Approximately a fifth of America’s Gen Z and Millennials own cryptocurrency but only 20% own real estate, the latest Policygenius 2024 Financial Planning Survey has found. The survey report asserts that Baby Boomers have “benefited greatly from housing wealth,” which now accounts for nearly half of their wealth. Boomers Least Interested in NFTs According to […]
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Okay Boomer: Millennials Prefer Bitcoin To Gold During Crisis
Bitcoin, gold, and other safe-haven assets began pumping this week following news that the United States carried out military drone strikes that killed a high-ranking Iranian official, in fear of a war brewing between the two countries.
However, Bitcoin is now up over 20% year to date, while gold has only surged just 3%, suggesting that millennials prefer a digital store of value over a physical store, much like the precious metal that Baby Boomers have relied on for decades.
Bitcoin Rallies 21% While Gold Grows By Just 3%
During times of economic uncertainty or global turmoil, the price of gold often rises, dubbing it a safe haven asset during times of crisis due to its limited supply. Bitcoin is considered the digital counterpart to gold, and share many of the same attributes such as overall scarcity.
Related Reading | Is Crypto Yet Another Millenial Luxury?
Gold has been in favor for much of human existence. The precious metal was among the earliest forms of currency, earliest forms of tradable assets, and even today is regularly traded across financial markets. Because of its longevity and familiarity – everyone knows what gold is and what its used for, and even understand its value – it’s a favorite amongst Baby Boomers.
Bitcoin, however, is relatively new, unheard of, and very much still misunderstood by the general public. While they may have heard of the first-ever cryptocurrency at this point, they’re unlikely to know how to use it, or what its reason is for existing.
It really should come as no surprise that millennials who have watched the old guard mismanage money and grew up alongside the internet prefer Bitcoin over more traditional stores of value.
Percentage Growth Doesn’t Match Capital Inflow, Gold Wins
While the crypto asset often does retrace and wipe out much of its value, it also has a penchant for going on parabolic rallies that have turned even a 0 investment into millions throughout its short, eleven-year history.
Following the events transpiring in Iran and abroad, both gold and Bitcoin rose concurrently, but the leading cryptocurrency has outperformed gold by a factor of 7.
But while this is indeed true, Bitcoin has rallied over 21% while gold brought in just 3%, the amount of capital it took to drive gold up 3% versus BTC 21%, is significantly higher.
Gold market cap ~,500,000,000,000.Bitcoin market cap ~5,000,000,000.
When gold goes up 3%, it adds 5,000,000,000 to its market cap. Yes, that's the whole market cap of Bitcoin.
And that's how gold is going to eat Bitcoin alive in the upcoming gold/Bitcoin bull market.
— Arthur van Pelt – Dragon Industries (@MyLegacyKit) June 26, 2019
Gold’s market cap is in the trillions, while Bitcoin’s is at around 0 billion. Back when Bitcoin’s market cap was 5,000 an economist said it took Bitcoin’s entire market cap to move gold just 3%.
So while Bitcoin certainly has outperformed gold in terms of percentage of gain, the amount of money invested into gold easily trumps the BTC market tenfold.
Related Reading | Analyst: Gold Bull Run to Eat Bitcoin Alive, Takes Entire BTC Cap to Move Price 3%
Bitcoin is expected to someday take over gold’s market cap and put the crypto asset’s market cap in the trillions of dollars. Should this happen, with only 21 million BTC, the crypto asset could reach prices well over 0,000 per BTC – which is exactly why millennials prefer Bitcoin over gold. The post appeared first on NewsBTC.
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Millennials Trust Bitcoin More than Warren Buffett’s Berkshire Hathaway
An average investor reaching young adulthood in the 21st-century trusts bitcoin more than a three-decade-old bullish stock.
So it says in a recent study conducted by Charles Schwab. The U.S.’s thirteenth largest banking firm studied millennial investors’ self-directed portfolios for the year 2019. It found that a majority of them had more exposure to a young bitcoin trust than the mighty Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A).
Grayscale, as the study revealed, surpassed the traditional stock with its over-the-counter, publicly-listed fund that holds bitcoin. Under the ticker GBTC, the fund registered profits of around 119 percent on a year-to-date basis. In comparison, Berkshire delivered a dwarfed 11 percent profit to its investors.
GBTC returns 119 percent gains in 2019 | Source: TradingView.com
The study further noted that GBTC remained absent in the list of top 10 investments picked by boomer investors. At the same time, Berkshire made it to the reputed index alongside Apple and Amazon stocks.
Generation Y Up for Bitcoin
Charles Schwab’s revelations closely followed what a survey conducted by Blockchain Capital had found in April 2019: That 27 percent of investors aged between 18 and 34 would purchase bitcoin over traditional stocks.
At the same time, 40 percent of participants found bitcoin more attractive than government bonds. 22 percent of them said they would buy the cryptocurrency instead of gold.
Another study conducted by Adamant Capital had concluded that millennials are the key factor behind bitcoin’s growth in the last decade. The Texas-based investment management noted that young investors would likely remain exposed to offbeat cryptocurrencies in the long run.
The least talked about but most important point is that Bitcoin is part of a broader social movement catalyzed by the global macro environment, political tensions and a coming of age millennial generation. Mark’s critique of the pitch is spot on imo https://t.co/nZcNUHp33m
— Phil Bonello (@PhilJBonello) December 13, 2019
Criticism
Not everybody agrees with the potential of bitcoin in assisting millennials to grow their wealth.
Certain traditional investors, including popular gold bull Peter Schiff, think the cryptocurrency will leave young investors in heavy losses – and that they should not flow with its ongoing hype-current.
“The good news is that all the Millennial Bitcoin hodlers who are about to get wiped out in Bitcoin are still young enough to make their money back,” Schiff tweeted. “They will also have a lifetime to benefit from the wisdom that comes from losing money and [learning] from your mistakes.”
But popular market analyst Rhythm Trader, a millennial himself, thinks otherwise.
The trader said his generations’ first impression of the legacy financial system was 2008’s economic crisis. He cited it as the core reason why bitcoin is poised to become the beneficiary of the so-called “Great Wealth Transfer.” Excerpts from his note:
“Millennials have demonstrated a strong trend of embracing the digital age with open arms while at the same time turning their backs towards the traditional financial system.”
Going by Charles Schwab’s latest study, the “Wealth Transfer” is taking place. Watch out, dear Buffett! The post appeared first on NewsBTC.
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Surprise! Millennials Embrace Bitcoin While Boomers, Gen-Xers Hold Traditional Wealth
A recent report from Charles Schwab indicates that Millennials are embracing bitcoin a trend that plays into a larger narrative of Americas generational wealth gap.nThe post Surprise! Millennials Embrace Bitcoin While Boomers, Gen-Xers Hold Traditional Wealth appeared first on Bitcoin Magazine.n
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Why Do Bitcoin & Crypto Make Sense for Millennials? Ex-Goldman Sachs Exec Explains
The viability of Bitcoin (BTC) and crypto assets in today’s ever-changing economy continues to swell, according to a former Goldman Sachs executive.
Related Reading: Is the Declining Global Economy Growth Fueling the Stunning Rally of Bitcoin?
Bitcoin and Crypto Just Make Sense
Legendary Bitcoin-centric podcaster Stephan Livera recently brought on Raoul Pal, a crypto-curious former executive of Goldman Sachs that now heads Real Vision, to talk investment.
True to the theme of Livera’ podcast, Pal took some time to explain his thoughts on Bitcoin. In one soundbite, which can be found in the tweet below, the economist explained that as it stands, the most popular asset classes make no sense for millenials with ten- to 20-year outlooks.
Here is @RaoulGMI on Baby Boomers, Millennials and Bitcoin. Baby Boomers were given a gift!
Full ep and transcript available here:https://t.co/zPQso3Ul34 pic.twitter.com/1auWfcAkyL
— Stephan Livera (@stephanlivera) July 30, 2019
Equities, he explained, are roughly at all-time highs, and are pushing extreme valuations for relatively little profit and potential. As Ray Dalio, a legendary hedge fund manager, explained earlier this year:
“There are a lot of parallels between now and the late 1930s. From 1929 to 1932 we had a debt crisis — interest rates hit zero. Then there was a lot of printing of money, and purchases of financial assets brought their prices higher.”
Bonds aren’t much better, Pal opines, drawing attention to the “virtually zero yields” — and negative yields in some cases — that debt deemed safe provides.
Even real estate isn’t attractive, with the prominent investor calling this asset class “unaffordable”, adding that it makes even less sense to purchase homes because they’re trading near all-time highs. Enter Bitcoin. Pal quips:
“So what the hell does a millennial do to save for your future, when almost all assets have negative imputed returns for the next 20 years, 10 years? And the answer is well, you take the optionality of cryptocurrency and Bitcoin.”
He went on to explain the rationality of why buying Bitcoin as a millennial (and under) makes sense. Pal remarked that nothing like digital assets provide “that risk-reward profile where you can be wrong but you do it earlier on, you’ve still got plenty of time to accumulate wealth in other assets too.”
It was added that buying Bitcoin now is like buying bonds and equities in 1982, which is prior to the absurd asset inflation bubble that has inflated since then.
The Generational Divide
What Pal doesn’t touch on but is still relevant is the nuances of investment tendencies of different generations. You see, baby boomers and older demographics have grown up in a world that pushed them to invest in stocks, bonds, and other traditional vehicles that historically netted strong returns in the long run.
This is changing with millennials and those younger. These younger demographics grew up with the Internet, video games, and the concepts of digital money that are behind Bitcoin, Ethereum, and other crypto assets.
Related Reading: The Music Will Stop: Could Bitcoin Rally Due To The Federal Reserve?
According to Messari’s Ryan Selkis, as millennials inherit trillion from their baby boomer parents over the coming decades, much of the money could find its way into digital assets.
Messari’s chief writes that if even 1% of this trillion floods into crypto, which equates to about 0 billion, BTC could find itself conservatively at ,000. This is another trend that makes Pal’s argument that much more powerful.
Recession Potential On the Rise; Buy Bitcoin
This isn’t the only reason why Bitcoin may be a logical bet. Over the past few months, Pal has begun to believe there is a rapidly increasing chance that a recession is on the horizon.
In a number of threads and episodes posted via his media outlet, the former Wall Streeter made it clear that he believes that the Eurozone is heading for rough waters, touching on the fact that European banks are in shambles.
While Pal hasn’t exactly touched on his thoughts about Bitcoin as an alternative to gold, many believe that when the recession hits, there will be a capital flight for the cryptocurrency, which many say exhibits the same properties as gold.
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Millennials 3 Times More Likely to Invest in Crypto Than Gen X Survey
n Cryptocurrencies are three times more popular among American millennials as a long-term investment as they are for Generation Xn
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US Global Investors CEO: Bitcoin is Great But Millennials Need to Learn About Gold
The CEO of asset management firm US Global Investors has given his opinions on the Bitcoin and wider crypto market, and how it relates to that of gold. Frank Holmes is of the belief that digital currencies are fast becoming an “alternative asset class”, just like the shiny, precious metal.
However, Holmes has apparently not fully sided with either when it comes to store-of-value assets. Unlike many in the pro-crypto camp, he remains a staunch proponent of the shiny, yellow metal.
Frank Holmes: Bitcoin has Bottomed and is Ready to Continue Climbing Again
CEO of HIVE Blockchain Technologies and US Global Investors, Frank Holmes, took a break from attending Consensus this week to appear on Kitco News. There, he opined on both the crypto and gold markets.
For Holmes, the signal that the ultimate bottom occurred in Bitcoin at ,200 was JP Morgan introducing its own currency, styled loosely on crypto, in February:
“They trash talked Bitcoin all the way down until February of this year when they released their coin. All of a sudden we had a bottom in Bitcoin.”
Looking towards the space’s future, the entrepreneur says that the increase in new wallets continuing over the course of the bear market should give the Bitcoin price a great base to built into “the next bull cycle” from.
For Holmes, the crypto market should recover much more quickly than other historic crashes. He stated that unlike the housing market collapse, the bear market of 2018 was not caused by overleveraging. This will further fuel Bitcoin’s rise to bone fide investment vehicle in the eyes of many:
“This [correction] can be a year, and we’re slowly climbing out of it, and [bitcoin] is becoming an alternative asset class like gold.”
When the segment’s presenter brought up Grayscale Investments’s recent #DropGold campaign and the presumed rivalry between the two safe haven asset classes, Holmes was keen to state to people that Bitcoin should not be seen as a replacement for gold.
![](https://www.newsbtc.com/wp-content/uploads/2019/05/gold-crypto-bitcoin.jpg)
Bitcoin has often been described as “digital gold”.
Seemingly irked by the suggestion that some people might be turning their back on the historic store-of-value in favour of gold, Holmes went on a somewhat bizarre rant about the work ethic of “ignorant millennials” and their desire to wage “rebellion against anything and everything” before stating:
“[Millennials] should do their homework, they should open up a history book on why gold is so significant… why the great ‘love trade’, that if you love your country you should have gold in reserve. If you have a crisis, your paper money goes down in tremendous value. Gold is what bailed out Britain, getting it over to Canada, and then trading to get weapons from America, it was gold that did it.”
Finally, the CEO touched upon the atmosphere at the Consensus conference occurring this week. He described it as “subdued” and that this was a positive sign for the market:
“People are still fragile, they don’t believe it. I think this is a positive sign for the cryptocurrencies all to trade higher.”
Related Reading: Bitcoin FOMO is Strong But The Bears Will Not Go Quietly
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Bitcoin and Crypto Has Introduced Millennials to Investing in Markets, Despite Fears
The digital asset strategist and director at VanEck subsidiary MV Index Solutions believes that Bitcoin and other crypto have introduced investing in markets to a “new generation of investors.”
While the executive didn’t explicitly call out millennials in his comments, data shows that millennials have gravitated more to crypto markets while showing a strong reluctance toward traditional markets such as stocks and real estate. However, the education and exposure Bitcoin and crypto provides could cause young investors to try their hand in other markets.
VanEck Exec: Bitcoin Created First-Time Investors, Provides Education
Crypto and Bitcoin’s meteoric rise in 2017 captured the interest of the mainstream media, along with the attention of millennials enamored with the convergence of technology meets investment vehicle.
Related Reading | VanEck’s Chief Strategist Eyes Multi-Billion Dollar Investment in Bitcoin ETF
The digital asset strategist and director for the MV Index Solutions subsidiary of VanEck – the firm behind the now infamous Bitcoin ETF proposal that was recently pulled due to the United States government shutdown – Gabor Gurbacs, believes that Bitcoin and other crypto have caused “many people learn about markets, investing, charting, fundamentals, gold, safe havens & other economic concepts for the first time.”
Thanks to Bitcoin and digital assets, I believe, many people learn about markets, investing, charting, fundamentals, gold, safe havens & other economic concepts for the first time. This is a phenomenal form of education & experience that will shape a new generation of investors. pic.twitter.com/KbGNl4DXQM
— Gabor Gurbacs (@gaborgurbacs) January 27, 2019
He calls the sudden interest in investing thanks to crypto a “phenomenal form of education & experience that will shape a new generation of investors.”
Millennials Fear Other Markets, Yet Embrace Crypto With Open Arms
Millennials for one reason or another, are more apt to invest in risky, unproven assets such as cryptocurrencies over traditional markets such as the stock market or real estate.
Data suggests that only 33% of millennials are investing in the stock market, as opposed to their older counterparts. As much as 51% of generation Xers and 48% of baby boomers have invested in the stock market by comparison.
The same can be said about another traditional investment market: the real estate market. Real estate purchases have been trending down year over year, thanks in part to millennials reluctance to invest in real estate, opting instead to rent.
In fact, only 48% – a record low – of millennials believe that buying a home is a good investment. Analysts attribute this lack of home buying in millennials due to entering the workforce late, often carrying significant student debt, and getting married and starting their families much later in life than their older counterparts. 21% of U.K. millennials also claimed they’d rather invest in Bitcoin than real estate.
Related Reading | Critics Say Bitcoin is Like Tech Stocks, Why Experts Disagree and it is More Like Gold
Over 82% of millennials suggest that their fear of investing was due to the Great Recession, where they witnessed their family’s and the public’s wealth evaporate into thin air over bank bailouts and the like.
Bitcoin was created out of the ashes of the Great Recession, and its aspirations align with millennials distrust in traditional finance. Millennials also grew up alongside the dot com boom, and watched the internet develop from a misunderstood and demonized technology – much like crypto today – become a mainstay of everyday life, so it comes as no surprise that millennials are welcoming to investing in crypto versus other markets.
However, given that crypto has exposed young investors to markets, charts, and more as Gurbacs suggests, it could help millennials become more comfortable with investing in more traditional means.
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Survey: A Quarter of Millennials Hold Crypto, Wary of Current Financial System
A big chunk of wealthy American millennials have either warmed up to cryptocurrencies or are considering embracing them, reveals a recent report.
Millennials with Money, a report by Edelman has found that 25% of American millennials, aged between 24 and 38, and earning 0,000 in individual or joint income, or owning ,000 in investable assets, are either holding or using cryptocurrencies. Also, another 31% are interested in using cryptocurrencies.
Financial System Designed to Favour the Rich and Powerful, Say Millennials
The millennials today are not too happy with the existing financial system, highlights the report.
Of, the 1,000 surveyed, 77% of affluent millennials and 65% of non-affluent millennials are of the opinion that the whole financial system is designed to be favourably biased towards the rich and powerful at the expense of ordinary people like them.
Three-quarters of affluent millennials fear that the global financial system will be hacked and their personal information will be stolen. Whereas, 58% of non-affluent millennials have the same opinion about the security of the global financial system. A whopping 77% of affluent millennials and 58% of non-affluent millennials also expecting another global financial crisis in the future.
The figures are not shocking for those she speaks with, said Deidre Campbell, Edelman’s Global Chair of Financial Services. In fact, millennials with crypto regret not having bought it earlier, she reveals, reports Yahoo! Finance.
With a significant majority of affluent and non-affluent millennials distrustful of the existing financial system, it is no wonder that cryptocurrency adoption has soared in the last few years. In fact, Bitcoin is believed to have been invented as a refuge from events like the economic crisis of 2008 when several large banks and financial institutions of the world failed.
Even at present, countries like Argentina and Venezuela are struggling with high inflation rates, which are driving their citizens to choose cryptocurrency over their fiat currency.
According to the report by Edelman, 74% of the respondents feel that technological innovations like blockchain contribute to enhancing the security of the global financial system.
Crypto Gaining Ground in the US
Cryptocurrency support across the world is increasing rapidly, as can be inferred from the fact that the number of blockchain wallets in the world had crossed 28 million at the end of September 2018. The citizens of the U.S. have been particularly active in embracing crypto and pushing for making it a part of the mainstream financial system.
In a recent poll conducted by the IT firm Clovr, it was found that 60 percent of eligible voters in the U.S. want cryptocurrency donations in federal elections to be legalized. Coinbase, a leading cryptocurrency platform has obtained a license as an independent Qualified Custodian by the New York Department of Financial Services (NYDFS), which shows that there is a demand for crypto infrastructure from institutional investors.
Wall Street giants Fidelity and Goldman Sachs also recently entered the market with their custody solutions. Boston-based Fidelity Investments has established Fidelity Digital Asset Services (FDAS), a subsidiary focused on offering products pertaining to digital assets such as Bitcoin and Ethereum. Goldman Sachs has partnered with Galaxy Digital to invest million collectively in BitGo, a cryptocurrency custody startup based in Palo Alto.
Featured image from Shutterstock.
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Meet Blockchain Report, The Crypto Show For Millennials
Due to the relative complexity of blockchain technologies and crypto assets, nearly every single person in this industry today likely had trouble understanding this technology when they first stepped foot in the cryptosphere. Although this issue is rapidly changing, some optimists believe that easy-to-digest, accessible crypto education resources can’t come fast enough.
Digital Multimedia Legend And Crypto Startup Tackle Education Scene
Crypto is inherently digital, as an internet-connected device is a must when interacting with this nascent ecosystem. As you are likely aware of, the millennials of today, are, like cryptocurrencies, digital beings, who are open to utilizing technology to better themselves and the world around them. Obviously, there is a lot of overlap between the aforementioned generation and crypto assets, resulting in mass adoption rates with millennials in comparison with ‘generation X’ and ‘baby boomers.’
But again, there is still a glaring issue with education, as even millennials, with all their technological prowess, may fail to fully comprehend how crypto works and why it should (and has) gained traction. And even the sites that offer such education today haven’t helped much, as there are some resources that are hard to access, while others are boring to read and sort through.
Meet the Blockchain Report, a newfangled, online show that intends to revolutionize how users, specifically millennials, digest information pertaining to this industry. As revealed by Forbes, the new show, which will be filmed in Santa Monica, California, is a collaborative effort between crypto information provider ICO Watchdog and What’s Trending, a world-renowned, Emmy-nominated digital multimedia startup that has garnered over three million active followers from across the globe.
The Blockchain Report will provide an informative look into cryptocurrencies, as aforementioned, through a five-minute segment that will air near-daily, save for weekends. As alluded to earlier, this isn’t any old foray into the cryptosphere, as What’s Trending founder Shira Lazar and Shawn Newsum, the CEO of ICO Watchdog, will evidently be able to meld their skills of media creation and crypto respectively to produce an attractive, well-rounded show to appeal to their audience’s needs.
The first episode will be hosted by social media influencer Taylor Nikolai, who is a famous Snapchat star that will hopefully tap into his social media prowess to connect with the viewers of Blockchain Report. Speaking on his aspirations for this project, which is evidently unique in its own right, the CEO of the cryptocurrency startup backing this project explained:
“As the blockchain and crypto space become more mainstream, we plan to bring viewers a quick look at the latest developments and important news each day so that millennials can become better informed about a space that is unnecessarily complex and fraught with misinformation.”
Kelly Curtis, a former Apple executive and banker at Merrill Lynch, alluded that the millennial appeal of the show is likely to garner traction. The former institutional investor stated:
“Millennials will be most affected by this type of currency during their times. Cryptocurrency and the underlying blockchain technology on which it operates, will go through a maturing phase that millennials will be most responsible for shaping so they will continue to be interested in information and trends that pertain to this space.”
Coinbase, crypto’s golden child, has also recently made a move to tackle education, introducing Coinbase Learn, a series of informative, well-designed web pages that highlight the technology behind certain crypto assets. Along with the pages highlighting specific cryptocurrencies, Coinbase has also done its best to produce content that aims to answer frequently asked questions from the common consumer, which include “what is Bitcoin” and “how can crypto make the world a better place.”
While there are still some hurdles for this space to bound over, namely volatility as pointed out by Curtis and a lack of informational resources, the younguns of this world still seem prepared to allocate time and capital to crypto assets. As reported by NewsBTC at a previous date, a survey conducted by eToro revealed that the younger the investor, the more into crypto they are. So despite their youth and relative naivety, this generation shouldn’t be counted out in the race for crypto mass adoption, which is a matter of when, not if.
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