Millennials Push Up Bitcoin To New Highs: Rick Reader
Disappointment with the banking system, echoes of the 2008 economic crisis, and the desire for independence – as it turns out, millennials and Bitcoin have a lot in common. How is the new generation driving the price of Bitcoin up?
Millennials love Bitcoin
November 2020 can be safely dubbed “the month of Bitcoin”. The flagship cryptocurrency is close to it’s all-time high of $20,000, and the bulls seem determined to continue their winning streak. Analysts name a variety of drivers that have pushed the price of Bitcoin up, ranging from the technical performance of the network to the growing open interest of institutional investors.
Millennials are also part of the success of Bitcoin. Rick Reeder, CIO at BlackRock, is convinced of this. In an interview with CNBC, he noted that millennials are a potential audience for cryptocurrency, and this is due to the experience they had to go through. That is the Great Recession of 2008 when the global economy and the traditional financial system cracked hugely.
The crisis of the banking system, a sharp decline in the economy, bankruptcy of companies, and massive unemployment – the generation of millennials faced one-on-one with the consequences of the global collapse. It has been 11 years since the start of the Great Recession, but its echoes are still in the air. As a result, an entire generation has developed a keen distrust of banks and other financial institutions.
The emergence of Bitcoin in 2008, amid the crisis, gave hope for the existence of an alternative to the outdated financial system. Of course, at the beginning of its journey, Bitcoin was not taken seriously enough as an investment asset or a means of payment, but over time it was able to prove its viability and willingness to compete with the “dinosaurs” of the market.
Bitcoin is “here to stay”
Bitcoin’s freedom-loving nature is precisely the trigger that grabs the attention of millennials. The decentralization of cryptocurrency looks more appealing to a generation of people who have faced rigid boundaries from the banking system. Polls that were conducted in 2020 once again confirmed the upward trend in the interest of millennials in cryptocurrency.
According to Reeder, now we are seeing the formation of a young, completely new generation of traders and investors who are already creating a different model of behavior in the market. Mobility, simplicity, and accessibility are the main “whales” that keep millennials’ interest in the crypto market. That is why cryptocurrency trading applications are at their peak right now, and payment giants such as PayPal are eager to join the crypto mainstream.
Bitcoin can replace Gold
Rick Reeder is convinced that Bitcoin has strong potential to further grow and strengthen its position in the global financial infrastructure. In an interview with CNBC, he noted that Bitcoin could become an alternative to Gold due to its functionality. Reeder’s opinion was also supported by experts from JPMorgan:
In general, the warming of the market’s attitude to Bitcoin once again confirms that the cryptocurrency is with us for a long time, and the traditional financial system has only to put up with it.