In a time before Bitcoin, most people’s first experience with financial investments was receiving a premium bond certificate as a gift from their grandparents.
Today, we live in a different world. A world where Bitcoin exists.
Millennials Prefer Bitcoin to Stocks
While the older generations are still hesitant when it comes to investing in digital assets, tech-savvy, smartphone-connected younger generations are very comfortable with the idea of buying bitcoin online or using their phone.
Bitcoin speaks to millennials because it is digital, global, and inclusive. Bitcoin is also a clear stance against “big banking,” which caused the Global Financial Crisis of 2008. Something that most millennials were affected by one way or the other. As a result, there is deep mistrust in banks and the established financial system.
Moreover, bitcoin has the potential to turn small investments into significant nest eggs within a few years. The same cannot be said for stocks and bonds.
Simply put, millennials get bitcoin.
Stocks, bonds, ETFs, and similar traditional investment vehicles are difficult to understand for millennials who do not have a background in finance or economics. Bitcoin, on the other hand, can be explained in a simple manner that makes sense to millennials.
Bitcoin is a global, borderless, digital currency that enables everyone across the globe to be their own bank. Anyone can hold, send, and receive bitcoin over the internet and no banks are required in the process.
While this may sound like magic internet money for older generations, for millennials, this makes perfect sense. Bitcoin is money for the internet.
Stacking Sats is Easier Than Picking Stocks
Today, there are even applications - like Fold, Lolli, and Pei - that enable you to earn small amounts of bitcoin every time you make an online purchase at specific merchants. These types of cashback apps are gaining substantial popularity among millennials as both shopping online and receiving bitcoin into a digital wallet are second nature to the tech-savviest generation of all time.
Moreover, you can buy as little or as much bitcoin as you want. Whether you want to buy $1 or $10,000 worth of BTC, you can do that online within minutes. The same cannot be said for stocks.
The majority of investment platforms have minimum investment requirements, in addition to lengthy onboarding processes. And fees are generally hiding around every corner in the traditional financial services industry.
Ironically, for an industry that has long been associated with illegal commerce on the dark web, cryptocurrencies are more transparent than traditional assets and securities thanks to their underlying public ledgers. As a result, there is more trust and transparency in crypto than in the traditional capital markets.
What Vimba Users Are Saying
Interviewing users for our “Vimba Story” series has been an educational experience for me. Not only has it been extremely valuable to hear what our users think of our platform but it has also given me more insight into why people are buying bitcoin.
The majority of our 7,000+ users purchase relatively small amounts of bitcoin - usually a few hundred dollars - on a weekly or monthly basis via our automated investing feature. This enables them to dollar-cost average into BTC, which smoothes out market risk while making investing more affordable and accessible for small investors. Moreover, once it is set up, it is completely hands-off, which is a big selling point for our users.
What is perhaps more interesting, however, is that many of the people that I have spoken to have either bought bitcoin as their first-ever investment or are only investing in bitcoin (and a handful of other digital assets). This theme has particularly been the case with our younger users who have just started their investment journeys.
Many millennials seem to believe in Bitcoin a lot more than in the financial industry, which is - in a way - represented by stocks and bonds. Additionally, buying bitcoin within minutes on a platform like Vimba is much more appealing for millennials than dealing with the same financial institutions that caused the 2008 financial crisis.