Cryptocurrency Investors Rejuvenate and Make Millions

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Is cryptocurrency financial kryptonite? The younger generations don’t think so.

Gen Z and millennial investors are flocking to buy cryptocurrency stocks, such as Bitcoin or Ethereum, in the hopes of making big money. Cryptocurrency, which is a type of digital file that can be used as currency, based on blockchain technology, is not controlled by any centralized entity or government and is nearly impossible to trace.

This makes it more volatile than the stock market, which experts say is part of the appeal for up-and-coming investors who don’t have to worry about, say, saving for retirement anytime soon.

Volatility attracts people who enjoy gambling, excitement, and more, said David Yermack, professor of finance and business transformation at New York University. They aren’t that much interested in the underlying economy, but [rather] the risk of a very rapid and large gain, or a very rapid and sudden loss.

Cryptocurrency gained ground with the emergence of Bitcoin 12 years ago and has since grown to include more than 10,000 types of coins. After major currencies hit all-time highs in May, a single Bitcoin peaked at around $ 65,000, they fell rapidly, with Bitcoin now worth less than half. The market as a whole tends to be high risk and high reward: for example, 33-year-old Dogecoin investor Glauber Contessoto became a crypto-millionaire earlier this year, only to recently lose $ 167,000 of the day. on the next day.

Contessoto is typical of the emerging crypto investor demographics.

The majority are under 35 and are predominantly male, according to Yermack. Gen Z and millennial investors make up almost 94% of the crypto market, with older generations sticking to more traditional investments, such as bonds and index funds.

Yermack believes the pandemic has only accelerated this trend.

Cooper Turley, 26, says he’s a crypto millionaire. Courtesy of Cooper Turley

People had a lot of free time and were locked in their apartments, he said. It fills a gap that had been created by the lack of entertainment and recreation caused by the pandemic. (He said he saw this firsthand, when his 21-year-old son invested his stimulus check in cryptocurrency.)

He said young investors also appreciate that crypto feels a bit renegade.

Young people seem to like to take what we would call contrary positions that bet against the wisdom of Wall Street, Yermack said. It is an act of rebellion against traditional methods of investing and doing business.

But crypto investor Cooper Turley, 26, said it was only a matter of time before alternative currencies were completely mainstream.

Turley, who lives in Los Angeles and works in crypto strategy in a streaming app, claims to have made millions in the crypto market. He started with just a few thousand dollars a few years ago thanks to part-time jobs and freelance writing assignments and now has access to seven figures after giving up his post-graduate career to work in this space at full-time.

A few years ago, he said, the crypto market felt “insecure.” But now: No matter where prices go in the next couple of months, this industry is here to stay.

He is confident that the next business behemoths, the future Apples and Googles of the world, will be crypto-based, with young leaders spearheading new ways to reach potential consumers.

Our generation is so much more aware of things like TikTok and the For You page [TikTok’s explore page catered individually to user’s interests] and viral memes and viral content, but until now there was no way to invest in that financially, Turley said. What’s really exciting about crypto is that for the first time in history, we can place a financial value on social capital.

Social media plays a role in cryptocurrency investing, both for people looking to invest, as well as for content creators who use it to guide other investment decisions. Reddit threads, YouTubers, and Twitter accounts are racking up hundreds of thousands of subscribers looking for crypto tips.

While Dogecoin, Turley said, may seem silly on paper as a stock meme that is empowered by social media and Reddit, he said crypto ultimately comes down to sharing investments with a passionate community.

NYU alumnus Maren Altman uses planetary alignments to predict market performance.marenaltman / Instagram

Maren Altman, 22, has achieved full influencer status by posing as a “crypto-astrologer.”

The New York resident and NYU graduate has 1 million subscribers on TikTok, where she claims to use the planets to predict major changes in the crypto market.

Even though this sounds like Gen Z nonsense to older investors, she said her audiences are looking for a change of pace.

The way their parents accumulated money in a proven way, perhaps through investment index funds or savings accounts with a low APY percentage, is a joke you have to live with in some way. so, Altman said. In the face of inflation and rising asset prices for people, this is no longer a feasible, sustainable and realistic way to build wealth.

Now she is working with people in the crypto space to launch their own trading efforts and guide them on how to invest. Altman charges members $ 7.77 per month and offers courses ranging in price from $ 49 to $ 1,499. It also offers a CryptoCharted newsletter for $ 20 per month.

One of Maren Altman’s popular TikTok videos on using astrology to predict crypto trends.

So far, its record is a bit uneven. She accurately predicted the January market correction, but then mistakenly predicted a bull market in May. In fact, crypto prices have fallen.

But Altman said his customers are on for a wild ride. There is a kind of existential nihilism, says Altman. If I don’t have much to start with, there isn’t that much to lose.

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