Bitcoin represents new hope for young investors;  This is what the demographics show

Bitcoin represents new hope for young investors; This is what the demographics show

A clear understanding of demographics provides insight into strategy and policy. As for cryptocurrency adoption, this is crucial because, apart from the numbers, there are stories unfolding around the world. Amid misunderstandings, limitations, and uncertainty, the interest in crypto adoption reveals the need for an alternative investment.

Demographics adopt coding

Piplsay released a study showing that 49% of Millennials and 13% of Generation Z own or own cryptocurrency. Another study by Stilt showed that 76.5% of Millennials (ages 25-40) and 17.4% of Generation Z (ages 18-24) own crypto. Both studies reflect between 62% and 94% of respondents who are either Millennials or Generation Z owning a cryptocurrency.

By way of comparison, the two studies highlight the low percentage of Gen X ownership ranges from 4% to 38%, representing different regions. Notably, Generation X ownership was lower, but it brought in more capital per transaction. The median Gen X purchase was $9,611, for Millennials, $8,596, and for Gen Z, that was $6,120, based on Stilt’s analysis.

This reflects greater interest among millennials and Generation Z, but increased access to investment capital among Generation X.

While cryptocurrency is called a youth market, there is also significant investment among Gen X (41-56 year olds). Why is it important to understand this in the context of investing today?

Why is it important

As different countries face economic pressures amid anticipation of recovery, investment is critical for all. For some, investments represent passive income. For others, the investment is a hedge against future financial shocks. In other cases, investments represent financial freedom and wealth creation.

It is currently not enough to save for retirement, personal goals and interests, with the imminent threat of inflation and uncertain interest rates. One idea that has a great deal of consensus among Millennials and Generation Z is the desire to have money working for them so that they don’t have to work for their money for the rest of their lives. Phrases like “chasing the bag” are a daily mantra for many. They are all well aware of the impact of financial crises like 2008-2009 that affected many economies.

Traditional investments such as real estate and bonds were out of reach for retail investors. This is because it pretty much requires thousands, if not millions of dollars to get started for the ultimate profitability. Their strict regulation has its advantages and disadvantages. They are still great ways to explore and invest in terms of creating wealth.

Nowadays, alternative investments such as crypto assets have sparked interest simply by offering lower start-up capital requirements and less documentation to get started. Moreover, crypto assets offer a time advantage. This comes in two ways – full time availability and options to withdraw deposit in minutes.

Stock markets open within limited hours, often 9 a.m. to 3 p.m., and close on weekends. Cryptocurrency exchanges are open 24/7! In addition, with up to $20 – $100, it is enough to start investing in crypto assets. This type of access appeals to the younger generations very much.

New hope

Stock markets have facilitated wealth creation for millions of people over the past few decades. It’s easy to consider that encryption is constantly available, on the other hand. However, it is a great way for any investor to interact with the market at a time of his choosing.

Whether you are Generation X, Millennials, or Generation Z with a 9-5 job, freelancing, or telecommuting, finding access to diverse investment options is vital. At the time of writing, the cryptocurrency market was trading at $997 billion. After 13 years of its inception, it is far behind compared to the total investment market worth trillions of dollars. The New York Stock Exchange (NYSE), for example, is worth $26.2 trillion – the largest stock exchange.

The cryptocurrency market is also in a bear year, which means that overall prices are in a downtrend. Although there are a lot of scary feelings, it is the best time to invest in learning before allocating capital to crypto assets.

Few asset classes have attracted the younger generations as much as cryptocurrencies. If the percentage of cryptocurrency owners remains small, this means that there is a lot to learn about the ambitions associated with the future of young people.

conclusion

The crypto industry accommodates retail investors. It is available through mobile applications 24/7. Amidst the bleak outlook, there is new hope for both young and seasoned investors that they can grow with this industry as it evolves in the decades to come. Younger generations are adopting it in hopes of securing their future or financial freedom. They are not afraid of being called a fool or a bubble game. Older generations also are not excluded.

If you can filter fear and learn during this bear market, you will be well positioned to enrich your investment journey.

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