Despite the worldwide epidemic causing havoc on all major economies in the world, the cryptocurrency sector has continued to thrive.
During this epidemic, several crypto businesses have formed in the field to meet the ever-increasing demand for Bitcoin and other cryptocurrencies. Buying cryptocurrency is no longer an obstacle. Click on the link if you are wondering how to buy bitcoin in Namibia.
The cryptocurrency market capitalization has just surpassed $1 trillion, owing to the rise of Bitcoin. Bitcoin, in particular, has been on a tear for quite some time and accounts for around 69 percent of total market value.
1. The Digital Economy Is Exploding
We live in an increasingly digital society, with technology accounting for the vast majority of economic development over the last two decades. This will only become worse in the future. Let me remind you that a decade ago, the global economy was worth $60 trillion. It is now $80 trillion. The digital economy accounted for half of that increase. 70 percent of Generation X and millennials use digital banking. Most digital banks are now supporting crypto wallets and trading.
2. Trust is dwindling
Security issues have arisen as a result of the digital revolution. Customer details for 2 billion individuals have been compromised as a result of breaches at firms such as Equifax, Target, and Visa. Not only must you believe that your data is secure with a corporation, but Pew Research studies reveal that confidence in government is at a 60-year low.
Cryptocurrencies solve the issue of distrust. In fact, let’s point out an intriguing correlation: bitcoin is prospering in other places where faith in governments is low.
People prefer to put their trust in crypto wallets and crypto trade exchanges instead of banks. The whole procedure is transparent and there is no government tax or fee.
3. The Millennial Generation
It is not just about following the trend, but there are a number of indicators that demonstrate millennials as a population is suited for cryptocurrency investment:
In terms of total births, millennials are the biggest generation in history, with 95.8 million births. They are highly educated, with 72 percent of millennials attending college, and better education leads to better earnings. It is true.
Millennials and Gen Xers will have a lot of money. In the next decade, disposable income will more than double from $3 trillion to $7.1 trillion at a compound annual growth rate of 9.1 percent. These generations, particularly millennials, will be the primary customers of large-ticket commodities such as homes, vehicles, and computers.
They will need banking! Over the next decade, millennials will account for 72 percent of all financial services purchases.
Millennials are keen to hold cryptocurrencies, and we hypothesize that they would choose to do so over bonds. According to a Harris poll, just 4% of millennials possess cryptocurrency, yet 30% prefer it over bonds.
And they have the means to invest in cryptocurrency at their disposal. With their crypto services, investing apps like Robinhood are getting a lot of attention. The app has 4 million users, and 25% of them use it to invest in bitcoin and other cryptocurrencies. Keep in mind that Robinhood just started its cryptocurrency investment platform a year ago.
4. Gold is ancient, but cryptocurrency is new
The Silent Generation purchased gold, which proved to be a dependable investment through the difficult periods of the twentieth century. Since then, that has not proven to be the case. They are passing along their gold assets and investments to their children, but it is unclear if we will appreciate gold in the same way that our parents and grandparents did. Bitcoin has been amazing in its survival since 2008, and the uptake by younger generations indicates early signals that they prefer it, despite the fact that it is not a store of wealth.
5. Geographic Diversification
Consider Asia. The East is responsible for many technical revolutions. Consider video games, mobile applications, and animation. In Japan, 14% of men hold some sort of cryptocurrency. In South Korea, 23% of the population is active in some type of cryptocurrency. Cryptocurrencies are gaining popularity in other parts of the world as well.
It has not been simple to invest in bitcoin recently, particularly if you bought into the excitement in 2017. However, it is crucial to note that bitcoin has suffered far larger falls than the one that has occurred in the last four months. At roughly $8,000 per bitcoin as of this writing, it has returned to its pre-parabolic ascent in the second half of 2017. Millions of accounts or digital wallets were created, with the majority of them holding less than $1,000. By the way, major investors and HODLers who have been in the game for years have done quite well.
If soaring crypto market prices have you thinking that it is too late to invest in cryptocurrency, know that this is just the beginning.
As bitcoin becomes more accessible to the general public, more retail investors want a piece of the asset class and are ready to pay a higher price for it.
Cryptocurrencies will become more popular as more nations strive to regulate the sector.