On August 7, 2020, Investorideas.com released a report highlighting the growth that Bitcoin and the overall crypto market has registered in recent times. The startup company supplies market info to investors with a focus on the crypto and blockchain sector.
As per the report, millenials and institutional investors are behind the enormous surge in prices currently being experienced in crypto markets. They are also responsible for the massive growth in both acceptance and interest in digital assets.
Bitcoin, in particular, has emerged as a hedge against traditional money and finance. A recent Forbes report released on July 16 highlights this fact, noting that institutional demand for BTC is rising amid the ongoing Covid-19 pandemic.
Forbes noted that crypto-asset manager, Grayscale, had registered its highest-ever quarterly investment inflows. The numbers stood at approximately $905.8 million for Q2 of 2020, marking nearly double inflows from the previous quarterly high of $503M in Q1 of the year.
Bitcoin also holds the top spot as Grayscale’s most popular asset, accounting for 83% of the total investment.
That said, the New York-based investment company Grayscale also reported a substantial interest in altcoins, with demand for its Ethereum Trust hitting an ATH as it accounted for nearly 15% of total investment inflows in Q2 of 2020.
Millennials to Herald the Era of FinTech
Along with institutional traders, the millennial generation has a major role in revolutionizing traditional finance as it drives Bitcoin adoption.
An online poll conducted in 2019 revealed that 59% of millennials had a positive opinion about Bitcoin. Additionally, young folks aged 18 to 34 were three times more likely to be acquainted with BTC than those over 65.
Matt Luongo, CEO of Thesis, noted that millennials are adopting BTC more widely as a long-term investment vehicle as compared to any other generation.
Luongo argues that millennial finance is founded on the capacity of emerging tech to overhaul how the traditional monetary model works permanently.
He credits the millennials for leading the charge in search of alternatives to traditional banks and brokerage platforms. The Thesis CEO concluded that cryptocurrencies would be key to millennial finance in the coming months and years.
Surging interest in crypto among the youth is attributable to trading platforms such as Robinhood and Wealthfront. These platforms allow ordinary people to invest in crypto-assets and earn high yields easily.
Bitcoin Adoption Feels Natural to Millennials
Perhaps the main reason millennials are switching towards Bitcoin to serve as an investment vehicle is that they grew up with the evolution of the internet and prefer to pay by digital wallets and online banking.
Therefore, BTC, which is the digital world’s main currency, seems far more natural to a millennial than traditional fiat currency.