Why will the younger generation choose bitcoin over fiat money?

Generational change will have a positive impact on cryptocurrency adoption. The analyst expressed this confidenceSylvain Saurel. He cites three reasons why the new generation will choose bitcoin over fiat money.

Banks will not be able to compete with bitcoin

Representatives of Generation X are already being replacedmillennials, as well as members of Gen Z and Alpha, who are introducing new rules. And if today millennials still have some doubts about Bitcoin, then Alpha representatives will use it as a regular means of payment. Analyst Sylvain Saurel stated this in his article.

The adoption of bitcoin and the transformation of the existing banking system will be driven by three main reasons, which Saurel cites.

Reason 1. Ease of use

More than half of children over 6 are already fineare tech-savvy and can easily use smartphones. They can order games and toys from the store, pay for subscriptions to various services, exchange messages and chat with friends via Zoom. This means that the use of digital money will become as common for them as bank cards or cash for Generation Z, Y, X.

Generation Alphas won't go with a bunch ofdocuments to the bank to open an account. They just need to open a bitcoin wallet, buy coins using their parent credit card and start using them immediately.

“For millennials, opening a bank account has becomepainful, and many try to move to solutions with much less bureaucracy. Generation Z and Generation Alpha members will prefer to move towards systems without red tape. "- writes Saurel.

The Alpha generation will prefer to manage their finances only with a smartphone, and this must be taken for granted.

Reason 2. Availability of bitcoin

The rhythm of life of modern people is accelerating.Today, even millennials have a problem waiting for their turn to see a doctor or for a response from a bank about the possibility of issuing a loan. Modern young people want to get everything at once. Cryptocurrencies solve this problem. You can pay for goods using digital coins in a matter of seconds. You can get a DeFi loan on your own without looking up from your mobile phone.

“For Gen Z, everything has to be instant. 5G will help them do just that. When they want to make a bank transfer to the other side of the world, they do not understand why they have to wait from 2 to 5 days with the SWIFT interbank payment system ”, - Saurel is sure.

Generation Alpha with easewill give up the banking system because it is too slow. Five-day office hours, lunch breaks and endless customer loops are not for Alpha. They want to solve their problems instantly, without wasting time waiting.

Reason 3. Freedom of use

The cult of freedom is being promoted in the world today. Freedom in thoughts, actions, lifestyle, clothing, etc. This trend will be key for the Alpha generation as well. Modern children already understand that fiat money does not belong to them. They belong to the state represented by banks, tax authorities, various funds, etc.

Bitcoin, like other cryptocurrencies, is notbelongs to absolutely no one except its holder. This means that representatives of the Alpha generation will easily choose the money that other structures will not apply for. Another plus is privacy. Teens-to-be will not have to share personal information, which will preserve their privacy.

“Finally, Generation Z is already well aware ofshortcomings of the current monetary and financial system. They understand that past generations have abused this system and that they must pay for it.”, Says Saurel.

Who Chooses Bitcoin Today?

Talking about future Bitcoin adoption, Saurelemphasizes that representatives of generations Z, Y, X are still skeptical about this asset. However, research by cryptocurrency investment firm River Financial Inc. refute this. On the contrary, today the main bitcoin hodlers are exactly the representatives of the baby boomer generation, who grew up in a conservative time.

“Since March, bitcoin boomers have accounted for 77% of River Financial's volume growth. This indicates that Bitcoin is becoming more and more popular. ", said Alex Leishman, co-founder and chief executive officer of River Financial.

River Financial says demand from older clients is increasing. Unlike many cryptocurrency brokers, River Financial only works with bitcoins.

The company also explains that the decision of the boomersinvesting in cryptocurrencies has been largely influenced by the crisis caused by the coronavirus epidemic. Against the backdrop of falling stock and commodity markets, cryptocurrencies have shown incredible resilience and quick recovery even after a serious crash.

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