Millennials or Generation Y (born 1981-1996) have grown up with technologies without which today’s life would be hard to imagine. The desire for quick wins has become strongly established in these generations, leading many into crypto markets. More than 12% of Generation Y think that investing in cryptocurrencies is the best way to go without having to wait 10 years for a profit.
During this year, Bitcoin has continued to gain ground. In November, Bitcoin reached an all-time high of $68,789.63. Its value has more than doubled since the beginning of 2021, boosting the value of other cryptocurrencies as well.
A recent Bankrate survey shows that 49% of Generation Y are comfortable with owning cryptocurrencies and about 12% think cryptocurrencies are the best way to invest their money without having to wait for long-term gains.
In the survey, Generation Y was the generation with the greatest interest in percentage terms. In comparison, only 22% of baby boomers are interested in the crypto market, as this group views cryptocurrency investments like a lottery.
Another reason why many young investors are looking into owning cryptocurrencies is that they don’t want to miss out on the latest trend. This includes the volatility of the crypto market which makes it possible to generate gains of 100% percent or more within a few hours.
As we have seen, during the first two months of the year the bitcoin price has doubled. This is wonderful as a speculative asset.
On the other hand, investors need to pay attention to how highly volatile cryptocurrencies are. Since most only talk about upward potential, the risks or downward potential must also be kept in mind. As with all speculative investments, you should only invest what you can afford to lose.
The potential for quick profits is something that probably only the crypto market offers at the moment, especially considering that it can be a powerful weapon to fight rising inflation.
What many forget is that behind many cryptocurrencies is an entire ecosystem. So if you decide to invest in cryptocurrencies, researching the ecosystem could be an important part of the investment decision. In addition, one should be clear about the target. Whether it is to escape the centralized financial system or simply to speculate, research and knowledge should be a major part of the process.