Millennials Will Decide the Future of BTC
The 2020 pandemic has forced people to spend time at home in isolation. Jobs were lost, restaurants and other public activities were closed. All this had an impact on the economy
The GDP of many countries in the first six months of 2020 declined significantly. Bitcoin also had a hard time. However, it was able to withstand the load and even went up in price.
Bitcoin's rally has overtaken dozens of stocks on the NASDAQ, including IT - the only industry to have grown during the Covid-19 pandemic. Actually, this is not surprising, because Bitcoin is an excellent means for hedging risks.
Previously, gold was such an asset, but modern times require new solutions. Therefore, investors choose Bitcoin. Analysts at Charles Schwab Corporation show that the Grayscale Bitcoin Trust (GBTC) outnumbers other types of assets in the portfolios of millennial investors (25-39 years old).
For the older generation of investors, cryptocurrencies are not even included in the TOP-10 cryptocurrencies. However, this is not a problem. After all, millennials are ¼ of the world's population.
In 10 years, 60 percent of jobs will be owned by millennials. These people are knowledgeable in IT technologies and are loyal to cryptocurrencies.
According to JPMorgan, 50 percent of US millennials use PayPal and Venmo. The management of payment systems understands this perfectly. If a couple of years ago PayPal was criticized by cryptocurrencies, then in 2020 the company launched support for tokens. This has spurred private and institutional investment in the crypto market.
The reason why millennials invest in cryptocurrencies
As children and adolescents, they saw parental funds disappear in several major crises. Traditional systems have failed to provide investment protection. So, it's no surprise that millennials are looking for an alternative.
Big companies like PayPal have already caught this trend. This can be a great boost for the Bitcoin market. If 3% of the investment is transferred from gold to BTC, it will double the market for the first cryptocurrency.
In general, there are significantly more similarities between BTC and gold. Both assets have a limited resource, and over time they become more expensive due to the complication of production and increasing demand. Therefore, this makes Bitcoin as popular as gold.
In 2021, large investors such as Square, Grayscale and MicroStrategy entered the cryptocurrency market. Many have invested billions of dollars in BTC, and MicroStrategy has even made Bitcoin a major asset. This is an indicator of the stability and prospects of investments. Let it be so in the future!