T-Bond Yields At 3%
The US benchmark 10-year Treasury bond now yields an interest rate of 3%+, yet Bitcoin continues to find favor amongst millennials. Traditionally, the markets have witnessed a flight of capital from stocks to bonds when yields are rising in the fixed income market, while uncertainty persists in the equity market.
However, with the emergence of this new asset class, which promise sgreater speed at lower transaction costs with less regulation; a lot of investors, especially millennials, are now considering piling into Bitcoin and other such crypto-assets.
30% of Millennials Prefer Bitcoin
According to a Blockchain Capital study, 30% of millennials would prefer to own $1,000 of Bitcoin over $1,000 of government bonds. The preference is higher among male millennials, where 43% of candidates surveyed said they prefer owning Bitcoin over T-bonds.
When compared to stock, 27% of millennials surveyed expressed a preference for Bitcoin. The percentage goes further down in comparison to other assets; 22% of millennials prefer Bitcoin over real estate and 19% of millennials prefer Bitcoin to Gold. It goes to show that, at least in the millennial investment portfolios, Bitcoin has the most potential to replace bonds.
27% Trust Bitcoin More Than the Big Banks
The study further reveals that 48% of all millennials surveyed agree that Bitcoin is a positive innovation in financial technology, and 27% of them think that Bitcoin is more trustworthy than big banks (e.g. Wells Fargo, JPMorgan, Goldman Sachs). Also, 42% of millennials agree that most people will be using Bitcoin in the next 10 years.
This survey was conducted online within the United States by Harris Poll on behalf of Blockchain Capital from October 18-20, 2017 among 2,112 U.S. adults, aged 18 and older.