In a pioneering blockchain capital blog, Bitcoin (BTC) was named “demographic megatrendAnd while new technologies tend to take a path of spreading from younger to older generations, there is another thing that is driving the adoption of cryptocurrencies among millennials: The FIAT money-based economy has failed.
The demographic megatrend
An online survey conducted at Harris in April 2019 found this People ages 18 to 34 were three times more likely to use Bitcoin than people ages 65 and older, and twice as likely as people aged 50 to 64. They surpassed all ages in terms of familiarity.
It was even more surprising that 59% of millennials rated Bitcoin as a fintech innovation. The population rose in front of the second most enthusiastic group (35-44 years), almost twice as tech-savvy as older working generations and three times as positive as pensioners.
Not surprisingly, younger generations are more enthusiastic about cryptocurrencies. Everett Rogers’ diffusion theory of innovations describes how new innovations are adopted.
According to Rogers, innovators and early adopters are generally urban, educated, socially active and young.
But there’s one more thing that drives cryptocurrencies in the arms of millennials: the economy.
The most difficult hill in history
Millennials are a generation that has been shaped by recessive forces. As employment levels have dropped to 2000 since the COVID-19 pandemic, millennials who have already had one recession after September 11th and another after the global financial crisis in 2008 have Now they’re facing another episode of what the Washington Post calls “Slower economic growth since the inception of the labor force than any other generation in US history“”
For the oldest group of the millennial generation, slow growth and recovery in unemployment determined their previous working lives after the global financial crisis. The recession that will result from the pandemic this year will now determine the entry of the youngest group of millennials into the labor market. According to the Washington Post:
“Millennial employment declined 16 percent in March and April this year. […] This is faster than Generation X (12 percent) or baby boomers (13 percent). “
Poor employment prospects and slow wage growth have shaped the working life of an entire generation.
Even before COVID-19 hit the American economy, a study from last year found that:
“All the important milestones in life – marriage, children, home ownership – came much later for millennials than for the previous three generations, for which we have comparable data.”
The St. Louis Federal Reserve found that since the Great Recession began, old millennials “the only generation left behind between 2010 and 2016“”
With the effects of COVID-19, which they will be hitting again soon, the generation least prepared for another recession has zero net worth.
The thousand-year enthusiasm for cryptocurrencies is a function of the greatest risk aversion and technological knowledge of young people. But it’s more than that. L.The millennial generation could see cryptocurrencies as an alternative to a volatile economic structure that has repeatedly failed.
Statistics released recently by BlockFi led the decentralized financial operator to conclude that “Millennial and Gen Z ownership of cryptocurrencies will create generational wealth for Millennial and Gen Z families”.
Citing data from Charles Schwab for the fourth quarter of 2019, BlockFi found that the publicly-traded Bitcoin exchange fund in Grayscale is one of the largest holdings of millennials stocks only behind Amazon, Apple, Tesla and Facebook. Wasn’t in the top 10 post-war generation.
Encouraged by recessions and unemployment, the millennial generation has faced most of the difficulties caused by the economic slowdown. These difficulties include the inability to recover during periods of expansion.
So it’s no accident that The demographic group that is most likely to be the first to launch new innovations is also the one most in need of a way to escape the economic freedoms that cryptocurrencies can grant.
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