Around the world, there has been a rise in the number of people investing in cryptocurrency. Of the demographic, majority investors are in the age group of 18-35, the generation known as millennials.
Due to the privacy and anonymity that crypto market offers, exact information is not available. However, millennials prefer trading in top cryptocurrency Bitcoin.
The main reason millennials prefer crypto trading to traditional systems is because they have witnessed the 2008 recession. Many of them remember the time when their career dreams crashed as the economy and banks plunged. Being tech-savvy, they view Bitcoin as an internet of money and easily understandable system. While some millennials are creating crypto coins, some are investing in cryptocurrency, the rest are speculating.
Why Buy Bitcoin
Bitcoin is the most popular cryptocurrency and there are other coins that offer transparency, low fees, cashless transactions, and anonymity through decentralization. But, what makes Bitcoin different from the altcoins is that it also acts as an exchange, so all other coins are traded to and from bitcoin. If you want to buy Bitcoin in the UK, you can check out this step-by-step guide by Total Crypto.
Ethereum, Litecoin, Ripple, and others try to become the next bitcoin, but they have a long way to go. Almost 43% of trading is done in bitcoin. Here are the many reasons why millennials must be investing in bitcoin:
Bitcoin Is Highly Scalable
Bitcoin has already proved that it is reliable when it swiftly fixed the major outage that happened in 2013. However, bitcoin has been offering year long, reliable solutions ever since. Other digital assets like Ethereum and rest of the altcoins can’t claim to be completely reliable.
Scalability of bitcoin is also proved by:
- Lowered Transaction Fees – This is possible through transaction batching. Here, a large number of payments are batched together into a single transaction, instead of sending each payment in a separate transaction.
- Segregated Witness – Another upgrade is SegWit, which provides an additional network capacity of almost 100%. Right now, 40% network is using SegWit payments.
- Lightning Network And Bcash – Bitcoin Cash was created as an alternative, which can improve bitcoin development in the future. Using a lightning strike or network, users can make almost 1000 payments per day, without congesting the blockchain.
Bitcoin Has Seen Two Halvenings
Initially, there were nearly 7200 bitcoins created daily. We have already witnessed 2 halvenings and currently, 1800 bitcoins are created every day. This goes to prove how powerful bitcoin is. It gives an understanding of bitcoin’s monetary policy and predictable money supply. The last halvening was in 2016 and more halvenings are expected- the next one being in 2020.
Price Corrections And Rallies
Bitcoin’s growth has a cyclic nature that offers its users the best opportunities to buy. Recently, it hit its peak at $19,500 per bitcoin and price correction dropped it by 70%. However, it has later gone higher than its value before the rally. Currently, the bitcoin ecosystem is at its strongest. As Bitcoin becomes more mainstream, the value of bitcoin securities tend to accelerate.
Improved Privacy Protocols
Bitcoin has an edge over the other crypto coins as the top cryptocurrency and it offers full transparency. But, privacy retention needs improvement. Many protocol upgrades like Schnorr signatures and others can be increasingly seen in the future. Lightning network offers more privacy than regular transactions.
Not only the developed countries, but people around the world are also finding ways to go cashless. Digital payments, mobile transactions, and cards are becoming common in usage. Cash payments offer more privacy and traditional digital payments need much improvement in that regard. Crypto transactions, especially bitcoin can be a perfect solution to this, as bitcoin is least volatile and the securities get the regulators’ approval easily.
Nasdaq based ETN Bitcoin Tracker One and recently launched bitcoin futures at CBOE and others are the newest entrants in bitcoin securities. In the near future, we can see more institutional investors for bitcoin.
Bitcoin offers a profitable investment method with its cyclic valuation. It is always a good choice to buy bitcoins in the bear market, irrespective of the time and length. Millennials know that they earn gains if they buy when the price is below the all-time high.