Why Are So Many Young Adults Investing in Bitcoin?
Over the last few years, Bitcoin (BTC) has gained some serious popularity. While you may already be in the loop, here’s something you may not know: Bitcoin has a massive number of supporters who are young adults. More young people are learning how to invest in Bitcoin nowadays.
Let’s begin by taking a look at Paxful’s 2021 data. The leading group to use Paxful were between the ages of 25 and 33, accounting for 32.76% of all traffic. Meanwhile, those 18 to 24 years of age accounted for 32.21% of all traffic. That means over 64% of all Paxful traffic comes from Millennials and Zoomers (known as Gen Z). A report from the Blockchain Capital Blog also showed that adults aged 18 to 34 have the highest awareness of BTC at a rate of 90%.
But we’re not here to discuss how popular BTC is, we’re here to discuss why BTC is popular among young adults. We’ll also discuss how to invest in BTC and capitalize on this trend. If you’re interested in learning why BTC has gained a young adult following, keep reading. We’ll break it all down for you so you can understand these two generations better.
The reasons why young adults invest in BTC
There are a handful of reasons why young adults invest in this cryptocurrency. Among them include current economic prospects and, of course, social media.
The first reason young adults are more willing to invest in BTC is that they’re more in tune with technology. For most Millenials and Zoomers, the Internet was invented before they were born. This means they have learned how to use it from a very young age.
Using crypto often means that investors need to be technologically aware. Unlike the Baby Boomer generation, Millennials and Zoomers usually don’t need to learn how to use the Internet or a new app to start investing. At best, they most likely just need to tap a few buttons and start their crypto journey in a matter of minutes. Older adults probably have a more challenging time adapting to crypto because of their late tech adoption.
It’s no wonder that younger people are at an advantage when it comes to BTC investing. Not only is it more accessible to them, but there’s also little to no learning curve.
Lack of trust in financial institutions
Another element to this generation’s rising Bitcoin adoption is based on young adults’ lack of trust in the system. Many of them were born during the economic difficulties of the 90s and experienced the Great Recession of 2007. During this time, Wall Street and many financial institutions were struggling to stay afloat. This put many people in severe financial hardships. Many Millennials and Zoomers were shaped by the aftermath of these harsh economic events.
In response, young adults now tend to stay away from Wall Street and centralized banking institutions and instead look for a new system that they can put their trust in. After all, BTC can mean hope and change for future generations.
On top of that, the standards for crypto entry are low, meaning that it’s more accessible for everyone. With BTC investing, young adults want to make a stand against a system that has bogged down their families for decades. They simply want to see a change and hope that BTC can be that change.
Younger generations may also be keener to invest in Bitcoin because they’re easier to break into compared to stocks or specific commodities like gold or oil. All you need to get started in crypto is a valid email address, an official ID (such as a driver’s license), and access to the internet.
Investing in stocks, on the other hand, can require a lot more effort. Often, you need to submit paperwork to open a brokerage account — and that’s just the tip of the iceberg. Then there’s investing in gold and silver, which can take even more effort since there are many different investment routes. This is a huge reason why young adults are so interested in BTC—it’s accessible for everyone and it’s easier to get into.
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A CNBC study showed that Zoomers and Millennials (ages 18 to 34) are 17% more likely to use research from social media for their investment ideas than the rest of the population. This statistic clearly shows that more young adults are using social media as resources to invest in BTC. In other words, social media has a significant effect on the younger generations when it comes to crypto investing. With its rising use, it only makes sense that social media plays a role in BTC investing as well.
While we’ve talked about how social media affects young BTC investors, it’s also important to discuss how FOMO plays a role. In the crypto world, FOMO, short for “Fear Of Missing Out,” is an emotion an investor feels when they’re worried they may be missing out on potential crypto investments.
With the rise of social media in younger generations, it’s no surprise that younger adults may feel crypto FOMO more strongly than their Boomer counterparts. Young adults may also experience more FOMO because of the BTC success stories they hear through social media.
The last reason why younger generations invest more in crypto is that they may be more financially literate. Over the years, as student debt in countries like the United States climbs to an all-time high, younger generations tend to be more eager to discuss money.
They have also been offered a great deal of financial education. According to a study, around 40% of Millennials have been offered classes on financial education. While only 16% of Millennials are considered financially literate, some other sources might suggest otherwise. Millennials and their comfort with their finances might indicate why they are so willing to invest in crypto.
Crypto-investment tips for young adults
Now that we’ve covered why younger generations are interested in BTC, let’s dive into investing in it. Here are some tips to keep in mind when first starting your investment journey:
Don’t fall for the hype
We understand that there can be a lot of hype surrounding BTC. However, when looking into how to invest in BTC, we recommend not acting out of your emotional impulses. That means not falling for FOMO (fear of missing out) tactics or any over-excitement around BTC. Keep a level head and make sure that all your BTC investments are sound. People will create hype through pump-and-dump scams, but just remember to look into each BTC investment to see if the excitement is warranted.
Do your research
When investing in Bitcoin, be sure to always do your research. Look up key phrases like “how to invest in BTC,” “BTC scams,” or “what is BTC.” This will help you learn more about BTC investing. Research will always be your friend and you can learn a lot through educational Bitcoin sites. Just take the time to sit down and do your due diligence when learning how to invest in it.
Last but not least, be sure not to overspend when you invest. We recommend researching how to invest in BTC and top investment tips from intelligence advisors. Financial advisors will typically use around 5% to 10% of your portfolio on more risk-heavy BTC investments. Keep this percentage in mind as you decide how to invest in it.
Research is your best friend
At the end of the day, always do your research if and when you decide to invest in crypto. We’ll repeat time and time again that research is your friend. It’ll not only help you understand BTC more but it’ll also help you make the right investment decisions. Talk to some Millennials, Zoomers, and experts on why they love BTC so much. Whatever you choose to do, there are plenty of ways to invest in Bitcoin..
Most importantly, there are many ways to understand why the younger generations are so keen to invest—there might be something to learn from them. Now you know how to invest in BTC; the sky’s the limit.