Study: Most American Millennials Likely to Invest in and Use Bitcoin

A study carried out by LendEDU, the marketplace for student loans and student loan refinance, revealed that the overwhelming majority of American millennials have heard of bitcoin and are likely to invest in the cryptocurrency in the upcoming years.

Since early 2016, bitcoin has begun to receive extensive mainstream media coverage from mainstream media networks and news publications. Western newspapers such as the Wall Street Journal began to provide bitcoin price analysis in their frontpage beside the US dollar, Japanese yen, and gold, while network news in South Korea, Japan, and Australia have been providing bitcoin analysis and comparing the digital currency to major reserve currencies and assets.

Subsequently, the mainstream adoption of bitcoin has drastically increased and trading activities around leading cryptocurrencies have grown rapidly. Today, the daily trading volume of the cryptocurrency market is nearing that of Apple, the most liquid stock in the world.

According a new study and survey conducted by researchers at LendEDU, 78.6 percent of Americans have already heard of bitcoin and more than half of American millennials plan on investing in bitcoin in the future.

“Acting both as a screener question and as a gauge of Bitcoin’s relevance, LendEDU asked 1,000 Americans the following: ‘Have you heard of Bitcoin?’ The vast majority of Americans, 78.60 percent, have indeed heard of Bitcoin. Meanwhile, 21.40 percent of respondents have not heard of Bitcoin,” read the paper.

More importantly, more than half of the respondents expressed their optimism toward bitcoin as a store of value, long-term investment, and safe haven asset, revealing their intent to purchase bitcoin as an investment in the near future.

Last year, Facebook IQ, a team of researchers, scientists and analysts funded and supported by Facebook, released a similar research paper which suggested that millennials are 1.4x more likely to move to emerging financial technology (fintech) platforms and cryptocurrencies such as bitcoin that offer better usability, simplicity, and decentralization. The Facebook IQ research team further noted that millennials have begun to lose trust in banks and major financial institutions.

“To start, Millennials want to feel understood. And it matters because Millennials are 1.4X more likely than Gen Xers/Boomers to switch financial institutions. 45% of Millennials say they would switch banks, credit cards or brokerage accounts if a better option came along.Millennials also feel disconnected from the financial services industry. Many financial institutions have yet to realize that winning over the Millennial generation will require a transformative overhaul—from how each institution views its competition to how it connects with clients,” the paper read.

Many analysts in the bitcoin and cryptocurrency sectors including Max Keiser, Tone Vays, and John McAfee believe that the price of bitcoin will surpass the $100,000 mark and eventually achiev a multi-trillion dollar market cap. Wall Street stragists including highly regarded financial analyst Tom Lee have also stated that the price of bitcoin will likely surge to $25,000 in the upcoming months if the demand toward bitcoin and the cryptocurrency market can be sustained.

If the majority of millennials in the US and other major bitcoin markets such as Japan and South Korea turn toward bitcoin in the next few years as the research of LendEDU states, it will allow bitcoin to grow at an exponential rate and establish a new consumer base that could be sufficient to compete with leading banks, financial service providers, and eventually, the entire global financial industry.

The LendEDU research team noted:

“Interestingly, the numbers jumped a bit when respondents were asked to reveal their future Bitcoin intentions. 17.18 percent of poll participants answered that they “plan on investing in Bitcoin as an asset for the future.” The majority of consumers still have no intentions to own Bitcoin even in the future, but this time it was only 54.58 percent. Additionally, 28.24 percent of respondents do not yet know if they will invest in Bitcoin in the coming years.”

Author:
Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.