Millennials More Likely to Use Peer-to-Peer Crypto Exchanges
A large number of millennials are using peer-to-peer marketplaces and exchanges like Paxful to invest in the growing digital coin market. They believe that these digital assets work as a good store of value and are using them as alternative payment systems to banks.
Columbia University Business School professor Chris Castiglione said earlier this year that this generation is more suited to adoption and use of cryptocurrencies. As educated, tech-savvy individuals, they are better suited to the use of bitcoin, Ethereum and other digital currencies and are equally interested in managing and investing in these assets. They are also more aware of the risks associated with this kind of investment and seem ready to manage them too.
He said, “I think the crypto market is attractive to millennials because it’s a space with both a lot of growth and risk. People who are 40+ years of age are likely settled down with a career and family, and less inclined to get into such a quick growth, volatile field. It’s been the same way with startup founders over the past 2 decades. Millennials also seem to be much more digitally literate than Gen X or baby boomers.”
The entry of millennials in any market is almost always a guarantee of disruption. The generation demands quicker, hassle-free, and more productive solutions to their problems. Wallets are also becoming popular among them as they offer more privacy and security. Plus, users get to bypass the difficult laws and regulations of banking services too. Cross country payments can also be made successfully and given then volatility of these coins, there are chances of getting a huge return on your holdings as well.
Peer-to-peer exchanges like Paxful are getting more popular than traditional crypto exchanges. This is because people find it easier to exchange them this way. Moreover, the traditional exchanges are constantly under threat of regulatory oversight which means that savvy users are shifting to different methods for transferring these currencies.
The technical knowledge of the millennials is helping them send, receive, and store in these currencies with relative ease. Even newcomers can understand the use of these wallets easily. However, this doesn’t mean that there aren’t chances for troubles. Bitcoin wallet addresses are often complicated, and one can go wrong while making transactions here. The only problem here is that there is no third party regulatory body here. Funds once gone can never be received back and one careless transaction could result in a huge loss.
Given their digital literacy and interest in adopting an alternate payment system, these mistakes could be very rare. Castiglione said, “Many of the people starting cryptocurrencies and tokens do seem to be between the ages of around 22-40. But obviously anything is possible, and I could list many exceptions to the rule.”
It is important to note that the core of bitcoin and other crypto currencies lies in this generation. Several studies also suggest that millennials do not trust traditional financial institutions anymore. Owing to their performance, their methods of collecting fees and payments and the buildup for the 2008 financial crisis, they are now looking for a more democratic system of payments that exists in cryptocurrencies.