Millennials are Ditching Banks, Buying Bitcoin for Retirement
Millennials entered the workforce at the height of the 2008 financial crisis. Distrusting of financial institutions, millennials are ditching the 401k to explore alternative investment options in preparation for retirement.
The millennial generation represents any person born between 1981 and 1996. The head of this generation is approaching 40 years of age - individuals well into their careers with a glimpse of retirement entering their field of view.
However, two-thirds of millennials report that they’ve saved zero dollars for retirement. Whether they were finding their way through high school, entering the workforce after graduation, or climbing the rungs of the corporate ladder in the first several years of their career, millennials across the board witnessed the destruction caused by banks and institutions with the 2008 housing collapse.
That’s not to say millennials are simply unprepared for retirement. After all, their ranks include Coinbase’s Brian Armstrong, Airbnb’s Brian Chesky, and Facebook’s Mark Zuckerberg. Rather, the banks have lost their pull, and millennials are experimenting with different strategies to protect and build their wealth.
The DIY Generation
A defining characteristic of millennials is a “see-for-yourself” mantra. Growing up alongside the internet, this generation is the first to supplement the knowledge of elders with an additional, all-encompassing source of information. Through the web forums, Youtube videos, and Google searches, millennials elevate themselves as a tech-savvy, versatile, jack-of-all-trades group that prioritizes their skillset before seeking out that of another.
This reigns true across a broad spectrum, from auto maintenance to coding, from photography to personal finance. Millennials have embodied “Do it yourself”, and in doing so, they’ve established some additional security throughout their lives. When you procure your information, complete your project, or control your assets, you achieve an added peace-of-mind in having full control and understanding of every step of the process.
Millennials value that nobody else can take advantage of them when they elect to DIY. When it comes to finances, many have translated these values into curiosity with Bitcoin and cryptocurrency. As of September 2019, 20% of millennials have invested in digital assets.
Bitcoin: the Millennial Safe Haven
Bitcoin and millennials have a few things in common: transparency, security, and autonomy. Millennials want it; Bitcoin allows it. “Be your own bank” is an oft-recited slogan in the cryptocurrency space. And for good reason, when one invests in Bitcoin and other cryptocurrencies, they maintain complete and unyielding control over your assets. No financial institution can jeopardize that.
In 2008, millennials watched their families lose their homes, savings, and investments. They watched their jobs dissolve and their employers bankrupt. They don’t want to find themselves amid another financial crisis, and they don’t trust the banks to protect them the next time things fall apart.
Millennials are also unique in that they have the digital-knowhow their older counterparts lack. They recognize cryptocurrency as an interesting opportunity, and they have the savvy to use and understand it. Blockchain enables one to have full control over their finances. It ensures unwavering security for users to hold and transact it - far more perfect security than financial institutions can ever dream to offer.
Cryptocurrency is the ultimate DIY tool for hands-on investing, and millennials are jumping all over it.
Digital Gold for a 21st Century World
Of course, security and autonomy alone do not automatically translate to a worthwhile investment. There’s a big reason why millennials (and others) are buying Bitcoin instead of World of Warcraft gold: value.
Bitcoin matches many of the same qualities gold carries, hence its apt nickname as “digital gold.” Like gold, Bitcoin has a finite supply: only 21 million BTC will ever exist. In times of uncertainty or economic hardship, Bitcoin proves a worthy hedge against inflation, just like gold.
There is also some intrinsic value reflected in the work put in to procure it. Gold requires extensive physical mining operations, while Bitcoin’s miners represent a similarly robust digital process, where supercomputers race to solve complex mathematical operations.
Of course, both also benefit from some level of sovereignty. Bitcoin and gold alike are not burdened by the same level of regulations and restrictions assigned to stocks and bonds. (And between the two, Bitcoin offers far greater sovereignty!)
Not to mention, both Bitcoin and gold have demonstrated a significant, positive growth trajectory over recent years, a highly encouraging metric for any investment.
Historically, gold has been an integral component of any well-diversified portfolio. As the global economy shifts to a digital standard, Bitcoin similarly represents a strong asset to incorporate into one’s portfolio. Digital gold is here to stay!