Many people describe our generation as more dynamic economically and culturally-diverse than other age groups. However, they say we still need to learn the ropes of becoming more financially secure. Besides, older generations criticize us more often than not for being inefficient money managers and wanting in financial savvy.
Just like all millennials, I look forward to retirement in the future. Some of my peers consider pension plans as the most rewarding option. Young people with entrepreneurial opportunities or accumulated assets don't rely much on pension plans. Nearly everyone prefers to supplement existing resources with some retirement plan. Unlike other age groups, many neophyte investors and entrepreneurs like us don't trust 401-Ks and mutual funds. Instead, we will gladly own digital assets without tangible properties as protection against another stock market collapse.
Pension Plans VS Cryptocurrencies
I tried to find out the advantages of pension schemes. For one, these plans offer protection with lump-sum payments or staggered payouts to dependents in case the member passes away. Likewise, pensions fill in any loss or reduction of income upon giving up work. State governments provide tax relief on contributions allocated for pension plans. The argument pension plans as the perfect option until I happened to read a Cryptocurrency news item from.
Cryptocurrencies – Perfect for the Millennial Generation
The article, "Bitcoin, New Key to Millennials' Retirement Savings" mentioned how young couples prefer Bitcoin as well as other digital currencies as the medium for stashing their retirement savings. I think millennials will save for retirement with the cryptocurrency because of our association with the digital world. Whether investing in any virtual currency translates to a correct or ill-advised decision, many younger people look at cashless currencies as lifetime savings and investments.
A big part of the millennial era became disillusioned with traditional financial institutions. Financial analysts say if the trend persists, banks will experience a massive turmoil shortly. Young professionals comprising the supportive cryptocurrency community choose BTC, ETC, and Altcoins over banks. If you look at the list of cryptocurrencies by market cap, you’ll see the market is booming. These "irresponsible" individuals have witnessed the innovative powers of these cryptocurrencies which influenced most of us to favor these coins over traditional money.
Majority of digital currency enthusiasts like me come from the young millennial peer group disenchanted with the legacy of these social and monetary entities. Customary student loan programs have left many university graduates mired in debt with the volatile economy keeping them unemployed. Coupled with massive spending brought about by the growth of consumerism or purchasing commodities and services in escalating amounts will ultimately lead to adversity.
Now, it makes sense to say that millennials have shunned saving money for their retirement indicating a loss of confidence in repressive economic platforms. The ever-increasing inflation in the country seems to aggravate this condition which turned fiat currency practically useless. Virtual currencies mainly Bitcoin benefited from this recent development because of its decentralized nature.
Turning Away from Traditional Options
A recent survey with 2, 000 respondents published by Fortune.com disclosed that more and more millennials are turning their backs on long-established investment tools. They now lean towards the novel cryptocurrency. Individuals (18 to 34 years old) choose Bitcoin over stocks as maintained by venture capital company, Blockchain Capital. The survey also showed that 30% of these millennials claim they favor $1, 000 worth of BTC rather than &1, 000 in stocks or government bonds even as only two percent of American citizens own or used to have Bitcoin in their possession.
At times, the investment tends to become unstable, but Bitcoin enjoyed a very successful year breaking records and closing at an all-time peak of $7,372 this week. Bitcoin's value last year amounted to only $700. At the same time, the study also found out that young Americans know about this unique investment option. Around 42% of millennials recognize Bitcoin as against 15% of elderly adults.
Stocks already reached all-time highs but cryptocurrencies surged even higher and faster in 2017. I know that many Americans such as baby boomers and Generation X still prefer traditional investments but wait till we manage to prove that digital money could be a better alternative than the rest. Then, many people will definitely move over to our camp.