Everyone knows all too well that the cryptocurrency market is fluctuating like a roller coaster.
Prices since last year have seen highs and lows—some extreme—and investors have been left scratching their heads on which way the pendulum will swing next. Overall, however, cryptocurrency investments are on the rise, thanks primarily to millennials who are enjoying the ride.
At SegWit1x’s (BTC) peak, the price was almost $20,000 in December. Now, the coin is trading at around $8,100 after falling below $7,000 just a couple of days ago. It lost more than $100 billion of its valuation since last week alone. Other cryptocurrencies haven’t performed well, either, and the overall market cap fell more than 50% since the ball dropped on New Year’s Eve. After reaching a high of $830 million, it has now dropped to $366 million.
However, the extreme slide hasn’t deterred millennials, who feel that cryptocurrency investments aren’t as intimidating as traditional investments, or investing in the stock market. The move toward digital currency investments is being fueled in part by the 2008 financial crisis when $14 trillion was lost. Millennials saw their parents and siblings lose more than 50% of their wealth, leading them to look for alternative investment mechanisms. The timing for the introduction of cryptocurrency couldn’t have been better.
Those between 18 and 39 years of age are now less likely to invest in the stock market than did previous generations. Only one-third of millennials have put some level of confidence in the traditional markets, compared to 51% of 36 to 51-year-olds. Baby boomers sit somewhere in the middle with 48% of people between 36 and 51 years of age willing to take a chance on what they view as a risky stock market.
BTC, the digital currency that set everything in motion, came into existence after the financial crisis of 2008. It was a way for individuals to exchange money without having to rely on big banks, and it turned out to be a game changer. Twelve percent of millennials have indicated that they would only invest in cryptocurrency if they were given $5,000. Only 3% of people aged 45-64 would do the same.
As with any investment, there are always risks. While cryptocurrency is an ideal choice for some, specialists still caution against dumping everything into the volatile market. They recommend that millennials, or anyone else, only put in what they feel they can comfortably risk and, in the worst case scenario, lose.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.