US Millennials Choose to Invest in Crypto, NFT and Metaverse Land
How not, this industry has grown so rapidly that it has succeeded in turning many people into billionaires in a very fast time. Beyond the expectations and common sense of someone (who is not familiar with crypto, of course).
US Millennials Are More Literate With Crypto, NFT and Metaverse
Not only crypto assets, the market that is booming and sounds crazy right now is the non-fungible token market (NFT) and the metaverse.
Both managed to grow very rapidly, even at a time when the crypto market was undergoing a correction as it is today. This appears to be a different world in the eyes of investors, as ownership of digital assets and those in the virtual world feel more real than what others think.
In a simple survey conducted by CNBC, it was found that millennials prefer crypto assets, NFTs or virtual land in the metaverse to spend their vacation money.
Among them is Cynthia Gentry, a 23-year-old resident of San Antonio, who plans to buy NFT of virtual land in the metaverse that she will give to her siblings and parents.
Of course, this purchase would cost him thousands of dollars, but it didn't matter to him as he saw the value of the virtual land increase over time.
According to him, buying such digital assets is not spending money, but rather a form of saving money but in a different asset.
In addition, Gentry also plans to buy NFT in projects such as World of Women and Crypto Coven because it has a noble goal, namely empowering women.
For him, this is the best gift for the people he loves because its value will continue to grow. The real investment of an asset that has no physical form.
Of course, there are many more millennials who look to digital assets other than Gentry, because they understand crypto and others better from social media like Twitter and even TikTok.
At a time when the older generation is still undecided about this new asset, millennials are quickly and unhesitatingly jumping into the industry to enjoy the benefits as early as possible.
George Walper, President of Spectrem Group, which conducted the survey for CNBC, said the new generation's growing interest in the nascent crypto market could prove to be a problem for wealth managers. He believes these traditional managers should rethink their approach to these upcoming investors.
“I don't believe the wealth management industry has realized that they need to think of this as a completely different generation. Most companies hope to ignore it. But millennial millionaires won't just grow out of crypto," Walper said as quoted by Cointelegraph.
The survey also highlights how the new generation is willing to take more risks with crypto than investing in traditional markets.
The survey revealed that 48% of millennial millionaires plan to increase their crypto investments while 38% plan to hold and only 6% plan to reduce their crypto exposure in the coming year.
Despite the surge in crypto millennial millionaires in the United States, Australia has also seen a 10% growth in crypto adoption over the past year.
The 2021 Independent Reserve Cryptocurrency Index (IRCI) surveying 2000 people found that crypto investment among Australians had grown to 28.8%, up from 18.4% in 2020.
Why Millennials Love Crypto Investing?
In addition, investment can now be done easily, namely only through a smartphone.
This ease of investing has certainly made many people start pursuing this investment activity.
Especially the millennial generation who are now mostly involved in the investment world, especially in crypto currency investments.
Investing in the midst of this pandemic is also an alternative solution or path for millennials who want to get additional or side income.
The choice of this crypto instrument was chosen because it has proven to be a safe haven asset and is more liquid.
So what actually causes millennials to really like investing in cryptocurrencies?
The following has summarized some of the reasons from various sources.
1. Mastering Technology
It is undeniable that technological developments are advancing rapidly over time. As a millennial, mastering the field of technology that is developing is something that you can do or even have to do.
Because this development makes millennials will compete for jobs in the future.
Crypto investment is now very easy to do just by using the application.
This is because there are already many platforms and applications that offer a variety of conveniences ranging from buying and selling transactions, registration, and even attractive feature choices.
2. Distrust of Financial Institutions
Many millennials avoid traditional financial institutions such as banks, central banks, securities, stock brokers, and investment managers, preferring to turn to cryptocurrencies.
This is a form of their distrust because they have witnessed the current financial system as inefficient and unfair.
In addition, the millennial generation also does not want to depend on traditional systems like their parents did.
Fear of inflation has also contributed to the interest among young people in crypto assets. In addition, the barrier to entry was not too much.
3. Affordable Budget
This is of course a special attraction, because usually investing in stock heresy or something else requires a lot of money.
Now with crypto, millennials can invest even with IDR 100,000. In addition, the benefits obtained are fairly large, but they must be accompanied by stock or knowledge of investing in crypto.
4. Easy to get information
Various information is now easily obtained through the internet. Especially millennials who can't seem to be away from their gadgets, making it easier for them to consume or receive interesting information about crypto.
The ease of receiving information and lessons about crypto makes them interested in the development of existing crypto investments.
Millennials can even learn crypto investing by watching videos, searching on specific sites, or even taking online classes.
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