect transactions via a robust infrastructure, out of reach from the government.
Lockdowns combined with central banks’ intervention has been a boon for traders. Cryptocurrencies are immune to censorship and other forms of third-party involvement. Trading is automated, and transactions secured by cryptography.
Specifically, Bitcoin, the most valuable coin, which trades without circuit breakers has remained resilient after bottoming up from March 2020 lows.
Then, BTC plunged to $3,800 but is now trading at around $6,650.
However, the free-falling of Bitcoin didn’t faze investors as some say it as an opportunity to double down on their crypto investment.
Spike in Crypto Trading Activity
Talking to CoinDesk, the CEO of Crypto.com, previously Monaco, Kris Marszalek, said month-to-month usage of the platform has been on the rise since September 2019, with the number of downloads spiking in February when lockdowns were announced.
He cites the store of value benefits of cryptocurrencies including Bitcoin and its properties as a hedge to the negative consequences of QE.
The same trend were observed in other crypto platforms as MyEtherWallet where its COO, Brian Norton, said people were buying ETH.
Catherine Coley, the CEO of Binance US, notes that amid the meltdown in the traditional market, their exchange has seen unprecedented trading volumes.
Traders are specifically attracted to the unique properties of Bitcoin and stablecoins.
35% of US Millenials Have Bought At Least One Cryptocurrency
A September 2019 survey by YouGov revealed that 81% of Americans are familiar with cryptocurrencies.
75% of those surveyed said they have heard of Bitcoin but 35% of Millenials, twice the adults, said they have bought at least one type of cryptocurrency.
“Among all US adults who are familiar with at least one kind of cryptocurrency, 18% say they’ve purchased cryptocurrency in the last year. But among millennials familiar with cryptocurrency, this number nearly doubles: 35 percent have bought at least one type of cryptocurrency within the past year.”