Brian Norgard, the CTO of the very popular Tinder dating sitehighlighted an interesting trend among Generation Y. Investing himself in SpaceX and Tesla, he finds that young people prefer to invest in crypto-currencies rather than conventional assets and reserves, citing a report from CB Insights.
This choice is not surprising considering all the benefits from the advent of new technologies including digital currencies. There is little transaction cost, user interfaces / UX are simple, fun and useful. Also, they are accessible on smartphones. And above all, the presence of an intermediary is not required during transactions, fueling more and more the loss of confidence in traditional institutions.
Mobile use and lack of trust in banks benefit the cryptocurrency industry
Traditional payment methods are giving way to mobile solutions: more functional, cheap and robust. The impressive growth of Alibaba Ant Financial – which was recently valued at $ 150 billion during its first round of financing – demonstrated the increasing and rapid use of mobile payments.
Ant Financial is working on a fintech mobile network called Alipay in China. The latter allows the sending and receiving of payments by using secure transactions and transparent on smartphone.
Alipay quickly attracted the interest of a large number of people, or 520 million users (34% of the total population of China) . This figure exceeds the market valuation of some of the world’s largest banks such as BBVA, Goldman Sachs and Morgan Stanley.
After a market survey on consumer needs and preferences, new companies and Fintech network operators are embarking on the development of mobile payments.
Young users want to use newly developed applications to carry out any financial task. They are using smartphones while the big banks are falling behind in terms of mobile technologies. In addition, traditional financial institutions are competing with innovative startups.
Millennial investing patterns & preferences:
1. Low fees
2. Desire for home ownership
3. Preferred adoption of simple, fun & useful UI/UX
4. Mobile 1st
5. Depleting trust of large financial institutions
6. Gameified solutions
— Norgard (@BrianNorgard) August 5, 2018
Lloyd Blankfein Goldman Sachs’ former CEO echoes Norgard’s comments by saying that moving from monetary systems to mobile financial networks should pave the way for virtual currencies like Bitcoin (BTC) and Ethereum (ETH). Decentralized crypto-currencies would be increasingly used by consumers and traders.
“If you go through this fiduciary money, where it says it’s worth what it’s worth because I, the government, I say it’s worth what it’s worth, why could not you have a Consensual currency? Asked Blankfeinn rhetorically at the Economic Club Conference in New York.
In the process, omens underlie an exponential adoption of crypto-currencies by Generation Y members. This trend will be further accentuated by the collaborative efforts of the New York Stock Exchange (NYSE), a cryptocurrency exchange, Starbucks, a multinational coffee vendor and Microsoft technology conglomerate.
Three large companies have already announced their intention to improve the usability of virtual currencies as a legitimate and alternative payment method , in response to increased demand from young crypto-investors and casual users. .
In recent years, Starbucks has been busy studying mobile financial technology while trying to develop it as well as possible. The company has also allocated a large portion of its resources in alternative payments such as Bitcoin and altcoins to stay at the forefront of new technologies. Maria Smith, vice president of partnerships and payments at Starbucks said:
“As a star retailer, Starbucks will play a pivotal role in developing practical, reliable and regulated applications that allow consumers to convert their digital currencies into US dollars for use at Starbucks. As a leader in mobile payment for our 15 million Starbucks Rewards members, Starbucks is committed to innovating to expand payment options for our customers. “
Mass adoption of crypto-currencies
According to Howard Schultz , a former CEO of Starbucks known for his great skepticism about the emerging industry, the adoption of cryptocurrencies could come to fruition under certain conditions. When large retailers and multinationals start using them as a means of payment, the acceptance of digital currencies , both within Generation Y and among the general population, will come automatically.
For Bitcoin and altcoins to be considered a leading asset class, retailers such as Starbucks need to be convinced of their legitimacy in order to develop a better infrastructure . The continued increase in the demand for digital currencies as a store of value, investment and alternative means of payment will enhance their everyday usefulness.
Do you think that cryptocurrencies are a better investment than traditional assets? Should they experience a global adoption? Tell us in the comments section below.