There is no getting away from the fact that Bitcoin and other cryptocurrencies have experienced an astonishing level of growth during the last few years. People who chose to invest only twelve months ago now stand to see an 820% return, and that’s almost impossible to achieve when individuals store their cash in traditional savings accounts. With that in mind, millennials could benefit significantly from avoiding the banks and putting their using their money to buy Bitcoin – some of them are doing that already!
A new report based on information from a survey conducted by CoinSpectator highlights the fact that more and more young people now shun savings accounts and prefer to try their hand at the cryptocurrency markets. The document says the main reason for that change relates to the high-interest rates and potential returns.
Aren’t millennials happy with savings accounts?
In a word; no! Experts now claim that around 70% of people in their late teens and early twenties feel unhappy with the deals their get on savings accounts from high street banks. 20% of people taking part in the survey weren’t sure, and that leaves only 10% of millennials who consider the service they get from their banks as satisfactory. Sure, there are risks involved in the Bitcoin market, but around 65% of people now believe that option is safer than the traditional alternative.
More than 10,000 millennials between the ages of eighteen and twenty-four provided a response to the survey, and no less than 60% of them claimed to have purchased Bitcoins during the last twelve months. A further 29% said they are considering investing in the cryptocurrency in the future.
Does this spell the end of savings accounts?
Surprisingly, the new report highlighted some interesting facts about the way in which millennials see the role of their banks in modern times. Far from wanting to avoid them altogether, 45% of people said they would like their banks to offer a Bitcoin-based savings solution. That could prove to be a fantastic opportunity for companies working in the financial sector if they get the process right. Still, that isn’t the only cryptocurrency on the market that’s getting a lot of attention at the moment. More than 66% of females and 25% of males said they’d also made investments in Ethereum during the past few months. Much like Bitcoin, that cryptocurrency grows exponentially almost every month.
Considering all the information on this page, it has become clear that high street banks will have to improve and enhance their savings services if they want to succeed well into the future. Millennials know how to keep their fingers on the pulse, and if the choice is between a 2% return and an 820% return, most people are going to select the latter. Will banks manage to adopt Bitcoin and other cryptocurrencies in the future? That remains to be seen. However, they’re going to lose out significantly if this current trend continues for more than another couple of years.
