Tokenist Survey: Male Millennials Are Key In Maintaining Bitcoin’s Momentumbr>
Bitcoin has come a long way in the past decade. It transitioned from being associated with the criminal underground to becoming a mainstream alternative to fiat currency. The post-coronavirus world introduced new factors to consider and accelerated the already existing trends in Bitcoin adoption rates.
The Tokenist illuminated these factors by comparing Bitcoin adoption rates in 2020 vs 2017. Needless to say, The Tokenist chose Bitcoin (BTC) among hundreds of altcoins as it remains the leading digital currency that all other cryptocurrencies align with.
Consolidation of Bitcoin’s Credibility
For the longest time, the crypto sector has undergone a raging debate about cryptocurrency, as a form of money detached from both government control and the physicality of the printing press. How can it have value if it is not backed by the government? Would a new cryptocurrency collapse the value of the old one? Does it have long-term viability? Will its volatility decrease its utility, and therefore, its value?
For these and other questions, especially after the recent Bitcoin halving, Jimmy Nguyen offers an insightful perspective, in line with Satoshi Nakamoto’s original vision of Bitcoin. In the meantime, The Tokenist’s comparative survey of adoption rates tells us that people’s view of digital money has advanced significantly in favor of it.
In particular, close to half of all 4,800+ survey participants, 45%, answered they would prioritize Bitcoin over trading with traditional assets found in the banking sector, such as real estate, gold, or bonds issued by the government. Compared to the 2017 state of affairs, this marks a trust growth of 13%.
Furthermore, consider the behavior of the key central institution that ensures fiat money is credible, the Federal Reserve. Amid the market crash caused by the coronavirus threat, the Fed put up a flagrant display for the entire nation to witness as to how money can be electronically “manufactured” out of thin air. Trillions of it, multiple times. It would be safe to say this eroded the last remnants of reservation about Bitcoin as something that is just “code someone typed into a computer.”
Online Retailers and Crypto Salaries Adding to the Momentum
Although the infamous Silk Road was the first marketplace to take advantage of Bitcoin, it was highly unregulated and tied to criminal activities. It may have embodied the spirit of cryptocurrency as an unregulated, parallel system of commerce; however, in the end, it added little value than tainting the public image of Bitcoin.
As the cryptocurrency sector matured, many online retailers were eager to offer Bitcoin as a form of payment. Some of them are Overstock, Newegg, eGifter, CheapAir, and even Microsoft for its Xbox store credits. As you can already tell, the younger demographic is the primary target of these companies. More importantly, the current world of social distancing infuses the financial system with just the right incentives in which Bitcoin thrives.
One momentum leading to another, and we can also see the upward trend in companies offering their employees salaries in Bitcoin. Although the Japanese GMO Internet Group was the first one to start giving its employees cryptocurrency salaries, it was New Zealand that first legalized such salaries in 2019. Slowly percolating outside of crypto-focused tech companies, crypto-salaries are becoming increasingly popular in the new gig economy. Moreover, payroll facilitators like Toronto-based WaveApps are looking into crypto payroll integrations to make this transition all the easier for new companies eager to smoothly transition into crypto-salaries.
Generational Gap Remains Wide
Although there is a significant increase in Bitcoin familiarity across all age groups, with 61% of respondents reporting their relatively high familiarity with Bitcoin, 78% of those are actually millennials. The older than 65 demographic is still not comfortable with the concept of digital currency. Over 50% of them think it is just a bubble waiting to burst, compared to just 24% of millennials to hold that view.
The stark differences between age groups become even clearer when asked about whether they have owned BTC and whether they would trust big banks over Bitcoin. In both cases, people over 65 show the lowest level of participation – under 10% of owning Bitcoin – and the highest trust in the banking system – at 93%. Comparatively, over half of male millennials trust Bitcoin over big banks, and over a third of them have owned Bitcoin.
Interestingly, female millennials and the older-than-65 demographic are completely aligned on the question of Bitcoin’s positive contribution as a financial innovation. Both groups, at 43%, are the most reluctant groups to make the case for the positive nature of Bitcoin, answering that they are not at all sure.
The Tokenist’s comparative survey demonstrates what we have already suspected. Male millennials push the envelope of Bitcoin adoption. While a significantly greater number of people are more informed about the nature of the digital currency, it seems to be male millennials who are leading the charge toward Bitcoin adoption.
On the other hand, women and older demographics would likely follow by example if one is provided from established financial institutions. For example, if the Digital Dollar Project would become a reality tomorrow, the very fact that it would have originated from the government would likely be a key factor in legitimizing it overnight.