- Interest in cryptocurrencies grows after value of Bitcoin rises
- One third of young people ‘seriously considering’ investing
A British study of investors has revealed that millennials are opting to take a gamble on Bitcoin instead of choosing traditional investments such as property and stocks.
The London Block Exchange report suggests one in three under-35s owns or plans to own a cryptocurrency investment portfolio, while 57% of the over-55s say they will not be investing in Bitcoin or similar digital currencies.
This interest in the blockchain currency has suddenly grown thanks to the rising value of the coins. Bitcoin’s value has exploded in 2017, with a single unit now worth as much as $17,500.
This is great news for investors – but there is always the risk that the bubble will burst. Millennials seem far more willing to make that gamble than the generations before them.
Bitcoin is now taken seriously by investors
Bitcoin, and counterparts like Ethereum and Litecoin, are digital currencies which are generated through a process called ‘mining’. Mining requires a computer with an internet connection, so almost anyone can carry it out themselves.
The computer’s processing power is used to search for pieces of code (the Bitcoins), and these code fragments can be traded and bartered with just like a traditional currency.
The number of Bitcoins is finite, but there are many more coins still to find. The value of the coins is extremely fluid, with a single Bitcoin being worth as much as the market is currently willing to pay for it. In 2010, a Bitcoin was worth just $0.003.
In 2017, that same coin is worth $17,500 (at the time of writing).
This has prompted investors to start looking at Bitcoin seriously – and that wave of interest is pushing the value of the coins up, attracting even more investors to the cryptocurrency table.
Of course, the Bitcoin bubble is likely to burst at some point – rates could even decline to 2010 levels, deeming investments worthless – but for many, this is a risk worth taking.
Young people quick to embrace digital assets
The study for LBX was carried out by Opinium Research, with 2000 investment holders surveyed. While more than half of respondents aged 55 or over said they had no interest in Bitcoin assets, close to 1 in 3 of those aged 18-35 showed a strong interest in the coins. 5% already hold some form of Bitcoin portfolio, 11% say they will definitely invest in the currency before the end of next year, and 17% are “seriously considering” a Bitcoin investment in 2018.
If these figures come to pass, digital assets will surpass traditional assets including bonds, gold and gems, and property.
“This study underlines the gulf between the younger generation’s view of money and that of their parents and grandparents, who had assets perform so well for them in pensions or property,” says LBX founder Benjamin Dives.
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