Historically, millennials (people between the ages of 25 and 40) form an age group that has the ability to greatly influence the economy. At this point, that’s the generation that we currently refer to as millennials. The influence this group wields comes from the vast purchasing power they hold in their bank accounts. But, wait a minute. It looks like this very group might be in the midst of breaking up with banks.
The Problem Millennials Have With Banks
As millennials start working and accumulating wealth, they become very sensitive to any activities that could interrupt their ability to accumulate that wealth. Enter the banking industry.
The banking industry has a history of putting a little money in one pocket of its customers while taking a whole lot more money out of the other pockets. This is in reference to the very small amounts they pay in interest on savings (in the pocket) and the absurd they charge for interest on borrowing and transaction fees (out of pocket).
None of this is lost on millennials who have grown up at a time when interest savings has been near 0% while credit card rates can go as high as 25%. The result has been growing mistrust of the entire banking industry.
The Alternative is Here – Cryptocurrency
Unlike prior generations, millennials do have an alternative to banks, an alternative that they seem more than willing to embrace.
Anyone who is not yet aware of the cryptocurrency revolution has frankly been living in a cave. Cryptocurrencies are digital currencies that exist not in banks but on something called the blockchain. Blockchain is a technology that exists as a registry where the individual transactions are tracked by confidential transaction keys and not account numbers. Furthermore, the transaction keys are approved by a majority of the participants before being attached to the blockchain.
As a means of exchange, cryptocurrencies like Bitcoin and Etherium have been gaining in popularity. This growth has been ignited by millennials who appreciate the opportunity to transact business among themselves and with merchants without being accountable to the banking system.
The relationship between cryptocurrencies and millennials has turned into a love affair. It is estimated that at least 17.2 percent of millennials own a digital exchange account and crypto already. Furthermore, wealthier millennials are participating in the crypto revolution to the tune of about 25% of the millennial population. The numbers keep growing.
As an investment option, millennials have shown the willingness to endure the volatility of a crypto market that is still in its infancy. With emerging markets like India de-regulating crypto trading, millennials in these countries can easily invest and convert their profits from BTC to INR (fiat). This new investment option is taking hold in these markets which are seeing significant growth.
What millennials are really falling in love with is the freedom they can get by using crypto to transact business right from their smartphones. They can transact business with a fee that is negligible while not being accountable to wealthy banks that seek to strip them of their wealth.
There is still a ways to go, but this crypto revolution can no longer be considered a fad. Driven by this generation, terms like blockchain and cryptocurrency a quickly being indoctrinated into mainstream society.