Published on: https://readwrite.com/  There’s no doubt that the concept of money has evolved considerably throughout the years, and millennials and GenZ are taking a very different financial path from the previous generations, opting for alternative monetary forms such as cryptocurrencies. Interestingly, recent studies have shown that these generations are as likely to own crypto as they are to own homes, showcasing the appeal of digital investments, which have already become widely accepted and utilized for over a decade. But what drives millennials and Gen Zers to adopt cryptocurrency investments? That’s what we will explore in the article below, so keep reading to find out!  Distrust in the traditional financial system Gen Zers and millennials alike faced limitations in the centralized financial system, which never truly favored them, and this has determined them to choose decentralized finance instead of traditional systems. These young generations witnessed the Great Recession firsthand, whose impact lingered for a long time, with unemployment and household income taking a lot of time to recover.  A hard fork is a significant change that a blockchain can go through, and over the years, cryptocurrencies have experienced a lot of transformations due to these events. So, did Bitcoin have a hard fork? Yes. As it is the first cryptocurrency ever created, it has dealt with hard forks to make it more functional and appealing to people who want to learn how to buy bitcoin and take advantage of its opportunities, all while keeping an eye on the fluctuating price of Bitcoin. Over time, the most important currencies, including Ethereum and Bitcoin, have experienced hard forks, which in the case of BTC has created Bitcoin Cash, while the one of ETH has led to the creation of Ethereum Classic.  Economic factors In the time of Baby Boomers, building wealth was easier than in the present economic landscape, when all the odds are stacked against millennials and Gen Zers, who face job instability and a substantial cost of living. Due to these reasons, the younger generation has started looking for alternative ways to build wealth, with crypto being one of their favorites. Surprisingly, many Gen Zers and millennials have even left their 9 to 5 jobs to become full-time investors, allowing them to reach their financial goals and achieve more autonomy. A growing body of evidence illustrates that millennials and Gen Zers are actually buying crypto because they cannot find other greater returns. The political-economic status quo is failing to deliver for the current generations what it has delivered for the previous ones, and thus, it’s no wonder that millennials and Gen Zers believe so much in the potential of crypto that they would want the coins to be integrated into the mainstream economy – to them, it’s crypto or no other asset class at all.  Tech savviness Gen Zers and millennials have grown up with the Internet, social media, digital games, and other technologies, making them true digital natives. They were born into a society where the Internet and smartphones were well-established, and this early exposure to technology has shaped their views of the world and provided them with an understanding of digital platforms. To Gen Zers and millennials, technology isn’t a novelty but an imperative tool for education, communication, and personal growth.  As a result, it’s not surprising that they are more open to the idea of cryptocurrencies and digital transactions than the older generations. They wouldn’t hesitate to conduct a financial transaction on their phones instead of waiting in a queue at a bank, which is incredibly inconvenient.  Social media influence  It’s hard to overlook the impact of social media on Gen Zers and millennials’ decisions to embrace cryptocurrency. Given that platforms like Instagram, Telegram, and Twitter have plenty of content regarding cryptocurrencies, their price movements, and opportunities, it’s impossible that the younger generation doesn’t feel tempted to explore the possibilities of this dynamic market.  The crypto landscape fosters a vibrant community, and there are many dedicated subreddits as well as forums where millennials and Gen Zers can connect with like-minded individuals and share their opinions on digital assets and their potential. In such online communities, younger investors can feel a sense of belonging while learning from one another’s experiences.  Financial freedom  It’s no secret that traditional investments involve many intermediaries and complex structures. However, millennials and Gen Zers want to have more control over their financial future, and this is why they love cryptocurrencies – this digital technology can make their dreams come true thanks to its decentralized nature, which eliminates middlemen from the process and makes transactions more seamless and efficient.  Investing in crypto offers millennials and Gen Zers the possibility to hold and manage their crypto assets themselves, giving them financial autonomy and empowering them.  Furthermore, crypto investments offer enhanced accessibility compared to traditional investments, which have significant barriers to entry and either require massive capital or intermediaries like brokers. By contrast, anyone can access crypto assets as long as they have an Internet connection, which means all individuals from all walks of life can participate in the industry. This means that no matter who they are or where they come from, millennials and Gen Zers can easily buy crypto and take their financial future into their own hands, building their wealth gradually and creating the life they desire.  Investing in crypto requires a prudent approach Millennials and Gen Zers are undoubtedly leading the charge when it comes to crypto, but this substantial potential also comes with responsibility, as the market is complex and necessitates a cautious approach. First and foremost, it’s imperative to remember that crypto is notorious for its massive price swings, which can happen quickly. It’s essential to embrace a long-term perspective and see cryptocurrencies as a marathon and not a sprint, navigate the regulatory labyrinth efficiently by staying informed on the latest developments, and prioritize robust security measures like 2FA and strong passwords in order to safeguard crypto holdings.  The bottom line Digital investments have changed the ways the younger generation approaches money, with Gen Zers and millennials being the first to embrace the crypto trend and recognize their potential in achieving financial freedom and security. The massive return potential, the allure of financial independence, as well as the desire to gain more control over their finances, are all essential reasons why Gen Zers and millennials are putting their money and faith into crypto assets. While the choices of the young generation will undoubtedly shape the future, it’s essential to remember that there are challenges in the journey toward crypto success – to thrive in such a landscape, one must first tame the volatility beast, and this requires a long-term perspective and employing the right strategies to navigate the ups and downs of the market effectively.  The post Why are millennials and Gen Zers into digital investments? appeared first on Santa Clarita Valley Signal.