12-09-2019 icon

Millennials Choose to Invest in Bitcoin Over Netflix Stocks

By calvin

A recent report, published by investment management firm, Charles Schwab shows that more millennials choose to invest in Bitcoin (BTC) than in the shares of listed companies like Disney and Netflix.  

Millennials Invest in Bitcoin

The report shows that in Q3 of 2019, investments in Bitcoin by millennials surpassed their investments in top companies such as Microsoft.

The SDBA Indicators Report provides information on data collected from 142,000 retirement plan participants. The participants had balances between $5,000 and $10,000,000. The report shows that Generation X investors constituted 42% of the participants. Baby Boomers and Millennials constituted 39% and 13% respectively. 

A survey published on 17 July 2019 showed that millennials are 3 times more likely to invest in cryptocurrency than Generation X. In the nationwide Bankrate survey, it was found that 9% of millennials chose cryptocurrency as their top long-term investment option. 4% of survey respondents picked cryptocurrency as a top choice for a minimum 10-year investment. 31% of millennials have expressed an interest in owning cryptocurrency. 

Generation Z More Conservative

Business Insider’s survey on cryptocurrency purchasing habits reveals that 26% of Generation Z were likely or extremely likely to purchase cryptocurrency. 

“The reinvigorated market could cause some of the teens in the survey to rethink their position, and it may spur the 26% who said they were somewhat likely, very likely, or extremely likely to purchase cryptocurrency to pull the trigger.”

Despite the bear market, cryptocurrency adoption in 2018 doubled as adoption exceeded 139 million with 35 million identity-verified users. The year before, users of cryptocurrency quadrupled. 

Unlike Generation X and millennials, elder generations favour mainstream investments in companies like Apple, Amazon, and Berkshire Hathaway. 

Rising Interest in Bitcoin

Millennials have played a significant role in transforming the alcohol and automotive market. As their incomes increase, they may play a similar role in transforming the cryptocurrency markets as demand for Bitcoin surges. 

Fundstrat CEO Tom Lee says,

“This is a millennial story. The average millennial is 25 today. The boomers were 25 in 1982, so what did the boomers drive from 1982 to the peak population of the boomers, which was ’99? …Millennials have great interest in digital businesses, social media and Bitcoin and the millennial population is not going to peak until 2040.”

Analysts suggest that Bitcoin has a strong risk-return profile. As an asymmetric investment, it provides millennials the opportunity to gain from the wealth share of other generations.