November 13, 2018 AtoZ Markets - Millennial investors still prefer cryptocurrency as their long-term investment, and the number of enthusiasts is expected to expand more over the time. Mistrust in banks, in addition to inefficient banking systems, stood behind pushing those to the crypto route.
Millenials' attitude to cryptos
Endelman, interviewed 1000 affluent and 500 non-affluent millennials, along with 500 affluent from their predecessors aged between 39 to 52. The affluent millennials were defined as a group of 24 to 38 individuals, who make $100,000 alone or in joint, or have around $50,000 in investable assets.
According to Campbell's study, millennial investors prefer cryptocurrency as their long-term investment. In her report, Deidre Campbell stated that all crypto keepers said that they " wish they bought it sooner”. The study revealed that one out of four millennials is already using digital currency or obtaining it. Around 30% of the interviewees intended to consider crypto for the future investment. Over 55% of respondents stated that they already invested into cryptos or have plans to do.
Why do banks fail to gain millenials' trust?
One of the reasons for the growing popularity of digital currency is that most of the young people do not trust banks. A Facebook survey, which was carried out in 2016, showed that only 8 percent of millennials trust financial institutions. Harvard Universities Institute of Politics conducted research in 2015, revealing that only 14 percent of millennials trust in Wall Street, believing that the aforementioned exchange “do the right thing” for customers. Such attitude, according to Kevin Kelly, the CEO or Recon Capital Partners, might “definitely be a problem for Wall Street".
The main reason for the growing mistrust in banks might be inefficient, outdated banking systems, not applicable to the young investors. For example, in the Philippines major banks require both residents and citizens to store more than $2,000 as a fixed balance in bank accounts, making usage of a banking service unavailable for a large portion of the country. In such situation, the fintech companies, like Lhuiller and Palawan are becoming more popular among regular users.
In addition to the distrust of financial institutions, the increasing popularity of cryptocurrency can be attributed to the lack of physical banks, in a particular regions. The growing awareness caused the value of the fintech industry to increase. AliPay in China and the fintech platform of Alibaba have been recently valued at more than $150 billion in the market.
Another reason for the growing popularity of cryptos is the reduced dependency on banks. Users can send and receive payments with mobile phones. Another cryptocurrency trading platform, Coins.ph, the largest in the Philippines, secured more than 5 million users in the Philippines alone, with millions of users in Thailand and Malaysia. The users of Coin.ph’s can “access financial services such as cross-border remittances, purchasing digital currencies, topping up their beep stored value card, paying bills and buying ‘LOAD‘ (mobile promotional networks) – all without requiring a bank account,” as CCN stated.
Crypto popularity in the US, Korea, and Japan is growing
After the South Korean government recognized the crypto exchanges operating in the country, it started to encourage young people to turn to the blockchain industry. A number of millennials using cryptocurrency were expected to increase in the U.S, South Korea, and Japan. These are the major crypto markets, which have established the most prominent cryptocurrency exchanges.
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