Why is Bitcoin on the Rise as a Safe Haven Among Millennials?

Bitcoin (BTC) remains a safe haven for millennials to invest their money, and has been for the past couple of years despite the market downturn. But why is this really so?

Bitcoin, the largest cryptocurrency, is seen as a hedge against inflation and a store of value. With central banks around the world printing money to stimulate their economies, many investors across different age groups fear the devaluation of fiat currency. Bitcoin’s fixed supply of 21 million coins and decentralized nature make it an attractive alternative to traditional currency.

The COVID-19 pandemic has also played a role in the increased interest in Bitcoin. With the turmoil in stock markets and the global economy, investors are turning to Bitcoin as a safe haven investment.

The growth of devotion towards crypto

The value of Bitcoin has fluctuated wildly, reaching more than $60,000 in 2021 to trade at around $22,000 at press time. Despite concerns over fraud and scams, investors, especially millennials, are willing to take the risk and see Bitcoin as a viable investment option. And as the cryptocurrency market grows and matures, more enthusiasts are jumping on the Bitcoin bandwagon.

According to a BanklessTimes.com report, millennials are more likely to take a risk when it comes to investments, with 67% seeing Bitcoin as a safe haven.

Most millennials who participated in the survey believe bitcoin will become mainstream in the following years. They also see it as a better monetary tool than the dollar, euro or other fiat currency.

Speaking to BeInCrypto, BanklessTimes CEO Jonathan Merry said:

“Millennials consider BTC a safe haven because of its decentralized systems and increased security. It gives them the power to diversify their investments, which is important in times of economic uncertainty.”

For example, in 2021, nearly 50% of millennials, those between 25 and 40, were comfortable with crypto investments. Last year saw a similar narrative as the group chose crypto and Bitcoin in their retirement plans.

This is contrary to the beliefs of most people, especially GenX and Baby Boomers, who are more skeptical of Bitcoin and its potential for success.

Understand the reason behind the love

Millennials, also known as Generation Y, are those born between 1981 and 1996. They are considered to be the first generation to grow up with technology and are known for their technology savvy and willingness to embrace new technology. This is one of the reasons why many millennials have shown interest in cryptocurrency.

Cryptocurrency has become increasingly popular in recent years, and millennials are one of the demographic groups driving this trend. For many Millennials, the appeal of cryptocurrency is rooted in its decentralization and the fact that it operates outside of traditional banking systems. This can make it an attractive investment option for those looking to diversify their portfolios or want to take control of their financial future.

Another factor contributing to millennials’ love of cryptocurrency is their distrust of traditional financial institutions. Many millennials came of age during the financial crisis of 2008, which affected their view of the financial system. They saw firsthand how the banking system could fail and are looking for alternative options.

Support the cause, but at what cost?

Has this generation of investors continued this view? To answer this, BeInCrypto reached out to various millennials on Reddit (r/Bitcoin). Here are some comments:

A majority (five of the eight anonymous surveyed candidates) still believe and support Bitcoin. One of the Redditors said:

“No banker can debase Bitcoin via “money printing.” No one can confiscate Bitcoin if you have properly secured the private keys (seed phrase). We don’t need permission from the government or other companies to use Bitcoin. So, Bitcoin is a safe haven, the superior form of money.”

However, it is also important to note that the cryptocurrency market can be volatile, and investing in cryptocurrency comes with risks. As with any investment, it is important to research and understand the potential risks before investing, such as the possible collapse of crypto platforms.

In conclusion, millennials have shown a strong interest in cryptocurrency due to their technological savvy, desire for decentralization and control over their finances, and distrust of traditional financial institutions.

However, as with any investment, it is crucial to approach cryptocurrency with caution and understand its potential risks. Regulators are constantly breathing down to curb these decentralized institutions, mainly to regulate and control such organizations.