Millennials Give Traditional Finance The Boot
A recent CNBC Survey that polled investors with minimum assets valued at $US1 Million has provided some interesting information about how the world is changing and how Millennials invest their money and earn their wealth.
Of the respondents 83% of Millennial investors omitted to investing in Crypto currency and would continue to do so into 2022. Baby Boomers were also polled with a staggering disparity emerging with only 4% of Boomers holding Crypto currency as an investment. The majority of Millennials planned on increasing their investments followed by holders and only a small portion 6% were planning on reducing their Crypto portfolios source
It is a clear sign that the current system is failing youth as they now have an opportunity to leave the current system and enter a new financial market that better suites their needs and provides opportunity. However, Crypto currency in it's current form still brings with it a significant amount of risk due to it's high volatility and risky environment.
Labor Shortage leads to Crypto payments
A Labor shortage in the United States is also driving companies to offer new incentives to attract staff with one company now offering to pay staff in crypto currency. Despite the volatility of the market Millennials are still up for accepting the risks in the hopes for stronger future gains through holding their tokens.
Traditional fiat currency doesn't provide the opportunity to 100x and many are at the whim of low interest rates so returns on their fiat currency are non existent. However many Millennials believe if they hold crypto for the long term they will gain more in value thus providing the opportunity to retire or purchase the item's they want.
The Boomer Technological Barrier
From anecdotal evidence that I have been gathering a large portion of Baby Boomers are not against crypto currency with many sharing the same frustrations with the current economic system and too wanting a change and new opportunities. However, less tech savvy generations including Gen Xers are feeling left out due to the complex nature of Crypto Currency investment.
Many Boomers I have spoken too recently lay in wait for an easier to use UI that will enable them to handle the majority of their trades and wallets. At current Crypto currency is still very much created on separate chains requiring multiple wallets and less than easy to use UI's that seem to put of boomer investors.
NFTs Become a Focus for Mainstream Artists
Also mentioned in the news segment above is the growth within the arts sector that is seeing a lot more mainstream artist commence joining the NFT market as it enables artists to retain IP of their art and earn a passive income as their art work is traded person to person.
With the current housing market crises which appears to be impacting a large portion of Millennials globally and the increase in inflation and rates it's no doubt that the disenfranchised youth will seek a new and alternative way to increase their wealth and "make it" in this world in anyway they can.
If many Millennials are wishing to continue to grow their net holdings in the crypto market then we could potentially be seeing the emergence of a new age of financial management systems and a new economic model.
Only time will tell!
Image sources provided and supplemented by Canva Pro Subscription. Skippy artwork crested by me and is of a future NFT . This is not financial advice and readers are advised to under take their own research or seek professional financial services
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Great article as usual. You wrote that image sources were provided? Can you give me an assist here? And thanks for using the #vyb tag. Best of luck in your new crypto.
Apologies forgot my supplemented by Canva Pro line. Updated and the Skippy image is one of the NFT series I'll be releasing its a teaser.
Hey no problem. Thank you very much for correcting it!
Can't wait for stuff like traditional stocks to end up on blockchain. And I mean bigger than the way it is right now.
Oh yeah that will cause it to moon! I wonder how they will performe arbitrage on block chain and stock exchanges although they probably won't they will probably just shift everything to block chain.
Oh, they'll figure it out.
Seems to me that younger folk are interested in both traditional stocks and crypto. That is, they are interested in the get-rich mechanisms. I think of that film Wolf of Wall Street...when I saw it, I despised it. It glamorized everything I see wrong with investing. Yet, the young people with whom I'm spoken seem to idolize that movie. As an alternative to drug-using fast wealth, I'd suggest slow, steady, hard work to achieve wealth. !LUV
@crrdlx(3/5) gave you
I'm in the same boat but that movie is a good indication that people whom support it would undertake the same behaviours to get rich quick. But no doubt if they were on the receiving end of the scams they would be upset.
It's amazing to see the development of everything that is going on. It is all happening way faster than I even realized. Even as an 'elder' millennial, I have had a time trying to adjust to the new way of doing things. It's not just traditional finance, it's traditional EVERYTHING! Even e-commerce is changing. Anyway, great post and keep up the hustle~
Thank you and yes I am also in your shoes when it comes to emerging technology I still remember learning how to use Metamask and Decentralised Web. It was a challenge than but so easy to do now. Amazing.
I don't think they are moving away from the traditional stock market because of all the Gamestop, Tesla and other stocks. However I do think they are more likely to have both crypto and normal stocks. I think places like Robinhood where you can buy crypto together is a reason why it is so high.
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Crypto also lacks considerations such as P/E ratios and quarterly earnings calls. From an investment standpoint, it's simpler to hold crypto than stocks. And, it's simpler to liquidate.
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It fits the I want it now mentality though.
You're right. But, that's exactly the problem it solves from traditional finance. Fast settlement. No bank holidays. The inefficiency is removed. If you're a good investor, it accelerates your success. If you're a bad investor, you learn why you're a bad investor much faster. I want it now has advantages and disadvantages.
That is a good point and you get to learn alot faster also. I was a bad investor lost a bit. Now I am okish
Yeah, very much the case. Crypto has actually reached the position of being an absolute no-brainer! It will unfold more and more. Accumulate and forget... revisit in time to come!
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Yes it will be interesting to see how 2022 pans out