Young Investors’ Knowledge of Digital Currency Investment

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The research analyst Zev Fima does not believe that young people are just interested in firms that have digital currencies on their balance sheet. However, he believes that millennials are drawn to digital currencies for a variety of reasons, one of which is the need for quick money.

“I think it also may be distrust of the centralized financial system by a lot of young investors after 2008. We’re constantly printing money, and bitcoin came about after 2008 when people starting questioning how we protect the value of the funds we save amid devaluation of printed money”, Fima made the remarks during a VanEck-sponsored webinar on digital transformation.

Fima, on the other hand, urges young investors to proceed with care as it comes to digital currencies. “I too often hear various cryptocurrencies just getting bucketed in and the various differences are not being spoken about,”  he said.

Understanding blockchain, cryptocurrency and Bitcoin - FutureLearn

Bitcoin does have the store value argument since it can be mined for $21 million, which points to its value. Dogecoin, on the other hand, has over $130 billion in circulation with another $5 billion on the way or being mined each year. Besides, it does not have the same utility as ecosystems that have been created or are being explored, such as Ethereum.

“There are so many different cryptocurrencies and I think there’s a massive risk in bucketing them all together. I understand the draw, but unfortunately, sometimes the only way to learn is to get burned,” stated Fima. 

It does not mean millennial people are searching for bitcoin on the balance sheet. Rather, the appearance of bitcoin on the balance sheet tells investors that a business has a forward-thinking management team that is willing to do implement novel tech innovations.

Young investors are more interested in a business that embraces creativity instead of one that merely has bitcoin on the balance sheet.

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