They don't have so much time for it so that they make investment rather than trading and etc, because you know at young age they need to focus to something important, and that is school stuff.. Indeed if you don't have so much time to make research what are the other ways to have income with crypto currency of course you will prefer to follow the path of others especially if you can see a good return from it.
And you know investment with crypto become trending since the very first start, so its not surprising there are some young age doing the same way as well.. Infact its a smart idea they will have a good future in my personal opinion..
Topic: Why Do Young Investors Prefer Cryptocurrencies? - page 13. (Read 1464 times)
I believe this is because most of them are young and smart. Smart enough to understand the idea behind Bitcoin, smart enough to know how to operate it too. Unlike these older rich men who because they don't understand how Bitcoin works(or how to operate) have lost interest and are always discouraging others.
Probably young people are not smarter, they are just more open to everything new. They have more time to learn something new, they are open to more risky steps that can bring much greater profit than traditional investments. And you rightly said that it is easier for young people to understand what bitcoin is and how it works. They understand that bitcoin is not subject to inflation and it only gets more expensive over time. Bitcoin has a lot of volatility, but for long-term investors this will not be a big problem.
1.Bigger profit margins.It's all about greed and making more money...
2.Easier access,compared to the traditional finance,but traditional finance is also getting easier access,due to apps like RobinHood.
3.Cryptocurrencies are more appealing to the tech savvy people.Most young people are tech savvy,so they like new technologies and innovation.
4.Higher risk:reward ratio...
5.Having less trust in the traditional financial institutions,like banks,hedge funds,insurance companies,etc.
2.Easier access,compared to the traditional finance,but traditional finance is also getting easier access,due to apps like RobinHood.
3.Cryptocurrencies are more appealing to the tech savvy people.Most young people are tech savvy,so they like new technologies and innovation.
4.Higher risk:reward ratio...
5.Having less trust in the traditional financial institutions,like banks,hedge funds,insurance companies,etc.
I think that many older traditional investors are more cautious about cryptocurrency, young people are more adventurous, their thinking is active, and their ability to accept new things is faster.
the reason young investors prefer crypto, maybe because young people are now more familiar with the internet world, everything they do is through the internet, and young people now are already making money through the internet, so it's not surprising that young investors now prefer crypto..
I believe this is because most of them are young and smart. Smart enough to understand the idea behind Bitcoin, smart enough to know how to operate it too. Unlike these older rich men who because they don't understand how Bitcoin works(or how to operate) have lost interest and are always discouraging others.
Besides being smart, they are open-minded about something new that happens around them and they have a big curiosity about that new thing so they will find out what it is.If they can use their curiosity to search for more about bitcoin and try to invest in bitcoin, they can have a bright future that their friends can not imagine.
But that depends on how they learn about bitcoin because not many of them will have a big enthusiasm about bitcoin and will not think much about investing in bitcoin.
Many of them are thinking about having fun and not prepare their future and if they really do not do that, they will regret it in the future.
Not just open-minded but today they now have the option. Well, the young ones today can access financial services already without having banks. Even old ones who were left out with were experiencing financial exclusion before cryptocurrencies are likely to choose Crypto or Bitcoin than gold or silver.
Needless to say, the poor people from poor countries are now accessing financial services. If it weren't for Bukele, the Salvadorians won't be able to own some Bitcoin.
I believe this is because most of them are young and smart. Smart enough to understand the idea behind Bitcoin, smart enough to know how to operate it too. Unlike these older rich men who because they don't understand how Bitcoin works(or how to operate) have lost interest and are always discouraging others.
Besides being smart, they are open-minded about something new that happens around them and they have a big curiosity about that new thing so they will find out what it is.If they can use their curiosity to search for more about bitcoin and try to invest in bitcoin, they can have a bright future that their friends can not imagine.
But that depends on how they learn about bitcoin because not many of them will have a big enthusiasm about bitcoin and will not think much about investing in bitcoin.
Many of them are thinking about having fun and not prepare their future and if they really do not do that, they will regret it in the future.
It's pretty simple. Investing in crypto currency is the easiest form of investment without much regulatory procedures unlike the centralized government owned investment which requires excess documentation. For Crypto investment all one needs is just the patience to buy a coin and hold until it begins to appreciate
I believe this is because most of them are young and smart. Smart enough to understand the idea behind Bitcoin, smart enough to know how to operate it too. Unlike these older rich men who because they don't understand how Bitcoin works(or how to operate) have lost interest and are always discouraging others.
Why do young investors prefer cryptocurrencies? Or, to put it more plainly, why do young people like crypto speculation? In the public eye, the phrase “crypto speculation” is often associated with negative implications such as “radical”, “high-risk”, and the “ambition” for getting rich. However, the preference for cryptocurrency among the young seems to be unstoppable. According to the latest report released by Crypto.com, in January 2021, there were 106 million crypto holders worldwide, and the figure has surged to 221 million by August 2021, compared to only 66 million in May 2020. The doubling of holders during six months shows just how popular cryptocurrencies are.
https://miro.medium.com/max/2100/1*_eB144zWdYeNm5zo1ZCm2Q.jpeg
Why is this the case? The elder always tell young people to be patient, but what they don’t realize is that if young folks took the advice, they may never get the same returns, no matter how hard they work.
Here is a real-world example. During the past 20 years, house prices in China’s first-tier cities skyrocketed. For example, in Shenzhen, the average house price back in 2001 stood at RMB 5,500, which soared to RMB 60,000 twenty years later. On the face of it, the more than ten-fold growth spread over 20 years does not seem so impressive, but real estate investment is not simply buying and waiting. In 2015, house prices in Shenzhen grew by 40%, that is, within 12 months, a house originally valued at RMB 2 million is now worth RMB 2.8 million. Moreover, a house purchase is almost always leveraged, generally with a down payment of only 30%. In other words, the buyer only pays RMB 600,000 principal plus 12-month mortgage payments of less than RMB 700,000 in exchange for a two-million-yuan house which is now worth RMB 2.8 million. According to this calculation, the buyer makes a profit of 114%, instead of merely 40%. Yet, this is not the end of the story.
Easy real estate credits allowed these profit-makers to buy more houses by re-mortgaging their house for more loans (the price increase and the down payment) from the bank. Now, the buyer now only bears a loan of RMB 1.4 million for the RMB 2.8 million house. Through other channels, the buyer could borrow another RMB 1 million from the bank to buy a three-million-yuan house. In 2016, house prices in Shenzhen increased by another 20%.
By now, the buyer originally with a principal of RMB 600,000 owns RMB 6.8 million in real estate assets. Here is a rough calculation of his profit: Deducting the RMB 1.4 million mortgage (the first house) and the RMB 3 million loan (the second house), the buyer stands to make an earning of RMB 2.4 million, a 400% surge in two years. Though it sounds exaggerated, that was exactly what countless buyers and investors did during the last two decades of sustained real estate boom in China’s first-tier cities. Further, the surge in 2020 once again doubled the property price. Who says returns are always proportional to the risks?
In the face of sky-high house prices, young people living in first-tier cities may never afford to buy a house, let alone invest in one. When house prices rise, all profits will be reaped by big investors.
Apart from China’s real estate market, the same also applies to the US stock market. In the past century, old money has made huge profits in the US stock market. During the same period, the market also witnessed the rise of Warren Buffett. Can there be another Warren Buffett in the 21st century? Almost impossible. Essentially, the so-called winning track and rules for success are nothing more than dividends offered by a specific historical period.
Why do young investors prefer cryptocurrencies? One straight answer is that they have stopped playing by the rule set by the old money and invented a new game. That said, are cryptocurrencies the dividend the world offers to this generation of young investors?
Data is often the most authentic and reliable evidence. According to statistics from AssetDash, the 2021 market cap rankings of global assets are as follows:
https://miro.medium.com/max/2100/1*iJ-VO58xFGJmqV_46d7IJQ.png
As can be seen, Bitcoin ranked as the 7th most valuable asset, beating the young electric vehicle maker Tesla and the 20-year-old Chinese Internet titan Tencent. In comparison, it has only been 12 years since the creation of Bitcoin.
Established in 2015, Ethereum ranked among the top 20 with a market cap of more than $411 billion. It only took the crypto platform 6 years to outrank the global retail giant Walmart.
Other than the market cap, there are also rankings of the annual return of the major global assets in the past decade:
https://miro.medium.com/max/2100/1*GpaPKsF_YOnOFLPakmRf7Q.png
Bitcoin shot up by 5,500% and 1,300% in 2013 and 2017, respectively. In addition to the staggering annual growth, the 10-year performance of Bitcoin is equally impressive: In 8 years, Bitcoin topped the global investment markets with yields leaps and bounds ahead of all other assets. This cryptocurrency is slightly inferior to the large-cap stock market indexes and the Nasdaq 100 index of the United States only in terms of “no-loss” years and drawdowns. As for gold, the global safe-haven asset, you can barely find its name on the above list.
If you are still not convinced, let us look at the compound growth rate. As the world’s most valued stock, Apple is probably the finest listed company. Still, how did Apple perform in terms of the compound growth rate? On December 12, 1980, Apple went public. The market cap was $1,778 million at the end of its first day of trading. Since then, Apple’s market cap has grown to $2,655.2 billion as of September 9, 2021, which translates to a 40-year compound growth rate of 19.94%. As the ultimate beneficiary of America’s prosperity and the stock market boom, Warren Buffett frequently records the highest return among all investors. Similar to Apple, his compound annual growth rate stands at 20%. This means that in the conventional mainstream investment markets, the compound annual growth rate achieved by the best investor of the world’s greatest listed companies goes no higher than 20%.
In the crypto space, the compound growth rate of the most valued token Bitcoin stood at over 200% in the past 12 years, which is more than 10 times that of investments in listed companies.
From these data, higher returns are clearly why young investors prefer cryptocurrencies to the traditional mainstream investment market.
https://miro.medium.com/max/2100/1*_eB144zWdYeNm5zo1ZCm2Q.jpeg
Why is this the case? The elder always tell young people to be patient, but what they don’t realize is that if young folks took the advice, they may never get the same returns, no matter how hard they work.
Here is a real-world example. During the past 20 years, house prices in China’s first-tier cities skyrocketed. For example, in Shenzhen, the average house price back in 2001 stood at RMB 5,500, which soared to RMB 60,000 twenty years later. On the face of it, the more than ten-fold growth spread over 20 years does not seem so impressive, but real estate investment is not simply buying and waiting. In 2015, house prices in Shenzhen grew by 40%, that is, within 12 months, a house originally valued at RMB 2 million is now worth RMB 2.8 million. Moreover, a house purchase is almost always leveraged, generally with a down payment of only 30%. In other words, the buyer only pays RMB 600,000 principal plus 12-month mortgage payments of less than RMB 700,000 in exchange for a two-million-yuan house which is now worth RMB 2.8 million. According to this calculation, the buyer makes a profit of 114%, instead of merely 40%. Yet, this is not the end of the story.
Easy real estate credits allowed these profit-makers to buy more houses by re-mortgaging their house for more loans (the price increase and the down payment) from the bank. Now, the buyer now only bears a loan of RMB 1.4 million for the RMB 2.8 million house. Through other channels, the buyer could borrow another RMB 1 million from the bank to buy a three-million-yuan house. In 2016, house prices in Shenzhen increased by another 20%.
By now, the buyer originally with a principal of RMB 600,000 owns RMB 6.8 million in real estate assets. Here is a rough calculation of his profit: Deducting the RMB 1.4 million mortgage (the first house) and the RMB 3 million loan (the second house), the buyer stands to make an earning of RMB 2.4 million, a 400% surge in two years. Though it sounds exaggerated, that was exactly what countless buyers and investors did during the last two decades of sustained real estate boom in China’s first-tier cities. Further, the surge in 2020 once again doubled the property price. Who says returns are always proportional to the risks?
In the face of sky-high house prices, young people living in first-tier cities may never afford to buy a house, let alone invest in one. When house prices rise, all profits will be reaped by big investors.
Apart from China’s real estate market, the same also applies to the US stock market. In the past century, old money has made huge profits in the US stock market. During the same period, the market also witnessed the rise of Warren Buffett. Can there be another Warren Buffett in the 21st century? Almost impossible. Essentially, the so-called winning track and rules for success are nothing more than dividends offered by a specific historical period.
Why do young investors prefer cryptocurrencies? One straight answer is that they have stopped playing by the rule set by the old money and invented a new game. That said, are cryptocurrencies the dividend the world offers to this generation of young investors?
Data is often the most authentic and reliable evidence. According to statistics from AssetDash, the 2021 market cap rankings of global assets are as follows:
https://miro.medium.com/max/2100/1*iJ-VO58xFGJmqV_46d7IJQ.png
As can be seen, Bitcoin ranked as the 7th most valuable asset, beating the young electric vehicle maker Tesla and the 20-year-old Chinese Internet titan Tencent. In comparison, it has only been 12 years since the creation of Bitcoin.
Established in 2015, Ethereum ranked among the top 20 with a market cap of more than $411 billion. It only took the crypto platform 6 years to outrank the global retail giant Walmart.
Other than the market cap, there are also rankings of the annual return of the major global assets in the past decade:
https://miro.medium.com/max/2100/1*GpaPKsF_YOnOFLPakmRf7Q.png
Bitcoin shot up by 5,500% and 1,300% in 2013 and 2017, respectively. In addition to the staggering annual growth, the 10-year performance of Bitcoin is equally impressive: In 8 years, Bitcoin topped the global investment markets with yields leaps and bounds ahead of all other assets. This cryptocurrency is slightly inferior to the large-cap stock market indexes and the Nasdaq 100 index of the United States only in terms of “no-loss” years and drawdowns. As for gold, the global safe-haven asset, you can barely find its name on the above list.
If you are still not convinced, let us look at the compound growth rate. As the world’s most valued stock, Apple is probably the finest listed company. Still, how did Apple perform in terms of the compound growth rate? On December 12, 1980, Apple went public. The market cap was $1,778 million at the end of its first day of trading. Since then, Apple’s market cap has grown to $2,655.2 billion as of September 9, 2021, which translates to a 40-year compound growth rate of 19.94%. As the ultimate beneficiary of America’s prosperity and the stock market boom, Warren Buffett frequently records the highest return among all investors. Similar to Apple, his compound annual growth rate stands at 20%. This means that in the conventional mainstream investment markets, the compound annual growth rate achieved by the best investor of the world’s greatest listed companies goes no higher than 20%.
In the crypto space, the compound growth rate of the most valued token Bitcoin stood at over 200% in the past 12 years, which is more than 10 times that of investments in listed companies.
From these data, higher returns are clearly why young investors prefer cryptocurrencies to the traditional mainstream investment market.
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