The Millennials demographic is of great importance to any financial ecosystem or service in the world today. The younger generations have no loyalty to banks or other financial institutions. Moreover, they will not hesitate to switch to a more convenient solution on a whim’s notice. Interestingly enough, they all seem to be avoiding credit cards, which is good news for Bitcoin.
Despite payment cards being the second most commonly used payment tool in the world, the Millennials are not too keen on using these instruments. In fact, the number of people under 35 to have a credit or debit card is at its lowest level since 1989. This research was conducted by the Federal Reserve, who will not be too pleased with the findings.
Millennials Do Not Like Debt Or Banks
As to why this is happening, there are multiple explanations. Growing up in the middle of an ongoing economic crisis does not instil any trust in financial institutions. Since payment cards are issued by banks, Millennials will steer away from these solutions for the foreseeable future.
Additionally, the majority of Millennials has seen relative struggle with [mounting] card debt while growing up. It is very easy to create debt when relying on card payments, but paying it off a different matter entirely. Millennials want nothing to do with debts, and they will try to avoid falling into the same trap as their family members.
To make matters even worse, banks are more reluctant than ever to extend loans to Millennials. Not because of their age, but it is a matter of bad timing, so to speak. Being in debt will only make this struggle harder for Generation Y. Plus, a growing portion of Millennials has to contend with their existing debts already.
All of this goes to show the option of obtaining a credit card is not something to look forward to. It is far too easy to look track of expenses, which will lead to even bigger debts. Being able only to spend what you own is a far better approach, as it creates financial stability without having to worry about loans or other debts.
Bitcoin and other cryptocurrencies could alleviate these debt concerns. Millennials who embrace bitcoin cannot spend more than they have, so there is no overspending issue. Moreover, they would control all of the funds themselves, rather than rely on third parties such as financial institutions. Bitcoin debit cards could prove to be an interesting stepping stone, though.
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.