A significant rise in bitcoin purchases at Square’s Cash App, which targets millennials, is making some wonder if there’s a generational trend and just what that might mean at a systemic level.
The latest figures from Square show bitcoin purchases grew in the third quarter from $42 million last year, to nearly $150 million for this year.
Within a nine month period in 2018, $114 million worth of bitcoin were sold. The equivalent from 2019 is nearly $340 million.
“First-time bitcoin buyers have approximately doubled,” Square said. Further telling its investors, which saw a 6% rise in Square shares, that the revenue in the third quarter for all stock purchases was $159 million from the Cash App.
In other words, almost as much money was spent on bitcoin as on the stock market by what is presumed to be a mainly millennial demographic as that was heavily targeted with rewards like $1 off coffee purchases.A Shift?
In the grand scheme of things, the figures are small, but then in the grand scheme of things millennials have only began taking positions of wealth accumulation, with most still at junior levels.
Within that context, the figures might not be too small, especially if one considers the combined crypto market cap of $250 billion.
But that’s still almost insignificant compared to the global stock market cap of around $100 trillion. Yet, as that wealth gradually moves to a new generation through inheritance or through greater wage bargaining power – as well as arguably through a bigger voice in politics – a very big question arises.
Specifically, whether they will send that wealth back to the stock market, or whether they will choose to opt out to a parallel financial world that kind of does the same thing.
The 50/50 split suggests a bit of both. They like the convenience of bitcoin, which you can easily move and send to your friends or people online, unlike granny stocks, but they also want some...