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- An American study showed that young bitcoiners are an exception to the short term mentality of spending money
- 28% see bitcoin as a short-term investment
- 36% people from the age of 18-24 years see Bitcoin as a long-term investment
Many phrases like ‘Enjoy the moment’, denote a short-term mentality that many might associate with the younger sector of the population. But young bitcoin-ers seem to be the exception.
At least, this is indicated by a study from the American consultancy Civic Science. This pollster asked 6,788 Americans the following question: “What is, or would be, your main reason for investing in cryptocurrencies (such as bitcoin or ether)?”
The question had six possible answers: short-term investment; long-term investment; fast, cheap and secure transactions; coverage against adverse economic conditions; independence from government meddling; and others”.
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Cryptocurrency promotes its users low time preference
A graph of the analytical signature divides the responses by age. It is observed there that holding bitcoin (BTC) as a long-term investment leads the youngest sectors of the surveyed population. The percentage reaches 36% in the case of individuals between 18 and 24 years old.
On the one hand, this could be considered obvious, if life expectancy is taken into account.
Thinking about keeping some bitcoins or even some satoshis, for about 5, 10 or 20 years, in the hope that their price will increase, does not seem so far-fetched when according to the statistics one still has it left. a good stretch of your life to enjoy the goods and services that can be purchased with them.
But, on the other hand (and knowing that it is the young sector of the population that knows the most about bitcoin), it is an indicator, perhaps, that the cryptocurrency promotes its users’ low time preferences and a long-term mindset regarding finances.
These low temporal preferences refer to the fact that they reduce present expenses to benefit from the future valuation of the asset. This is something that happens with bitcoin, but not with the currencies of the States since all of them are inflationary.
Jimmy Song opines that Bitcoin promotes the virtue of prejudice
Renowned Korean-American bitcoiner Jimmy Song is convinced that BTC – unlike fiat money – promotes the virtue of prudence.
This is what he said during his participation in a conference reported by CriptoNoticias in which he detailed: fiat money is the opposite and can be seen in the huge debts that everyone has.
The Civic Science study indicates that, among respondents older than 55, those who see bitcoin as a short-term investment stand out numerically (28%). They show much more tolerance for financial risk, the report details.
Since the study does not investigate the reasons, it could be assumed that this occurs because the percentage of their assets that they are willing to invest in BTC is lower than that of younger people.
In this way, the volatility of the cryptocurrency would not affect them as much as they have a more diversified portfolio. Another possibility that would explain this answer is that this age sector has less knowledge about bitcoin and its market cycles.
Unless you have a great skill for trading, it is less likely that someone can obtain a significant return with BTC in short periods than to obtain it by trading the crypto active for a few years.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
