Industry News Evolution of Cryptocurrencies and Money for the COVID Generations

Evolution of Cryptocurrencies and Money for the COVID Generations

September 1, 2020

In 2019, months before the notion of pandemic became a household topic, numerous surveys showed that both Millennials and Generation Z (its adult members) are harboring a changing perspective towards cryptocurrencies. The members of these generations began developing a strong curiosity toward cryptocurrencies in general, even though most of them preferred to keep their core ideology on the side.

This ideology includes the notion that blockchain tech will change the modern world and the way it operates with fiat currencies. While many who believe in this notion would like to see others, especially young individuals, share this concept, they are still pleased to see that even ideology-free individuals are still very much interested in becoming users of cryptocurrency tokens and other services. Many different bits and pieces of news corroborate this fact. In the US, there has been a huge drive to purchase cryptocurrencies for exactly 1,200 USD, which points to people using their fiscal stimulus package to directly but bitcoin tokens.

Also, the number of adults in the US who own cryptocurrencies doubled in the first six months of 2020. Similar trends can be notices across the globe, covering developed nations just as much as countries like Mexico or even drastically underdeveloped regions. All this showcases a changing outlook towards cryptocurrencies and it appears that the younger generations are driving this change, although maybe not in a way that everyone would want in the established crypto community.

Pre-COVID-19 Studies

The exploration of the engagement of the younger generations with cryptocurrencies is nothing new. In the UK, one such exploration before the start of the global COVID-19 coronavirus pandemic showed that the Millennials who are affluent saw around one in five individuals investing in cryptocurrencies. This is some seventy times higher than the average general population where about 3 percent of individuals had any crypto investment. An additional UK poll showed that those aged between 18 and 34, which covers 10 years of the millennial generation and six of Generation Z had about 60 percent interested and familiar with bitcoin.

These numbers for the general population are 20 percent lower. Yet, at the same time, research in the UK, as well as the US, showed that most from this generation have a lot more faith in the traditional investment opportunities like bonds and stocks. This is why the data shows that many of those interested in cryptocurrencies are coin price dabblers, willing to make a quick buck, but not persons who are direct converts to the basic ideas and principles of cryptocurrencies and bitcoin.

Pandemic Catalyst

The global economic fallout from the COVID-19 coronavirus pandemic is staggering. In lost work hours, there is an impact of around 400 million full-time employment positions across the globe. There is a huge pile of deferred bankruptcies as well as government debt levels that are going to go over 100 percent of their national GDP. Similar to the Great Depression of the 1930s, the current pandemic will shape the decision made in the economic domain for decades to come.

All those decisions are not going to impact the Baby Boomer generation as much as the Gen Z and even more, Millennials. These two cohorts represent about 60 percent of the global population. They are clearly assessing and examining their options right now, especially in the light of the previous 2008 global financial crisis. Many are apparently deciding to go for cryptocurrencies and especially bitcoin.

Big Decisions

It might seem that those who are under 25 are predominantly occupied with things like having fun, esports, social media, and everything else that their generations find interesting on a daily basis. However, the truth is that many of them are very worried about their potential in the future economic layout. For the younger ones among them, these choices are related to their continuous education. This involves which school to choose and for what kind of profession to prepare. The older ones, most of whom are done with their education, worry about the next phase of their lives.

This includes finding a partner, starting a family, getting a home, and many more other things, all tightly connected to the financial outlook of their country. It is no wonder that most of them are extremely negative about the prospects of any of those elements, especially when it comes to economic support they can expect, either from their family and friends or from the government. Instead, polls suggest that most of them believe that the worst is only coming. Strangely enough, that makes them prime candidates for crypto adoption.

Benefits without the Ideology

The basic fundamentals of how individuals perceive the economy is changing. younger generations are more than ever aware of other means of financial and monetary exchange. These are now solely resting in the domain of cryptocurrencies. Yes, gold is still a preferred hedge option for many traders and investors. But for the young individuals, who are now well accustomed to things like financial apps, the notion of buying gold bullion is not the first idea they might come to.

Instead, it is much more likely that they will open up an app and purchase bitcoin and invest some of their money into a DeFi dapp. After all, all this is what many of their peers have been doing for years, and many of them have had good experiences. Sure, there are not many millionaires in their immediate social surroundings or people who buy Lamborghinis from their cryptocurrency investments. But, that one friend that bought bitcoin in 2015 probably is not worse off than any of his or her peers.

It is hard not to notice things like that in the midst of a massive social and economic upheaval, which many perceive as only starting to make its full impact. This is the main reason why so many younger individuals reach for cryptocurrency adoption and steer clear from any of the decentralized ideology. After all, they are not seeking to change the world and the way money is used. They simply want to find and some security and financial backing in at time very both are likely going to be very scarce.

Source: CoinDesk