It’s interesting to ponder a bitcoin future in regards to the impact it will have on financial transactions. Blockchain and Bitcoin has challenged banking and the way we transfer funds. What are things going to look like in 20 years?
It seems the youngest generation, at least in America, is not exactly a fan of crypto, such as Joff Paradise definitely is. In reality, this generation of those under age 21 or 23, with the vast majority 18 or under, are too young to care about much of anything. Too young to open a bank account with little to zero financial experience, no job or an entry level job, and living in their parent’s home does not exactly inspire interest in crypto. They are simply too young yet. Those that have their own money use payment apps or debit cards, but rarely write checks or have cash. While they may not care about crypto vs. fiat currency now – chances are when they mature a bit, they will. When Twitter, Instagram and the like blow up with new ATHs for Bitcoin this generation will take notice.
It is also much less complicated to invest in crypto than traditional markets. Bitcoin and altcoins can be purchase on a smartphone using an app in seconds and the Gen Z population is adept at navigating the process. Buying, selling, sending, receiving – all can be accomplished without ever stepping foot inside a bank.
The fact is, Gen Z is so young they don’t have families to feed, retirement plans to worry about, mortgages to pay, or parents with medical bills. There is an estimated $143 billion in buying power from Gen Z’s $463 bBillion in wages or income from business profits. While not a lot of money in the over all economy, it is a lot compared to the still-small cryptocurrency market. If bitcoin continues to rise in price, continues to gain more mainstream adoption, starts being accepted more widely, it stands to reason that Gen Z will use it more than any other generation – without thinking much about it. They will also be the new innovators for platforms, apps, and social networks that propel a bitcoin future forward.
Bitcoin is not something new them. It is something that has been around most of their life. They will be the ones who will take what Satoshi has started and carry it to levels that the Gen-Xers and Boomers can’t even imagine. Blockchain Capital conducted a survey of people 35 years old or younger and found over 25% of them would rather own Bitcoin than stocks. This number will likely continue to rise as more and more millennials come into the age of investing and the population of Boomers and Gen-Xers decreases. The transfer of wealth from Boomers to heirs could play a major role in the bitcoin future, as studies show many who inherit plan to invest in cryptocurrency.
Interest rates fell to 0% during the financial flop in 2008. Millennials just finishing up college found themselves in a financial mess. Earning little to no interest on their savings and paying out 25% on credit cards on top of student loans has changed the way they look at banks and lenders. Trust is big in the banking institute and millennials are starting to believe the system is rigged in favor of the financial companies. They are worried about their personal information getting hacked. The privacy of blockchain is becoming the answer they are looking for. Mistrust in the financial system is not just happening in the US it is worldwide. Will this generation be the ones that break away from the traditional banking system? Will they usher in public banking? Only time will tell, but it looks likely.
25% of wealthy millennials own some sort of cryptocurrency and numbers are showing 40-45% want to use cryptocurrency for their savings and retirement plans. This number will continue to rise as long as banks keep taking advantage of them. Blockchain is incorruptible and keeps a consistent record keeping the bank’s noses out of their business.
Over $150 billion is in a parallel economy and the the growth is unchallenged. Crypto is 7th in popularity for long-term investors which is 3 times higher than earlier generations. While Warren Buffett calls Bitcoin “a delusion”, young entrepreneur Elon Musk calls it “brilliant” and it’s safe to say younger generations put more stock into what Elon has to say than Warren.
Emerging technology takes time, as does the adoption of a new payment mechanism. For example, credit cards were first introduced in 1958 but it took 20 years to become used by everyone. Mass adoption of technology follows a curve, and currently using Bitcoin to send and receive payments involves about five steps. Those that become accustomed to using it quickly catch on, but it can be as daunting as it was to send emails back in the day until you get the hang of it.
Do you remember how many thought emails or the internet would never catch on? Probably the same percent that said telephones and motor cars would bomb.
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