Cryptocurrency is a decentralised digital asset that has its own set of pros and cons. The advanced technology provides some of the most reasonable applications for every firm, however, dissuades investors to invest due to its highly volatile nature, resulting in fluctuating market trends. One of the most prominent cryptocurrencies, bitcoin hit a new high in early January, with a price value of nearly $42,000. According to coindesk, the price value was extremely volatile and came down to $32,500 after a few days. The technology attracts mainstream financial firms, As JP Morgan states that once the market cap reaches a higher pace, it could compete with gold and bitcoin’s price value may rise to $146,000 in the long run. Currently, Bitcoin has a market value of more than $600 billion. However, the improvement has resulted in people becoming obsessed with crypto, here are some reasons why blockchain attracts young investors despite the risks –
REASONS WHY BLOCKCHAIN ATTRACT YOUNG INVESTORS DESPITE THE RISK – BEHAVIOURAL AND PSYCHOLOGICAL REASON
- ROLE OF SOCIAL MEDIA
Major social media platforms like Twitter, Instagram, Facebook etc. deal with a huge young audience, catering to their innovative needs. Social media platforms play a prominent role in providing information about cryptocurrency. Famous personalities investing in crypto, or a highly-engaged bitcoin community feeds to the bitcoin’s popularity. Ongoing trends and viral posts from influencers or personalities like Elon Musk, spark motivation among the young generation, prompting them towards bitcoin. This makes youth adapt to the technology and get their hands on investment. However, research stated that people talking about their investments on digital networking sites tend to become more risk-seeking in the types of investments they do.
- THE FOMO FACTOR
It is obvious to say, people get excited through a new technology that offers huge investment possibilities. Viral tales, bitcoin’s increased value, billionaire’s stories, investment benefits, become a desirable windfall, no one wants to miss out. One fine story involves a dutch family of five who liquidated their assets in the year 2017 by exchanging bitcoin at a price value of $900 shifted to a van and travelled the world, attracting potential young investors from all around the globe making them curious about crypto and its investment benefits.
As Meyvis right said in an interview that Youth now focuses more on the miracles rather than the hindrances of crypto, so it becomes easier to get swept up in the possibilities that come along.
- EASY INVESTMENTS
Crypto is hard to ignore because of the ease of investment factor. Technologies such as user interface and user experience, created by crypto exchange make it easier for users to transact. In the case of stocks, even financial firms are somewhere unable to simplify the ongoing screenplay of price fluctuation.
- CRYPTO GIVES HOPE
Money is nothing but a form of technology that enables one to imagine bright futures. The FOMO factor and people’s sudden excitement towards bitcoin’s price value reveal that a majority of the young generation feel locked out of the ability to possess an asset that will make them wealthy. Millennials who are born between 1981 and 1996 control only 4.6% of the U.S wealth in the initial six months of 2020, says data from the Federal Reserve.
This shows the need for wealthy living conditions for each individual, however, the factor enables more and more people to invest in crypto, widening and strengthening the shiba inu and dogecoin.
- CRYPTO’S VOLATILE NATURE CAN BE EXCITING
Some investors like Kevin O’Leary and CNBC’s Jim Cramer invested in bitcoins to go to vegas. However, CEO Berkshire Hathaway and Chairman Warren Buffet believe that cryptocurrency can provide no value and are just gambling devices. This shows the dissimilar perceptions investors hold towards the volatile nature of crypto. Some believe it to be formidable and thrilling while others feel discouraged.
The young generation who have grown up playing video games and employing the max of social media are drilled towards instant fulfilment and fast-paced cycles. High risk, High-rewards, crypto gives both. Hence the rise and fall attract the young era to adopt the technology. Challenges are embraced and provide excitement to trade more effectively, which eventually results in a stronger bitcoin era among the young community.