Why Millennials Are Investing in Ethereum: A Look at the Trends

Ethereum's value is increasing every day, which means that it's becoming a much more sought-after asset across the market! This applies to a whole range of people from a surprisingly large number of demographics, not just hyper-modern Gen Z teens who are excited about how crypto may interact with the future of personal finance.

Interestingly, millennials are investing in Ethereum a little more than other generations, and when you consider the Ethereum price USD (live price chart can be accessed on Binance, CNN, Bloomberg etc) and how it has changed over the past few years, this is quite an understandable decision.

Let's take a little time here to run through some of the main reasons millennials are seeing fit to invest in Ethereum compared to other, more traditional assets. There are some surprising methodologies behind the scenes, but, often, there's also a method to apparent madness.

Increased upsides

One of the primary reasons millennials are choosing to invest in Ethereum compared to other assets is that the upsides of a good day on the crypto market are remarkably higher than the upsides of a good day on the regular market. Many different cryptocurrencies have increased by several thousand percentage points since their inception, and to deny the money-making opportunities there would be simply absurd.

Astonishingly, according to recent polls, some 45% of millennials are planning to invest in crypto ETFs in 2024. This is a remarkably high number for a generation of people that has seen everything from the inception of crypto to the modern day - this belies a true level of faith in the tech, and is impressive and encouraging for any crypto-focussed professionals.

Along with the upsides of a good day in the crypto market, many millennials say that the reason they're focussed on crypto, to some extent, is that it offers some great diversification opportunities for their investments. While this may not seem like much of a big deal up front, it actually belies a more interesting piece of information: millennials are wealthier than you may at first consider. If a significant number of millennials consider their investment portfolios above other costs in their life, this is a sign of their increased ability to afford greater things.

Buy-in costs

That point brings up the topic of a buy-in cost. While the crypto market does typically allow people to buy a fractional amount of a coin, it's much more common to invest several thousand real-world dollars in a few coins. The reason for this is that each coin has such a high value that any appreciation over time will increase by more per coin than other assets increase per unit.

Millennials are far from the teens that the internet, for a long time, focussed on them being. The average millennial in 2024 is nearly thirty-four years old, meaning that they have had more time to earn and accumulate wealth than gen z and other, younger generations. This wealth accumulation has had a simple knock-on effect: they can now afford to invest in a wide variety of different things.

Risk tolerance

However, this point of age actually goes both ways. Because millennials can be in their mid-to-late twenties, they can afford to be a little riskier with their investments than someone several decades their senior.

This may be a little obvious, but if you've got a lot of time to wait for different assets to mature and increase in value, then you've also got quite a lot of time to start afresh, should you need to.

An elderly person looking at their investment portfolio, however, is much less interested in the long-term gains that crypto may offer them. Instead, they are more likely to be interested in diversifying their assets to ensure they can earn a consistent amount of money from them with each passing month. This lack of risk tolerance prevents older generations from engaging with crypto with the same vigor that younger generations have embraced it with.

Lack of management

The final point to be made about crypto investments among millennials is that the funds typically require little to no management overall. As such, they're more valuable to someone of a younger generation like millennials, who are likely to also be working a full-time job and using investment as a way to future-proof their bank account.

On the other hand, generations that are a few years older may be beginning to consider retirement or otherwise reducing their hours at work. As such, the stakes of managing their money are much higher. Therefore, they will likely want to be much more involved and engage with their funds and investment portfolio on a personal level.

This lack of management has a secondary benefit, too - especially for younger generations that tend to have a lessened attention span. Essentially, a lack of management can mean that you're surprised when you turn a profit. It's a form of semi-passive income that, in the case of an ETF, will be managed by a professional to help ensure the return that you're guaranteed.

Ethereum is increasing in popularity with time and as such more millennials are becoming invested in the growth and opportunities that Ethereum has to offer.