The economy has exhausted today’s generation. It’s no longer about finishing school, earning a prestigious degree, landing a six-figure salary, and settling down. It is about creating your identity with your uniqueness. Today’s generation is striving to bring out the best in themselves, creating original content every day rather than succumbing to standards. With the social revolution taking place, all that matters is how qualitatively a service is being provided. And it became evident when cryptocurrencies came up. Cryptocurrencies sort of empowered the young and present generation to make their own money, while learning at the same time.
Are young people turning to crypto for wealth creation?
CoinDCX’s CEO, Sumit Gupta shared that in the year 2020, Bitcoin outperformed all other asset classes giving 200 per cent returns. This was an outcome of a growing interest in cryptocurrencies. And the investors happened to be under the age group of 25 to 40 years. Crypto seems to be the first asset class for many of these young people as they believe in the power the technology beholds.
So, here we are presenting 10 reasons why youth are getting drawn towards cryptocurrencies.
1. Freedom
You can do whatever you want, buy or sell them whenever you want. Investing in cryptocurrencies is not only limited to wealth creation but is also an act of support in creating a decentralised world where value is coming from everywhere. Cryptocurrency has given the youth a sense of control over their choices and how the money is spent. While amongst the speculations, across the UK, small clusters of youth-led projects are springing up to introduce their peers to blockchain technology and, in particular, its financial applications. Their mission is to upskill young people in cryptocurrency and blockchain-related professions, rather than just day trading.
2. Creativity
With cryptocurrencies, you can start a business, create online tutorial platforms etc. The young people are coming up with projects on cryptocurrencies. Two brothers Oscar and Barney Chambers involved themselves in multi-cryptocurrency projects. They came up with Veggiecoin, Brazio and Umbria Network. Initially, the brothers thought of the crypto world as some magical internet currency; a perception of naughty love and entertainment at the receiving end. They were introduced to the technical side way later towards the end of their university degree. Reckoning the 1990s a wild west the brothers are wondering if the present is anything but similar to the internet in the 1990s. The brothers believe that as the wild west fades away in the future, the crypto world will be the source of employment generation.
3. Independence
The pandemic situation has made unemployment evident for recent graduates. They are probably entering a bleak job market. Which seems an obvious reason as to why students get terrified of graduating. Cryptocurrencies can make one live on their own, as it gives financial independence. Many students are struggling to get good jobs in these current times. Gen Z happened to invest in cryptocurrencies and fortunately, it is giving them solace in the part that they will survive even if they don’t get employed immediately after graduation.
4. Knowledge is power
The more you search, the deeper it gets. Young people are not only indulged in the financial applications but also quite intrigued in knowing the technology, thus upskilling themselves to know more about cryptocurrency and blockchain-related careers. Youngsters have shifted their source of knowledge. They have switched to websites, YouTube, videos, online courses and sometimes peers. Cryptocurrency is a very cool place for people who have just completed their degrees. There are many prospects in the sector for those who are willing to work.
Since the point of universities is to get people jobs at the end of the day, Benton, operations lead of Encode Club, and co-founder of the Leeds University Union Cryptocurrency and Blockchain (LUUCAB) believes that most computer science courses should include a blockchain module. However, Emmanuel Young, a co-founder of LUUCAB who is now a freelance journalist covering cryptocurrency for BeInCrypto, believes that one of the most exciting aspects of cryptocurrency is that it stimulates intellectual curiosity and personal study.
5. Crypto is evolving everyday
Young people are playing the role of responsible citizens to understand the technology and analysing the influence of emergent technology on the environment. Students are engaged in organizations helping peers to get skilled in the field of blockchain and cryptocurrencies. The underlying purpose of the youth-led blockchain organisations promotes both blockchain and cryptocurrency technology education along with its applications. As academics are extremely important in a student-led organisation; it is also important to know what you’re doing when you’re doing it. If you’re investing in Tesla stocks, it’s better to know what Tesla’s doing rather than just buying them. The same goes for any new cryptocurrency project.
6. Help yourself and the world
On social media platforms, there’s a message about cryptocurrency being a chance to redistribute wealth. People who are familiar with cryptocurrencies and comfortable with the game of trading are gaining more money as a side hustle. It is something that everybody should be aware of. By putting an effort to understand the mechanisms, people who have traditionally been excluded from traditional wealth can take risks by attaining knowledge on the field; which will help them create wealth at the same time. Thus, it has instilled a sense of hope in many students. It has also fueled their desire to understand the subject comprehensively. Vitalik Buterin, representing the youth, and donating to COVID 19 relief funds is one such example we all can relate to.
Ethereum’s co-founder Vitalik Buterin has donated over $1 billion in crypto to the India Covid Relief Fund and a range of other charities https://t.co/aud79lXWrA pic.twitter.com/wiu9HaGfiJ — Forbes (@Forbes) May 12, 2021
Vitalik just rugged $SHIB and donated over $1 billion to the India Covid-Crypto Relief Fund 🐕👑 pic.twitter.com/nDXp62Vn61 — Monolith (@monolith_web3) May 12, 2021
7. Cryptocurrencies can’t simply be ignored
It is important to raise awareness about cryptocurrency and blockchain. Wealth gaps are being addressed by the youth. Youngsters are interested in learning about cryptocurrencies to educate those who are unaware of the idea so that the wealth gap can be narrowed elsewhere. The youth can address a lot of problems that have kept inequality alive for a long time. For example, People do have bank accounts, but investing in cryptocurrencies have made them set aside some funds that only is accessible only to them, thus making them feel empowered. They can manage it in whichever way they can. The young people expect everyone to have a backup plan in case things don’t function in our way in the political world.
8. You can buy anything
Right from buying quirky NFTs to satin-covered cushions, you can buy anything with cryptocurrencies. MetaKovan who bought Beeple’s NFT for $70,000,000, stumbled upon cryptocurrencies while learning to make websites and was blown away by Bitcoin. Despite facing criticism, he was inspired to adopt the blockchain world due to the worldwide frenzy surrounding Bitcoin.
According to MetaKovan, anything new is initially dismissed or turned into a joke subject. In the same way, Bitcoin was ridiculed. MetaKovan was compelled to try his hand at it because he thought it would succeed. He went on to say that everyone has prejudices, which irritates him because one must base one’s conclusions on what people do rather than how they look or where they come from.
His intuition led him to invest all of his savings and time in Bitcoin, making him a billionaire cryptocurrency investor. He made headlines when he purchased Beeple’s artwork. Metapurse, MetaKovan’s fund, is preparing to create a virtual world in addition to investing in cryptocurrencies and digital art. An act of supporting creators, artists, people barring age, gender and colour. Metakovan donated to the Covid relief campaign in India.
Pledging $100k to this. With @sandeepnailwal this effort is in good hands. https://t.co/o0VvSUsMsh https://t.co/jgv9rEvEuc — MetaKovan (@MetaKovan) April 26, 2021
9. Adopting minimalism
The more you get, the more you start to acknowledge life’s worth thus switching to a minimalist lifestyle. Ben Yu purchased Bitcoin but did not sell it. As the value of Bitcoin increased over time, he became a millionaire. At the age of 26, he accomplished all of this while living in a van.
Ben Yu said that he saved $50,000 by living in an RV in the centre of San Francisco for three years. As a result, he was able to purchase an island in the middle of nowhere. Ben lived on canned food that was manufactured a year ago or probably 40 years ago.
10. Younger generation can’t seem to get away with cryptocurrencies
There is a growing interest that seems evident as cryptocurrencies are no longer a taboo as far as investment in alternative assets is concerned. As Supreme Court in India removed the ban put by Reserve Bank of India (RBI), sign-ups has extended. Bitcoin outperformed all asset classes and attracted all the investors’ interest in terms of cryptocurrencies, often referred to as gold and hedge against inflation. According to Sathvik Viswanathan, chief executive officer of Unicoin, one of the country’s oldest crypto trading exchanges, the apex court ruling increased investor interest by five to ten times; including the contributed effort of the growing interest of the millennials. Vishwanathan further said that since March last year, there has been a five-fold increase in new customers signing up and providing KYC documents every month, while some of the good months do witness a ten-fold increase.
According to a survey conducted by U.S. Financial group Charles Schwab, 51% of millennial and Gen Z investors aged 18 to 37 traded or owned cryptocurrencies. Furthermore, 70% of respondents believe cryptocurrencies are a good investment.
Parents’ concerns and high risk in alternative assets
Even though cryptocurrencies are equally appreciated and criticised, there is this zone of young people who are being increasingly drawn to cryptocurrencies for making easy money; are quite inept with investing. This quality makes them highly vulnerable to an already high-risk investment. The elders seem too wary of their children becoming millionaires or making money out of something which is highly volatile and speculative. They are worried if they won’t learn the obvious lessons of hard-earned money and savings; and the children’s inability to analyse high-risk investment assets.
Owen Donley III, chief counsel, office of investor education and advocacy at the Securities and Exchange Commission says that investors who have been in the market for a long time understand that the potential for high profit is accompanied by a high level of risk. Elders are constantly suspicious because the younger generation may not have encountered it, and many do not seem to be aware of it.
The young people are totally aware of the repercussions
Learning more about alternate investment from non-traditional outlets, its knowledge has made the youngsters familiar with the world’s monetary system, inflation and its effects. A 20-year-old cryptocurrency trader, Ray, for one, has learned some valuable lessons from his investment losses. He has made thousands of dollars. Ray’s mother and also a teacher Mia Russell, claims that some of the young people she teaches see investing as a way to pay off debt. They are being drawn to crypto as a fast payout, one that could go wrong and cost a lot in taxes. On cryptocurrencies, Provence Intelligence, a cryptocurrency consulting firm, aims to encourage people to do their research and meet their own needs, rather than providing full 1:1 advice.
Wide-scale adoption and the environmental impacts of cryptocurrencies’ mining process is debatable in the context of climate crisis. Students are also critical of certain things. In terms of sustainability and scalability, there are a few good projects whose entire basis is built on this goal. They seem well aware that some things are more important than money, such as the environment. Young people are demonstrating that they can consider and contribute to shaping the future of emerging technology.