A third of millennials have noted that they’d prefer to hold Bitcoin over shares. These numbers only continue to increase for every year Bitcoin maintains its stance as a un-inflatable, unconfiscatable and uncompromisable form of asset.
Money and major new technologies are generational shifts. While millennials are obviously open to Bitcoin and many already prefer it as a form of investment, the younger generations are growing up in a Bitcoin native world. To them, a digital asset is a perfectly normal concept.
Furthermore, as Bitcoin continues to develop its brand as “digital gold”, more and more traditional investors are looking to get exposure.
We experienced this first hand at a recent investor conference: a number of traditional investors, all who are familiar with currencies and precious metals such as gold were enquiring into how to buy and hold some Bitcoin for the very same reasons as they hold gold and other international currencies.
This is further reinforced by major university endowment funds (eg. Harvard) investing in Bitcoin and digital assets via fund managers such as a16z.
All of this drives the narrative for Bitcoin as a viable investment, and because Bitcoin is what’s called “Lindy compatible”, this narrative gets stronger with time.
In other words, for every year that Bitcoin is in market, stays secure, remains stable, and delivers on its guarantee as an uninflatable, uncompromisable and unconfiscatable asset. Its brand and user base gets stronger, the network grows, and more capital continues to flows in, driving a virtuous, self-reinforcing cycle.
Bitcoin’s Lindy Effect is explored further in the networks section of https://bitcointimes.news/.
Bitcoin is not a passing fad
Another survey found that millennials are five times more likely as older adults to say Bitcoin is the best way to save for the future.
We’re not aware of any Investment in the world that offers such an asymmetric opportunity; ie $1000 in Bitcoin today could be worth $1 million in 10 years if Bitcoin succeeds in its promise as a global digital reserve asset, and if it fails, it will be worth zero.
Bitcoin’s potential risk/reward is significant, and people all around the world are starting to realise this, spearheaded by the millennial generation.
A report by Edelman has found that 25 per cent of American millennials, aged between 24 and 38, and earning $100,000 in individual or joint income, or owning $50,000 in investable assets, are either holding or using cryptocurrencies. Also, another 31 per cent are interested in using cryptocurrencies.
“Of the people who believe that cryptocurrencies will become widely accepted, over one-third (36 per cent) say they would be interested in converting to primarily using a cryptocurrency rather than the U.S. dollar. However, a majority (57 per cent) say they would not be interested in converting away from the U.S. dollar. Millennials are almost equally split between being interested (48%) and not interested (50%).”
According to a new eToro survey of 1000 online traders, 43 percent of millennial online traders place more trust in cryptocurrency exchanges than the United States stock market.
Millennials have lost trust
Younger investors’ loss of trust stems from the fall of Lehman Brothers and the like following the irresponsible practices that led to the worst recession since the Great Depression. Trust was further eroded when people all around the world watched hundreds of billions of dollars of taxpayer money funnelled into the largest financial institutions while their savings continued to evaporate.
The banks got free money through quantitative easing while the average person’s cost of living continued to rise.
It’s no wonder the statistics are abysmal.
Three-quarters of affluent millennials fear that the global financial system is fragile, prone to hacks and their personal information will at some point be stolen. 58 per cent of non-affluent millennials have the same opinion about the security of the global financial system, and a huge percentage of millennials (77 per cent of affluent and 58 per cent of non-affluent) are expecting another global financial crisis in the near future.
It’s this final point which is driving the zeitgeist of our time. Bitcoin represents a move to trusting math, over trusting the establishment. Personal sovereignty and responsibility is today’s counter-culture.
It’s our version of ‘power to the people’ and it’s being championed by the cohort of Bitcoiners all around the world, working hard to build a new financial system, free of the limitations, corruption, exorbitant fees and censorship of the legacy financial system.
This shift is also driving what may be the greatest wealth transfer since the industrial revolution, or perhaps of all time.
Whatever happens, Bitcoin has fundamentally altered the world, in a way that nobody could’ve imagined a decade ago. What the world will look like in 10yrs time, as we prepare to transition from 2029 to 2030, nobody really knows.
But if Bitcoin is still around, it may well be the most valuable currency in the world, and the backbone of a global financial system that’s inherently more stable than anything we’ve had before.
Aleksander Svetski is an entrepreneur and self taught writer, speaker and researcher of all things money, economics and business. He founded Amber, the first ‘micro-investing’ app in Australia focused on Bitcoin.