(CBS Local) — Despite plummeting prices, then sweeping gains, and government crackdowns, and credit card companies banning purchases, Bitcoin still looks like a sound investment to millennials, according to recent studies.
According to recent studies, the Great Recession of 2008 has made a large portion of millennials so fearful of investing in the stock market that young adults say they’d rather take their chances in the volatile world of cryptocurrency.
“Bitcoin’s anti-establishment roots and decentralized system brings with it the hope for a new economy that puts people over corporations,” BitcoinSportsbook.com’s Julia-Carolin Zeng said, via Market Watch. “This is an extremely appealing message to millennials who watched their job outlooks dwindle as the financial crisis unfolded.”
A recent survey by Blockchain Capital found that a third of 18 to 34-year-olds would rather own $1,000 worth of Bitcoin than $1,000 of government bonds or stocks. The survey was conducted in 2017, just weeks before the online currency soared to a record-high value of nearly $20,000. In 2016, Bankrate.com found that just 18 percent of 18 to 25-year-olds had invested in the stock market.
While Bitcoin’s ability to bypass banks and governments may appeal to millennials, traditional institutions are making it known they are not happy with cryptocurrency’s roller coaster ride. Several banks have already announced that they will no longer allow customers to buy Bitcoin using their credit cards. That news, combined with the constant threat of hackers stealing the online money, sent Bitcoin’s price crashing to below $8,000, though it’s since rebounded as of Feb. 7.
The cryptocurrency market has reportedly fallen from $830 billion to $366 billion in value since early January. Financial experts warn that the safest way for young adults to build for the future is to invest in the market. “Although there’s always some risk involved, building a portfolio at an early age allows for
compound interest to grow and produce ample savings over time,” Bankrate’s Jill Cornfield said.