Is cryptocurrency suitable for everyone?
The short answer is yes. Earlier, we talked about global trends in the world of cryptocurrencies. Now let’s talk about why all ages can use digital assets instead of traditional currencies.
Why can people of any age use cryptocurrency?
When it comes to investing in Bitcoin or altcoins like Ethereum, the generation of millennials and the so-called “zetas” (people born in 2000 and younger) are often remembered. This is statically justified because young people are better versed in Internet technologies. In addition, they understand what methods of making money on the Internet are really successful.
Generation Z kids pick up smartphones as soon as they learn to pick up anything. They grow by watching the virtual economy in online games and pocket money on the virtual value exchange. Selling virtual goods and services in 2018 is as normal for them as spending a vacation at a vacation center for their parents in 1989.
A simple comparison leads to a simple conclusion – where one in three millennials would prefer to invest in the cryptocurrency market, a 16-year-old Zeta teenager will simply buy video cards for mining with his parents’ money if it does not work himself. To this, perhaps, his parents themselves are pushing. The Telegraph claims that over 25% of parents give their kids digital currency to shop online or pay for gaming accounts. Children perceive this as pocket money and so the first investment scenarios are laid in childhood.
Therefore, cryptocurrency only at first seems like a toy to them. Indeed, in a few years, they are likely to seriously trade bitcoin, ether, or other coins.
How can middle-aged people use cryptocurrency?
The millennial generation (22 to 37 years old) is most interested in investing in crypto. This differs from Gen X (37-51) and boomers, where only 4% are willing to invest in digital currency. Why is everything going this way?
Fundstrat’s head of research, Thomas Lee, believes the millennial generation doesn’t like the banking system. And here the question lies not only in the technological lag when the crypt allows you to change the value without any intermediaries, which in itself changes the world that surrounds us.
This approach and its predominance among millennials is the basis for the massive development of virtual currencies. People under the age of 30 are ready to invest in crypto, explaining that securities carry great risks, which means they are unreliable.
How do boomers feel about cryptocurrency?
At first glance, the crypto world is the exact opposite of the traditional financial system in which the boomer generation grew up. Many crypto experts were convinced that people born between 1946 and 1965 did not understand at all what Bitcoin is and how it works.
After all, representatives of this generation are used to getting paid, not thinking about investing in securities or anywhere else. And the first post-war generation considers the acquisition of their own home to be the greatest achievement. However, traffic to the resource is increasing every month.
Despite their age and conservative notions of finance, boomers want to invest more in the cue ball. Bitcoin was created by Satoshi Nakamoto in response to the 2008 crisis when rising inflation wiped out the savings of most of the world’s population. BTC was just supposed to become an anti-inflationary asset.
As the 2020 financial crisis hit by the coronavirus pandemic, the boomers decided to invest their retirement savings in digital currency. In this way, elderly people plan to protect their funds and, possibly, create start-up capital for their children.
The boomer generation sees cryptocurrency as a promising capital for old age. Millennials are buying cryptocurrency because they see it as a replacement for the traditional banking system. However, their crypto is rather an addition to metals and securities. But Gen Z is investing in digital currency, as the Internet environment is more native to them than to millennials and boomers.
This differs from the classical understanding of investment. But let’s face it. Seriously, how many traders at 18 are buying up Microsoft stock? Or go to an online exchange to trade aluminum futures? There are not so many of them, since it was necessary to combine 18 and 29-year-old players in the exchange for any significant figure. And this data is for the USA only.
Can an average teenager buy an Apple stock to make some money? Sounds a little mocking. But can he or she buy some Bitcoin Cash, Litecoin, or Ripple and start making money on crypto? Yes, everyone can do it.
Is it safe?
The short answer is yes. But you also need to do some pre-research. The ledger makes sure that an accurate balance can be determined for all transactions between “digital wallets.” All transactions are reviewed to make sure that the current spender owns the coins used. Often referred to as a “transaction blockchain” is this public ledger. Blockchain technology, through encryption and “smart contracts” that make the company practically unhackable and void of fraud, ensures safe digital transactions. Blockchain technology is poised to influence virtually every segment of our lives with protections like this.
The explanation why cryptocurrency has any value is the blockchain. The explanation why cryptocurrency is in high demand is the ease of usage. All you need is a smart device, an internet connection, and you become your bank instantly, make payments and transfers of money. There are more than two billion people with Internet access who are not entitled to use conventional exchange networks. In the cryptocurrency business, these individuals are clued-in.
And there is no other electronic cash system where you own your account. Since users can only send and receive Bitcoins via a smartphone or device, technically, Bitcoin is open to consumer communities without links to conventional financial networks, credit cards, and other payment mechanisms.
Prepare for volatility
The demand for cryptocurrencies is unpredictable, so be prepared for ups and downs. You’ll see drastic price swings. If it can’t be managed by your financial fund or emotional health, cryptocurrencies may not be a wise option for you.
Right now, blockchain is all the rage, but mind, it’s still in its infancy. Challenges come from engaging in something different, so be prepared. Do your research and spend conservatively to begin if you intend to join.
It also needs to be taken into account that a crypto is a form of currency that has been around for just about 10 years. It is not gold, nor is it fiat. This is a brand-new technology that has already proven its potential to change the global financial system radically.