Many millennials are seeking investment options with higher reward at higher risk. Among some of the favorite investment strategies is cryptocurrency. Known by many to be volatile, millennials are more comfortable taking that risk to seek out higher returns.
A deVere study surveyed more than 700 millennial clients and found that a majority (67%) of them found Bitcoin to be superior to gold. Compared to other generations, Millennials were found to be 3 times more likely to invest in cryptocurrencies than other generations. Among some of the favorites cited were Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Polkadot (DOT), Stellar (XLM), and the infamous Dogecoin (DOGE).
For reference, Bitcoin surged 92% in 2019 and 204% in 2020. Too good to be true? Possibly. In 2018, the cryptocurrency crashed -73.56% so it is not without risk. But millennials are feeling more and more comfortable taking on that risk especially with institutional investors on the rise. As of March 2021, institutional investors total in the billions. A trend that is likely to continue as adoption grows.
Additionally adding to investor confidence is that trading can take place on a mobile phone. The ability to quickly adapt to changing circumstance gives them more courage in taking on the volatile risk. “If it starts tanking, I get notifications and can handle it pretty much wherever I’m at. Even if I’m sleeping,” told millennial investor Wes from Pittsburgh, PA. “I’ve bought in and sold out from everywhere from a Dentist waiting room to my son’s baseball games.”
Investors are expecting Bitcoin to reach 6 digit records by the end of 2021. As of the date of this article, it stands at $54,507 per Bitcoin.