Why Do Millennials Prefer Crypto Over Banks?

The Crypto Council for Innovation (CCI), a trade association supported by firms like Coinbase, Paradigm, and Fidelity Digital Assets, has conducted a survey to find out how young people feel about cryptocurrencies. According to the poll, a candidate’s position on cryptocurrencies could have an effect on the results of the US midterm elections.

According to the CCI study, a considerable percentage of respondents support cryptocurrencies and want to see them recognised as a significant and legitimate part of the economy. The survey indicates that young people are particularly interested in cryptocurrencies. 

The CCI polled 1,208 people between October 8 and 10 to find out more about their views on cryptocurrencies. The study found that 13% of respondents own cryptocurrencies, more than the 5% of respondents who hold bonds and on par with the 16% of respondents who own equities and the 12% of respondents who own mutual funds.

The political affairs senior strategist for CCI and former Colorado senator Cory Gardner believes that this group of HODLers could have an impact on the 2018 elections.

The majority of Latino and African American respondents, according to the research, said credit unions and cryptocurrencies were preferable to banks.

2 Major Reasons why crypto?

Quick and high returns

The millennial generation is very aspirational. They look for investments that produce significant returns in a short amount of time. While few assets produce big returns rapidly, cryptocurrencies are an exception.

Cryptocurrencies have increased in value since its launch in 2009, surpassing gold as the most valuable asset class. With the exception of 2018, Bitcoin, the most well-known cryptocurrency, has historically outpaced the market. 

Bitcoin has increased by almost 400% just in the last year. and Ethereum, which is currently the second-largest cryptocurrency, has grown by 1,000%. 4

For instance, your $1,000 investment in Bitcoins at the beginning of 2020 would now be worth $4,000, thanks to inflation whereas Reliance Industries Ltd, a well-known stock, nevertheless, saw a return of 30.34% during the previous 12 months. Consider investing $1,000 in RIL; it would now be worth $1,303.

The average return on other investments, such as fixed deposits, post office savings, and so forth, is only about 7%, which, over the long term, does not even outpace inflation.

A cutting-edge alternative investment

Non-correlated assets can also be used to define the phrase “alternative investment.” In other words, the success of alternative investments is not influenced by conventional asset classes like stocks and bonds.

In India, we have a long history of using gold as a supplemental asset. Gold, however, is a tangible asset. And recently, the cost of gold has skyrocketed. Cryptocurrency, on the other hand, can be held digitally, negating the need for additional storage, and you may purchase it in fractions for as little as $100.

Since millennials are expected to be resilient and weather any impending financial crises, cryptocurrency can serve as an alternative investment for them over the long term.

Opinions of Respondents

45% of respondents said they wanted lawmakers to “see cryptocurrency as a significant and genuine element of the economy,” in contrast to 36% of respondents who wanted to see it “as a vehicle for fraud and abuse,” and 52% said that cryptocurrency needed stricter regulation. However, the difference in opinion between proponents and opponents of cryptocurrencies is not influenced by political allegiance.


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