Tag: millennials

eToro's Survey Reveals 40% of Millennials Could Favor Crypto Investment In Recession

eToro, a Cyprus based multi-asset and social trading brokerage company, recently surveyed American investors about their concerns about how their portfolios could be affected by the US-China trade war and conflicts with Mexico. 

Two-thirds of the respondents asserted that they were worried about a looming recession. As a result, they were weighing options on transferring their assets to various safe-havens, such as cryptocurrency. 

Hedging risks are always in the mindset of any investor. Notably, those surveyed from America are not an exemption as they are searching for alternatives to realize this objective. The eToro survey revealed that 40% of millennials (individuals born between 1980 and 1994) favored cryptocurrencies. 

Conversely, investors from Generation X (people born between 1965 and 1979) affirmed that they preferred spending on goods, whereas their Generation Z counterparts (from 1995 to present) preferred real estate investment. 

Guy Hirsch, eToro’s USA Executive Director, asserts:

“We believe that if a recession were to occur, we’d see shrinking stock portfolios and growth in other asset classes like crypto, as well as new fractional ownership models. Historically, these investment opportunities have been limited to high net worth and institutional investors, but innovation is unlocking these opportunities for everyday investors and clearly, these results indicate that the demand is there.”

Notably, at least 1000 investors were involved in the survey. Cryptocurrencies, such as Bitcoin, have been favored as being considerable hedges against worldwide risks instigated by the US-China trade war. 

Some pundits have asserted that an escalation of this issue will push cryptocurrency adoption at an alarming rate. Expressly, this is happening as the IMF chief, Christine Lagarde, recently proclaimed that cryptocurrencies should be given more room to grow. 

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Coffee Origin Traceability Propelled by Blockchain App

Many millennials are becoming mindful of the source of what they consume or purchase. As a result, millennials who are coffee enthusiasts have become more demanding as they seek to know the origin of their cup of coffee. Some of the top coffee shops have heeded to these concerns as they are seeking technology-based solutions, such as blockchain.

Notably, some coffee companies, such as Jacob Douwe Egberts and J.M. Smucker Co. have collaborated with Farmer Connect, a blockchain initiative startup, in propelling the traceability of coffee beans’ origin. This objective will be realized through Thank A Farmer, a consumer-facing application, that will be blockchain-enabled. 

The digital ledger network utilized in the app will be instrumental in tracking transactions, as well as availing customers with data about where the coffee was roasted, imported, exported, milled, and firmed. 

Joe Stanziano, General Manager and Smucker Co. has asserted that Farmer Connect is an incredible initiative that will propel transparency in the coffee industry, and this will boost customer loyalty.

Stanziano stated:

“Our participation in the Farmer Connect blockchain initiative demonstrates our commitment to providing consumers with the transparency they crave while also creating new ways to support smallholder coffee farmers.”

Farmer Connect is a startup that seeks to offer blockchain-based solutions to different coffee players. As a result, it aims to raise around $20 million by early 2020. 

Coffee traders have been facing the challenge of attaining minimal margins based on the lack of transparency on pricing information. This problem will be averted through blockchain and transparency will be available while transaction costs will be cut. 

Notably, Thank A Farmer app will be pivotal in informing coffee consumers, such as millennials, the origin of their cup of coffee, and this will optimize their utility and loyalty.

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Why are Millennials Favouring Bitcoin?

In recent days, Bitcoin bulls have been on a positive trajectory as Bitcoin’s price has been trading at $10,000 or slightly below this mark. According to CoinMarketCap, Bitcoin continues to be the “king” of cryptocurrencies with a market cap of $179.68 billion. 

Millennials or Generation Y represent a group of young people who were born between 1981 and 1996, and they have traits, such as tech-savvy, ambitious, confident, and achievement-oriented. Based on technological innovations revamping the world like cryptocurrencies, millennials have been at the forefront to embrace them. Therefore, explaining the reasons why millennials are heeding to the call of bitcoin being an exceptional technological advancement and investment tool.

Bitcoin as a safe-haven asset during geopolitical uncertainty

Uncertainties are inevitable in life, and this is a reality that millennials have come to comprehend. For instance, geopolitical tensions are being experienced across the globe from Venezuela’s political turmoil to Zimbabwe’s dwindling economy. The latest entrant in this bandwagon is Iran following the killing of its general Qassem Soleimani by the US administration. 

Millennials, therefore, view Bitcoin as a safe-haven when it comes to times of geopolitical uncertainty, and this is the reason why they regard it dearly. For instance, the trading of Bitcoin in Venezuela using LocalBitcoins, a platform where users buy and sell Bitcoin, skyrocketed after political tensions emerged in this nation, and most of the participants were the younger generation. 

CoinDesk’s Bradley Keoun noted, “For some market analysts and investors, bitcoin’s rally served to underscore the digital asset’s perceived value as a hedge against inflation, historically an economic consequence of major wars.”

It, therefore, seems millennials have heeded to the call by crypto analysts that Bitcoin serves as a safe-haven entity just like gold during periods of geopolitical uncertainty. 

Bitcoin’s offers the preferred autonomy

Bitcoin is powered by blockchain’s distributed ledger technology (DLT). As a result, autonomy is guaranteed because transactions are stored in decentralized ledgers that are immutable, transparent, and traceable. This is good news for millennials because one of their characteristics entails independence, and this is presented by cryptocurrencies, such as Bitcoin. 

Industry-Leading benchmark research reflected this trend on retirement investment plans within self-directed brokerage accounts (SDBAs) dubbed Charles Schwab’s SDBA Indicators Report.

It revealed that millennials slotted a bigger percentage of their portfolios to exchange-traded fund (ETF), an investment fund traded on stock exchanges. They invested more in Bitcoin as compared to the likes of Netflix or Disney during the third quarter of 2019. 

For instance, they held 1.84% of their assets in the Grayscale Bitcoin Trust (GBTC), an investment product provided by the Digital Currency Group, compared to Disney and Netflix at 1.68% and 1.58% respectively. 

It, therefore, shows that Bitcoin is more popular with millennial investors as they are not risk-averse. 

17.2% of millennials own crypto

According to Edelman’s study, 17.2% of millennials already own crypto. This number is higher for the wealthy ones because 25% of them own cryptocurrencies, whereas 31% have shown interest. 

On the other hand, a whopping 74% believe that technical innovations, such as blockchain, enhance security in the global financial system. 

Additionally, an expert from ETF Store, an independent investment advisor, attested that 90% of millennials prefer cryptocurrencies to gold. These statistics, therefore, show the reason why millennials favor Bitcoin. 

Recently, billionaire investor Tim Draper urged millennials to consider Bitcoin investments. He was of the idea that Bitcoin would be a gamechanger for young people who wanted to ensure that they had sufficient money for retirement. 

Draper noted, “If you are a millennial, then Bitcoin is the best place to invest your money.” Millennials are not taking this advice for granted, given that they are continuously embracing Bitcoin for various reasons, such as an ideal investment entity and safe haven. 

Bitcoin Price Could Reach $350,000 by 2044 Depending on Millennials’ Investment Game Plan

According to leading US-based crypto exchange, Kraken Exchange, Bitcoin price could shoot through the roof to $350,000 by 2044 if millennials were to invest more than 5% of their inherited wealth into this digital asset. Millennials represent a generation of persons born between 1981 and 1996 and are depicted by characteristics, such as tech-savvy, risk-takers, achievement-oriented, ambitious, and confident. 

Keeping fingers closed

According to the tweet, a Bitcoin price prediction of $350,000 could be attained by 2044 if millennials invested approximately $971 billion into Bitcoin, assuming a 2% inheritance tax and 5% investment allocation. 

It is estimated that in the US alone, $70 trillion will be transferred from baby boomers, persons born between 1946 and 1964, to Bitcoin-friendly generations like millennials in the coming decades. Notably, 70% of this amount is expected to be transferred in the next ten years. 

Moreover, it is speculated that these estimates are noteworthy as the younger generations have a higher probability of purchasing Bitcoin. 

According to a 2019 survey, 42% of participants aged between 18 and 34 years acknowledged that it was likely for them to buy Bitcoin in the next five years compared to only 8% of respondents aged above 65 years. 

Additionally, an Edelman’s study revealed that 17.2% of millennials already own crypto, and this number is higher for the wealthy ones because 25% of them possess cryptocurrencies, whereas 31% have shown interest.

Millennials prefer tech products

Kraken Exchange also noted that millennials were more likely to invest some money into Bitcoin as this generation favored crowd-sourced information, tech products, transparency, and mobility. Moreover, they had distrust in banks.

It is also speculated that the projections presented could be bigger as the figures were only based on the United States. 

Earlier this year, billionaire investor Tim Draper urged millennials to consider Bitcoin investments. He was of the idea that Bitcoin would be a gamechanger for young people who wanted to ensure that they had sufficient money for retirement.

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Will Bitcoin Skyrocket or Plunge? Young Traders Have Wrecked US Stock Market, Says Fund Manager

The president of Smead Capital Management addressed the topic of current trends of the US stock market in an interview with CNBC.

Will millennials be to blame for US stock market failure?

Cole Smead, a seasoned fund manager and head of Smead Capital Management stock market investment firm, disclosed that “young, dumb” investors have damaged the US stock market, as they have onboarded the stocks and bonds bandwagon. He expressed his disapproval and said that the high valuation levels currently seen on the market were an example of “stock market failure,” as millennials have taken on oversized risks in equities. He said in a CNBC interview:

“They are buying bullish call options that expire inside two weeks. There was ($500 billion) of bullish call options bought in a four-week stretch by small retail traders. In ’99 it was $100 billion, in ’07, it was $100 billion.”

The craze for buying into US stocks seem to have reached highs amid the coronavirus pandemic, as numerous investors have been seeking a way to secure their funds through hedges. According to Smead, when US stocks plummet, “it will get ugly.” The Smead Capital Management president predicted that the Federal Reserve would not be able to save the stock market.

Though the seasoned investor has expressed his disapproval on the younger generation riding the stocks bandwagon while having no strategic investment plan, he said that they were not entirely to blame. He called out baby boomers as well for pouring unrealistic “premiums” into traditional stock market winners, such as tech giant Microsoft.

Smead predicted that Microsoft stocks will reap no profits for investors who have diversified their funds that way. He told CNBC:

“Microsoft is a wonderful company. But at 40 times earnings, there is a 0% chance of that producing wealth for someone over the next 10 years that will meet their needs.”

What about Bitcoin?

Other market experts have expressed similar opinions as Smead. Many have observed that the US dollar will continue its plummeting trajectory, as the Federal Reserve is planning to push inflation rates above the target 2% and it is on the verge of releasing a second stimulus package to alleviate the coronavirus-induced financial crisis.

With the plans to do so, many have diversified their funds and invested in Bitcoin (BTC) as a hedge. Even huge companies have secured their assets by investing a portion of their treasury reserve into BTC, notably MicroStrategy, Square, and Stone Ridge Asset Management, among others.

The crypto move will likely lead other investors to consider Bitcoin as a hedge if they haven’t done so already. JPMorgan analysts have said that among younger investors and older ones, the younger generation had a higher tendency to favor cryptocurrencies and tech-related stocks, as the risk that comes with high volatility did not deter them.

Strategists also said that in the near future, Bitcoin may undergo selling pressure, as it is currently overvalued if one were to assess it as a commodity. However, Bitcoin’s value was sure to gain in the long term, according to JP Morgan Chase & Co experts.

At the time of writing, the digital gold cryptocurrency is trading at around $11,248 on CoinGecko and has fallen back slightly since its bullish behavior observed recently. Market bulls are anticipating its next bull run.

Former Australian Politician Converts to "Millennial’s Version of Gold" – Bitcoin

The outgoing senator for South Australia, Cory Bernardi, has joined the Bitcoin bandwagon lately, seeing it as the millennial’s version of gold. His inclination towards this digital asset has also been propelled by its growing demand.

The modern digital version of gold – Bitcoin

Cory Bernardi, who has been a long-serving senator of South Australia from 2006 to 2020, took to his Twitter to share his sentiment about Bitcoin. He tweeted:

“Become convert to Bitcoin in the last couple of years. My conclusion is it is the millennial’s version of gold. Still see risks attached but are basically the same as other asset classes – leg, confidence and demand.”

The former legislator believes that the demand for Bitcoin (Bitcoin) is getting stronger by the day, which has driven his decision to jump on the BTC bandwagon. 

Assets are prone to risks

Bernardi noted that Bitcoin was prone to risks just like other asset classes based on factors, such as demand and confidence. Furthermore, it is not strange that he correlates Bitcoin with millennials, as other industry experts have also made the observation that the younger generation was more prone to adopting crypto-assets and tech stocks, while older investors had a tendency to favor gold, as it consists of a less volatile asset than BTC.  

Millennials or Generation Y represent the population of young people born between 1981 and 1996. Traits often associated with this cohort are as follows: tech-savvy, ambitious, confident, and achievement-oriented. Together, they have heeded the call of Bitcoin being an exceptional technological advancement and investment tool.

In March, Kraken Exchange, a leading US-based crypto exchange, revealed that Bitcoin’s price could shoot through the roof and hit $350,000 by 2044 if millennials were to invest more than 5% of their inherited wealth into this digital asset.

Earlier this year, billionaire investor Tim Draper also advised millennials to invest in Bitcoin as this would be their pathway to a wealthy and successful retirement life. He added that millennials are standing at a point in history where they have the entire future of the world financial systems ahead of them.

CNBC Survey: Most Millennial Millionaires Own Cryptocurrencies at 83%

Based on the technological innovations revamping the world like cryptocurrencies, millennials have been at the forefront to embrace them, as cited by CNBC Millennial Millionaire Survey findings.

The study noted that millennials had higher levels of cryptocurrency portfolio holdings than baby boomers, with 83% of millennial millionaires owning digital assets. Furthermore, 48% of them expect to increase their crypto investments in 2022, with only 6% anticipated to decrease their holdings. 

The insights gained also entailed 53% of the millennial millionaires staking 50% of their wealth in cryptocurrencies. 

The survey gauged various economic parameters in the market. For instance, inflation was the primary driver of millennials’ investment in cryptocurrencies because they deemed them as inflationary hedges. 

Millennials represent a group of people born between 1981 and 1996. They are usually tech-savvy, confident, ambitious, and achievement-oriented. 

The correlation between cryptocurrencies and millennials has been robust to the extent that the former senator for South Australia, Cory Bernardi, disclosed that he had joined the Bitcoin network because it was the millennial’s version of gold. 

Therefore, industry experts have correlated Bitcoin with millennials because they are prone to adopting crypto-assets and tech stocks, while older investors tend to favour gold.

In 2020, billionaire investor Tim Draper advised millennials to invest in Bitcoin as this would be their pathway to wealthy and successful retirement life. He was of the idea that Bitcoin would be a game-changer for young people because cryptocurrencies would be part of the world financial system’s future.

Kraken Exchange, a leading US-based crypto exchange, had also revealed that Bitcoin’s price could shoot through the roof and hit $350,000 by 2044 if millennials were to invest more than 5% of their inherited wealth into this digital asset.

Bitcoin Continues to Circulate in a Semi-Bullish Territory

Santiment believes that Bitcoin is still in a semi-bullish area, given that circulation continues to be steady.

The on-chain metrics provider explained:

“Bitcoin continues to circulate in the semi-bullish territory, according to our latest NVT model data. With BTC back under $50K, circulation staying steady is encouraging to see, as it implies utility is remaining at a justifiable level vs. market cap.”

Over the Christmas weekend, Bitcoin (BTC) was able to hold above the psychological price of $50K, given that the top cryptocurrency has been ranging between the $47K and $51K area since it gained momentum after slipping to lows of $42,000 on December 4.

Market analyst Will Clemente had previously noted that Bitcoin had to reclaim the $53,000 area before a bull run to be reignited. 

Meanwhile, Bitcoin has significantly outperformed gold in 2021. Data analytic firm IntoTheBlock confirmed:

“Bitcoin and Ethereum broke their previous ATH in 2021, appreciating by 71.8% and 456%, respectively. During the same period, Nasdaq and S&P 500 had positive yearly returns of 26.54% and 25.82%. Moreover, BTC has vastly outperformed GOLD, which had an ROI of -5.26%.”

American billionaire investor Ray Dalio recently noted that Bitcoin was almost a younger generation’s alternative to gold, which has imputed value.

Bitcoin is often considered as the millennial’s version of gold. Industry experts have correlated Bitcoin with millennials because they are prone to adopting crypto-assets and tech stocks, while older investors tend to favour gold.

A recent CNBC survey indicated that millennials had higher levels of cryptocurrency portfolio holdings than baby boomers, with 83% of millennial millionaires owning digital assets. Furthermore, 48% of them eyed increasing their crypto investments in 2022, with only 6% anticipated to decrease their holdings. 

70% of Millennials Crypto Owners Invest in IRA, Survey Shows

Irrespective of the current outlook in the digital currency ecosystem, the number of millennials dipping their foot in the space is growing by the day. 

According to a new survey report from AltoIRA, as many as 39% of 2,000 millennials aged 25 to 40 own cryptocurrencies. The survey suggested that while this number may be less than average, those who invested in digital assets are significantly more than those who have investments in mutual funds.

The details shared by Alto IRA, which offers individual retirement account (IRA) related investments, showed that of those who have investments in crypto, as many as 70% of millennials who own crypto and an IRA hold crypto in an IRA. 

“When it comes to interest in digital assets, the vast majority of millennials either own crypto or are considering it. Almost 40% of millennials own crypto, which is greater than the percentage of millennials who own mutual funds and about equal to the number of millennials who own individual stocks. Those who own cryptocurrency are likely to include it in their retirement portfolio.” the report reads.

While it may sound counter-intuitive, the Alto IRA report found that most millennials who maintain a bullish attitude towards cryptocurrencies do so with the mindset that their funds are much safer in the assets compared to stocks. Millennials have often been seen as the most friendly demographic group when it comes to embracing digital assets.

With many in search of freedom and independence as it relates to their financial activities, crypto seems to be the only logical option that can also bring the right returns to investors within a comparable period of time.

In all, the perception of simplicity and access to crypto has largely drawn an embrace from this set of investors, most of whom believe you need to be a professional investor to gain access to mutual funds.

Millennial Investors Open the Most Crypto Accounts in Q2, Apex Report Shows

With nearly 370,000 new crypto accounts opened in Q2 of 2022, Millennials are rising in the crypto space, according to a report by investing platform Apex Fintech Solutions (Apex).

Apex data showed millennial investors continued to be bullish, especially in the flagship Bitcoin (BTC) and Ethereum (ETH) cryptocurrencies. Per the report:

“Broken down by generation, millennials represented 54% of crypto-enabled accounts, with Gen Z and Gen X each accounting for 21%. Baby boomers held just 4% of crypto-enabled accounts as of June 30, 2022.”

The Apex Next Investor Outlook report pointed out that millennials’ faith in flagship cryptocurrencies was not dented despite a tumultuous quarter in the crypto market.

Apex highlighted:

“Bitcoin saw its price versus the U.S. dollar slump more than 50% in Q2 2022, but that apparently wasn’t a deterrent to investors, as approximately 1,050 accounts opened a position in Bitcoin each day throughout the quarter. Millennials showed particular interest in Bitcoin, accounting for about half of the 591,000 accounts that hold the cryptocurrency.”

Millennials also take nearly 50% of the crypto accounts by holding Ethereum.

Nevertheless, Generation Z (Gen Z) was not overly optimistic because they believed a crypto winter was coming. As a result, they veered away from crypto stocks, with their primary investments being traditional stocks throughout Q2. 

Millennials represent the population of people born between 1981 and 1996 (ages 26 to 41 in 2022), whereas anyone born from 1997 onward is part of Gen Z. 

Traits often associated with millennials include being tech-savvy, ambitious, confident, and achievement-oriented. As a result, they have heeded the call of Bitcoin being an exceptional technological advancement and investment tool.

The correlation between BTC and millennials has been robust to the extent that Cory Bernardi, a former senator for South Australia, disclosed that he had joined the Bitcoin network because it was the millennial’s version of gold.

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