Millennials saving for the future are more likely to put their money into cryptocurrencies, such as Bitcoin, compared to their older peers.
Picking Other Options Over Stocks
That’s according to a recent study conducted by Bankrate. It found that of the 1,000 interviews conducted between July 6th – 8th, 30 percent of American millennials (18-37 years of age) are more likely to favor cash investments.
This is compared to other generations. The figures show that the stock market is the preferred investment choice for Generation X (33 percent), Baby Boomers (38 percent), and the Silent Generation (44 percent). Notably, millennials chose the stock market as their second-most desired investment, whereas a fifth of everyone else selected cash.
When it comes to putting money away for 10 years that isn’t currently needed, there are six places respondents believe is the ideal place. Stocks came in first at 32 percent, followed by cash investments (24 percent), real estate (22 percent), gold/precious metals (9 percent), and bonds (8 percent). Interestingly, the sixth position was held by cryptocurrencies, such as Bitcoin, at 2 percent.
What is interesting is that millennials are much more likely to put money into cryptocurrency than older generations. 5 percent of millennials are fine with investing in cryptocurrency, but only 1.2 percent of Generation X and 1 percent of Baby Boomers are willing to do so.
Is This the Right Choice?
For many, putting money into cryptocurrencies may not seem to be the best idea. After all, the crypto market remains volatile with no protection if someone loses their money.
For others, though, digital currencies provide the ideal investment choice. Not only that, but looking long-term is the way forward for a number of people. This includes the likes of Barry Silbert, the founder and CEO of the Digital Currency Group. In his opinion, he sees a bright future for Bitcoin as an investment choice.
Also, Tom Lee, co-founder of Fundstrat Global Advisors, believes that Bitcoin will reach $25,000 by the end of 2018. At the time of writing, it is trading just below $8,000, at $7,769, representing a decline of 3.44 percent over the past 24 hours.
Over the last few weeks, Bitcoin has rallied in price. This is partly due to the possibility of an exchange-traded fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC). If such an approval does materialize, it would boost the crypto market up, permitting people to purchase the digital currency without needing to worry about regulation or trust.
Millennials are more likely to trust cryptocurrencies compared to older generations because they have grown up with them. Considering they are more in tune with things taking a digital form, it only seems natural that they would turn to a digital currency as an investment choice.
Do you think investing in cryptocurrencies is a wise choice? Let us know in the comments below.
Images courtesy of Shutterstock.
Tags: Bankrate, bitcoin, Generation X, investment, MillennialsRead original article
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