The combination of online technology and the millennial generation has put a lot of once-strong industries like the starter homes market and toy industry on the shelves. Today, millennials may be on the verge of killing banks because of the arrival of cryptocurrency.
Banks do not have a good relationship with the millennial generation have experienced the 2008 financial collapse, which makes it hard for them to grow their finances amid growing debt from college or bank loans. Millennials have no way of earning interest on their cash deposits, but banks still charge consumers about 25 percent credit card interest.
A 2018 study by public relations company, Edelman, shows that millennials are now afraid to trust banks because most of them still view that the traditional financial system only favors the 1%: the rich and the powerful. They are also worrying over the security of the banks’ global system that may be prone to hacking. The study also reveals that millennials believe that the world will experience another financial crisis.
The reemergence of cryptocurrency is starting to give millennials another avenue for them to be able to manage their finances. Some millennials already own Bitcoin or other forms of cryptocurrency. In the Edelman study, 25% of wealthy millennials have cryptocurrencies while 74% believes in the online financial system’s security, which means bad news for banks.
Cryptocurrency is starting to gain the millennials’ trusts while banks sink deeper into a hole. A study by blockchain platform Sustany Capital reveals that 88% of millennials want to use cryptocurrencies for investments while 42% believes that it is an excellent way to start a savings fund.
Millennials are starting to turn the tide against banks because the technological advancements gave birth to cryptocurrency. Whether it is a trend or a long-term asset, cryptocurrency proves to be a risk worth taking for millennials over banks.