Although prices managed to skyrocket by 86,000 percent in just a few days, SQUID crashed this week. The explosive cryptocurrency turned out to be a scam, with the developers running off with investors’ money. It’s estimated that they swindled over $3.3 million from investors. This incident goes to show that crypto can be a big gamble for traders. Nevertheless, cryptocurrency seems to attract investors in various age ranges.
If you have yet to hear what crypto is and what the hype is all about, consider yourself in the small minority. According to a recent research, only a small fraction of the US population is unaware about digital currency and cryptos. In the survey, only 4 percent of respondents say they were unaware of a currency that relied on cryptography to stay secure.
James Royal, author of The Zen of Thrift Conversions, and analyst with Bankrate.com, has an interesting theory on crypto. In his opinion, the way to make money using crypto is to sell your tokens to someone else. But not just any ordinary person. After all, who would buy your crypto tokens when it already costs so much? The only people to buy it are those who think its value will rise higher than what you think it will reach.
He said that a good metaphor for the state of current cryptocurrency markets is the game ‘hot potato.’ The first cryptocurrency, Bitcoin, came out a decade ago, and since then, competitors have launched their own versions. These platforms have led to a race in the crypto space as coins compete to get on top.
Older generations have a more empirical approach towards investing, which explains why they prefer assets like gold. That’s because with cryptocurrencies, they think that it’s not backed by cash or a tangible asset. This explains why, among the different generations, Millennials are the face of the crypto investing trend. That’s because they’re more tech-savvy and have more confidence in cryptocurrencies.
Bankrate recently conducted a survey to see what generation of adults are more confident with crypto investments. Almost half of millennial respondents said they’re at least a little comfortable with the idea of crypto investments like Bitcoin. However, among members of Gen X, this dropped to 37 percent. As for baby boomers, it’s even lower, as only 22 percent of respondents said they’d consider it.
James Royal explains that many people invest in cryptocurrencies with the intent of making it big. Rather than believing in currency’s potential, they invest because they see it as a potential lottery ticket. Nevertheless, the growing base of crypto enthusiasts can’t be ignored. Many digital natives have the wholehearted belief that digital currency is the medium of the future.