Written By Rachel Wolfson, CONTRIBUTOR at FORBES.
While cryptocurrency might not appeal to the masses, Millennials seem to favor Bitcoin, Ethereum and other digital currencies.
A new report released by Finder.com found that Millennials had a 17% cryptocurrency ownership rate out of the 2,001 American adults surveyed.
Gen X had a 9% rate and Baby Boomers were a bit over 2%.
Yet considering the risks involved with owning cryptocurrencies, it’s no surprise that Millennials are one of the largest age groups to invest in crypto.
The idea of being in control of one’s money without having to go through a bank to gain access to funds seems to appeal to the younger generation in particular, regardless of risk factors.
This notion has become even more evident with the recent news that a number of college students are using money from their student financial aid to buy Bitcoin and other digital currencies.
One-fifth of the 1,000 students polled by The Student Loan Report admitted to using money set aside for living expenses to invest in cryptocurrencies.
As the cryptocurrency craze continues, it seems as if Millennials will do anything to get their hands on various forms of digital currencies.
Interestingly enough though, one of the main reasons Millennials are investing in cryptocurrencies is to save for retirement funds.
Crypto For The Long Term
Cryptocurrencies being used by Millennials to save for the future could be quite revolutionary if the concept catches on. Recent findings from the NIRS show that 95% of American Millennials are not properly saving for their future.
Moreover, the study also found that two-thirds of working Millennials have nothing at all saved for retirement.
Yet as more Millennials invest in cryptocurrencies, new opportunities for putting crypto assets toward a 401(k) or IRA are becoming appealing and even plausible.
Jeremy Gardner, managing partner at Ausum Ventures, is 26-years-old and has been investing in cryptocurrencies for about five years. Gardner is one of the many Millennials who strongly believes in crypto assets.
As a millennial, I personally put much greater faith in scarce digital assets that are determined by math and auditable code, rather than a group of bankers at the Federal Reserve. This is because dollars depreciate in value, while crypto assets historically have appreciated, and will continue to exponentially, should they be successful. That being said, I’ve put away savings for my unborn children’s education and my retirement, Gardner told me.
And while the risky nature of the cryptocurrency market might not appeal to some, Millennials seem to be finding major opportunities in the risks involved.
Parul Gujral, cofounder and CEO at Snowball, believes the volatile nature of cryptocurrencies could help boost his retirement fund greatly.
“Sure, cryptocurrency investments are liquid and risky. But if my investment could snowball effect 1000x, why would I not invest at least a portion of my retirement in crypto?” Gujral noted.
And Greg Osuri, founder and CEO of Akash Network, has already seen his retirement fund grow as he continues to invest in cryptocurrencies.
“My crypto allocation in my retirement fund grew from 1% to 20% as my conviction in crypto got stronger over time. Most of that has do with improved technology, economics, growing adoption and maturing regulatory climate. I'm long on crypto and I sometimes bet on great ideas with great teams, even if they have 1% chance of success,” Osuri said.
Yet while the future looks bright for using cryptocurrency to save for retirement, a recent survey from Auctus, a smart contract-powered retirement planning platform, shows that more work still needs to be done.
While many Millennials admit to owning cryptocurrencies, 6% out of 501 American Millennials surveyed by Auctus noted that they would consider using cryptocurrencies as an investment option for their retirement plan.
While this number is notable, the CEO of Auctus Raphael Vantroost is hopeful that blockchain-based solutions will help encourage more young people to put forth cryptocurrency for their retirement portfolios.
Bitcoin and cryptocurrencies serve as some of the first investments for many millennials. This could be because the younger generation is tech savvy, but it could also be due to a lack of alternatives,” Vantroost said. “Auctus is a first-of-its kind retirement investment platform incorporating cryptocurrencies, bonds and stocks, which is positioned to help those tech-savvy millennials understand how to save for the future with both traditional and crypto assets.
Vantroost believes that Auctus will help bring widespread adoption for putting cryptocurrency toward retirement funds by providing the correct tools for retirement planning.
The platform helps users gain control over their savings, while understanding the long-term impact of small adjustments, such as the risks involved with adding cryptocurrency to an IRA.
While the idea of using cryptocurrencies to save for retirement funds is still a very new concept, the solution for mass adoption certainly lies within the creation of the correct technology to accommodate the growth.
Yet for now, just shedding light on the fact that Millennials are using cryptocurrencies to save for the future is providing the younger generation with a new sense of hope and even more opportunities for a secure future.
Yasmeen Drummond, CEO and founder of Team Block Society and cofounder of Women in Blockchain, is a Millennial entrepreneur who has mentioned that she has made more per year by purchasing and holding onto cryptocurrencies, like Ethereum and Icon.
She plans to use her savings for social investments that will benefit community efforts and her retirement years.
I’m currently building an ecosystem of women entrepreneurs in the blockchain and cryptocurrency space. That social investment and return is more valuable than any monetary sum,” Drummond said. “If you believe in community, you believe that social investment will benefit you, now and in your retirement years. I’m helping to build a better world for myself, my children and my fellow citizens of humanity through cryptocurrency.
