New Study Reveals That Millennials Prefer Cryptos And Don’t Trust Banks
Most millennials prefer cryptocurrency as a long-term investment vehicle, a recent study shows. According to the results, over 25 percent of respondents in the Millenials group are either using crypto or are holders.
Most millennials prefer cryptocurrency as a long-term investment vehicle, a recent study shows. According to the study, over 25 percent of respondents in the Millenials group are either using crypto or are holders.
The New York Post recently published research findings from a survey by Deidre Campbell of marketing firm Edelman, which involved about 1,500 individuals aged between 24 and 38. The enthusiasm within the group is high, with Campbell saying that:
“Anyone that has crypto tells me they wish they bought it sooner.”
In addition to the 25 percent already into crypto, a further 30 percent of those surveyed expressed that they have interest in cryptocurrencies, which they are either investigating or studying.
These respondents disclosed that they are willing to make short-term investments in cryptocurrency, bringing the total percentage of millennials using, holding or looking to invest in crypto to over 55 percent.
Millennials are skeptical of banks
A more significant percentage of the millennial generation does not trust traditional financial and banking institutions.
As an increasingly progressive generation that has grown affluent and is financially independent, millennials view legacy banking solutions as being inefficient and outdated.
According to researchers, the traditional banking system does not suit Gen Y, most of who are would instead find a support system adapted to young investors.
Lack of flexibility within the banking sector has seen most millennials lose trust in banks and prefer to have their money held elsewhere.
For example, a 2015 study by Harvard University’s Institute of Politics found that millennials believed Wall Street did not handle its customers well, with only 14 percent viewing mainstream institutions as being reliable.
At the time, Recon Capital Partners CEO Kevin Kelly said that the Harvard study proved that the emerging trends would put Wall Street institutions in a tough situation.
Kelly told the Street:
“Every day, we’re starting to see headlines still: Wall Street does it again, another Wall Street faux pas.”
The rise of fintech applications
Fast forward to 2018, the rise of cashless financial options has given impetus to millennials’ move away from traditional banks.
These alternatives, including cryptocurrency and fintech applications, are now trendy amongst the millennials generation.
Fintech firms are increasingly carving a large percentage of the financial market. For instance, China-based AliPay that was launched by Alibaba accounts for about 80% of the domestic market from online transactions.
Rigidity in the banking sector also makes crypto and fintech more appealing. In regions where most of the population is underbanked, use of crypto solutions becomes more attractive compared to a bank that requires clients to maintain high balances in their accounts on a relative basis.
Millennials may not fancy holding large sums of money an account at a bank when there is a fintech option that offers ‘better’ alternatives, more flexibility and increased practicality.
Cryptocurrencies have also become instrumental for the tech-savvy generation that finds it easier to use mobile phones to complete payments or to receive funds- all the while keeping a bank’s many demands at bay.
This has seen payment and remittance platforms like Coins.ph attract millions of users, with the Philippines firm netting over 5 million users. And many more millions rely on the platform in Thailand and Malaysia.
Crypto growth in major markets
Millennials in most of the countries with, extensive cryptocurrency usage are at the forefront of adopting and getting into crypto.
The US, Japan, and South Korea are among leading countries that have the infrastructure in exchange and trading platforms, payment processors, and mobile-based applications that are all part of the reason the number of millennials getting into crypto will likely continue to spike.