3 Reasons Why Are Millennials So Obsessed With Cryptocurrency Mining
Cryptocurrency’s popularity and high returns has made it a hot topic of discussion among the investors. What was famous as the “fake coins” have now become a digital currency and each of these coins have a worth of over sixty thousand dollars.
The idea of bitcoin will be 10 years old in less than a year. It has started to create jobs, inspire investors to start businesses, and create hundreds of crypto-tokens with different purposes. If you are also looking forward to mining these digital coins, click this visit this site.
The group driving this trend is mainly millennials. And, while “bitcoin” and “cryptocurrency” are now everyday terms, we are only getting a glimpse of what blockchain technology is capable of.
Fintech is rising at the same rate as the generation. Traditional bank structures are being replaced by digital and branchless banks, which allow lightning-fast payments. Millennials have recently started to adopt the concept of “digital currency.”
As per a recent survey, 66% of millennials value bitcoins more than the share market. During the pandemic, digital currencies such as bitcoin are becoming popular income source due to the economic risk. You can read more about this here. In this article, we will discuss why millennials are becoming so obsessed with cryptocurrency.
Cryptocurrency And Millennials Are A Natural Fit
Cryptocurrency is a digital asset that may be used as a store of value and a means of exchange. This group of young people is known for their zeal for all things digital. Even when it comes to investing, most people would rather do it online or through an app than fill out long paperwork.
Cryptocurrency first began as a digital currency a decade ago, offering an alternative to the current financial system. Cryptocurrencies may only be bought, traded, exchanged, and stored digitally. In the field of investments, it now has proven itself as a new asset class.
The millennials’ need for instant joy goes well with the bitcoin market, which is open 24 hours a day, 365 days a year. You do not need to trade or invest in the asset during business hours. Because of these qualities, cryptocurrency as an asset class fits well into the millennial lifestyle.
However, there are three strong reasons for millennials to mine cryptocurrencies.
1. Returns are high and fast
Millennials are an aspiring generation. They are looking for instruments that would give high profits in a short time. Cryptocurrency is one such asset that offers high profits within a short time.
Since its launch in 2009, Bitcoin has gone up in value and has overtaken gold as the most valuable asset type. Bitcoin has risen by 400% in the last year alone. And the value of Ethereum (the second-largest crypto) has risen by 1,000%.
For example, say you had mined coins worth $1,000 at the start of 2023, the coins would now be worth $4,000. On the other hand, Reliance Industries Ltd is a well-known stock that has returned 30-34 percent in the previous year.
If you had invested $1,000 in RIL, it’d have grown to $1,303 today. Other assets, like Fixed Deposits and Post Office Deposits, offer only over 7% on average, which don’t even beat the market over time.
2. Adding To The Retirement Fund
Cryptocurrency is pretty unstable. The fact that its 1 monthly profits or losses can sometimes reach 100% of its original value, attests to this. As a result, the risk and reward are both very high. They, on the other hand, are an amazing fit for a millennial’s retirement fund.
To begin with, millennials are facing a hard time getting jobs in this competitive job market. In such a scenario, cryptocurrencies act as a boon. These are numerous success stories of crypto miners where they became “bitcoin billionaires” in no time. As a result, people are mining cryptos that will provide enough returns to ensure a great retirement.
Second, because they are the youth of today, they can take risks. They get more time to try out different assets and build investing experience. Also, the study shows that the pandemic has raised millennials’ risk more than ever before.
As per research, adding 1% cryptocurrency in a normal portfolio could lessen risk while increasing returns.
3. Alternative Investment In The Modern-day
Non-correlated assets are another meaning of the term “alternative investment.” The performance of alternative investments is unrelated to the growth of traditional asset classes like stocks and bonds. A majority of the countries like India, China, etc. have a rich history of investing in gold as an alternative asset.
But, gold is a physical object. Gold’s price has recently risen to new levels. Meanwhile, crypto is kept digitally, which reduces the need for storage, and it can be bought in fractions as low as $100. Virtual currency can be a good long-term asset for millennials. They are likely to stay stable and survive any financial crises that may arise in the future.
What Is The Safest Way To Mine Cryptocurrency?
Mining bitcoins is no longer a difficult job. Many cryptocurrency services or exchanges have been set up across the world to allow the common people to invest in cryptocurrency. Before mining, you should look for an exchange that features simplicity, security, and accessibility. There’s no denying it: investing your time and money in companies that are still in their infancy is risky.
People are right in their distrust of bitcoin, which is unlicensed by the government and has a history of wild price swings. The solution is easy, at least until the space becomes more stable: study all you can and then start mining some of these coins on a regular basis.
In countries like India, the majority of exchanges self-regulate to keep illegal activity on their platforms at bay. Some platforms have added KYC criteria to stop illegal users from visiting the site. While exchanges try to improve security, users are required to conduct their studies before investing.