Introduction
‘20% of college students use their financial aid money to invest in Cryptocurrencies’
According to a new finding in the student loan report, college students in America are so fascinated by Cryptocurrencies that they invest their financial aid in purchasing Cryptocurrencies.
The site polled more than 1000 college students and asked about their investment plans. The survey didn’t ask the amount of money they are investing.
The student loan report’s founder, Drew Cloud, was surprised. He said that students who live under financial hardship are expected to spend their money on groceries, rent, school fees, and other supplies rather than on something that might not exist tomorrow.
Now the question is, why? Considering the fact that if you invest in Cryptocurrencies and lose the money, you will still have a student loan.
Today we are here to find out the answers and see what drives these college students to take such a risk.
Why Are College Graduates Investing Crypto?
No matter where you land on the financial spectrum, you will most certainly hear the name Cryptocurrency. For those who are not aware of what Cryptocurrency is all about, here is a small definition for you.
A Cryptocurrency is a decentralized virtual currency. It doesn’t have any physical state, but it certainly has monetary values. The first Cryptocurrency ever introduced in the market was Bitcoin. Since then, thousands of Cryptocurrency have entered and exited the market.
Now we are on the same page with what Cryptocurrency is all about. Let’s discuss the reason behind College students using their financial aid to invest in Cryptocurrencies.
1. Unreliable Global Economy
COVID 19 pandemic has shown the world just how unreliable the global economy is. When people needed it the most, fiat currencies were not available. The stock market crumbled, industries were forced to close their doors, and people were forced to leave on the cash they had in hand.
The new generation, especially millennials, have lost their faith in the current financial system. For them, Cryptocurrency is more reliable.
2. High Inflation Rate
These college students are aware of the current global economy. The COVID 19 has shown how fragile the traditional financial economy is. The younger generation has lost their faith in the current financial system and is searching for something equivalent; they come across Cryptocurrencies. Being technologically literate, these youngsters were comfortable with digital currency.
As we have said, these college students are literate. They are well aware of the current inflation rate and banking interest rate. Unfortunately, there is no point in keeping your money in banks as it will lose value over time.
This is why these college students are using Cryptocurrencies to secure their finances. If you also want to secure your finances from inflation, shift all your assets to Cryptocurrency using the bitcoin era.
3. Unreal ROIs
When we talk about investing, we can only think about doubling out money only with a long-term investment plan. However, Cryptocurrency is different. Cryptocurrency is highly volatile. This gives the investors a chance to make a high profit on their investment.
You can never be sure about Bitcoin’s price. For instance, the price of one BTC was below $1000 in march 2017, and in just a matter of a couple of months, the price was already touching $20,000.
In fact, 2021 witnesses Bitcoin completing a successful rally from $10K to $60K.
This shows that despite being a highly volatile market, users might see this feature to make money in a short period of time.
4. Independency From The Central Authority
Cryptocurrency is a decentralized currency. That means it is not regulated by a single authority or central bank. This gives you full control over your assets. In addition, without any authority, the only participants in a transaction are the sender and receiver.
Theoretically speaking, it allows the user autonomy and control over their money as the price of the Cryptocurrency is not controlled by any policies. And generally, this is the reason why users invest in Cryptocurrency.
5. Anonymity & Transparency
Cryptocurrency transactions are said to be anonymous. This ensures that no public tracking is down over your transactions. Furthermore, the transactions are transparent. Every member of the network can see the transaction taking place.
Despite transactions being completely viewable, they are still safe, thanks to Blockchain technology.
For added security, you can easily generate a new address to keep your digital data safe if your current wallet is exposed to the public.
Conclusion
Now you know why students are so attracted to Cryptocurrency. We hope that you have got all your answers to the question that made you land here. To know more about Cryptocurrency and investment, contact us.
