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Bitcoin and cryptocurrency continue to make serious headway, and according to one source, the reason for this is purely because people have become more intrigued by what crypto can do.
Bitcoin Is the Choice of Young Traders Everywhere
The interest is primarily driven by millennials and institutional players. Millennials have long been a strong audience for crypto for several reasons. For one thing, many members of younger generations grew up during financially unstable times such as the Great Recession in 2008. As a result, they have terrible distrust of both banks and standard financial institutions.
Where these companies are centralized and have more say in who can gain access to specific financial tools, bitcoin and other forms of crypto are decentralized. In other words, they are not controlled by a few people at the top of a ladder somewhere, but rather by the people that use them. They are designed to give people more financial independence, which appears to be what’s drawing more millennials to crypto in the first place.
Matt Luongo, CEO of Thesis, states that several crypto apps are rising in popularity simply because millennials and younger traders are getting more involved. He explains:
Millennial finance is premised on the ability of new technologies to fundamentally and permanently reshape how the money system operates in both form and function. This isn’t just theory. It’s happening now, and millennials are leading the charge. The success of platforms like Robinhood, Acorns and Wealth Front demonstrates the potency of this movement and underscores millennials’ thirst for options beyond the traditional banks and brokerage houses.
He further states that these companies and others like them are the start of something huge. He says:
These apps are only the tip of the iceberg. Their fundamental innovation is around user experience. They ultimately use the same financial infrastructure that legacy banks and wealth managers do. Millennial finance has more in store, and cryptocurrencies will be key. Rather than building a better train to run over the same old rails, crypto lets us build new, open, peer-to-peer rails.
Institutions Have Lots of Influence
The big shocker is still the presence and activity surrounding institutional traders. It was long thought that institutional traders were avoiding the crypto market due to assets’ volatility. Professional players did not want to take any chances on their wealth, and with crypto, the odds are just as high that one could easily lose everything overnight as they are for incurring massive gains. Perhaps even higher.
Going against traditional belief, however, institutional players have proven themselves to be heavy hitters when it comes to the growth and expansion of the digital space. They’re getting involved, and they’re moving money around like there’s no tomorrow. The recent $1 billion in bitcoin investments brought on by Grayscale is proof of this.