Dear Generation Z
Dear Generation Z,
The investing world is in the process of changing profoundly and you have an opportunity to take advantage of it at an early age.
You are growing up in the age of QE infinity. A time when all the world's problems are solved by printing more and more money.
You will likely experience negative interest rates, unfunded promises (more than just social security), real estate and asset bubbles, and stock markets that are propped up by governments and artificial confidence.
Which is something that can go away at any time, and once lost is very difficult to regain.
Due to the money printing, markets will be more distorted from actual economic activity that at any time previously.
So the best play is to invest in real estate, right?
Well, sort of, I mean if you can. I don't believe many of you will have that option, at least for a long time.
In order to do that you will need to save.
With the current target inflation rates, and interest rates, the money you are saving will likely be losing value against the very asset you are saving for.
Which means you will be going nowhere, and with housing prices continuing to climb, that option may be closed to many in your generation forever unless there is a large monetary windfall in your life or you are one of the few that lands a significantly above average paying job.
Interest rates are already starting to go negative all over the world. Trump is saying he wants the US to follow suit and abandon its strong dollar policies. It won't be long before your savings accounts go to zero or negative interest rates.
Pensions and Social Security are already under funded.
The amount you lose on your paycheck to try and make up for this is likely only gong to grow over time, which will further depress your take home pay.
Which means even less disposable income for saving etc.
Investing in stocks might seem like a worthwhile endeavor as long as the music doesn't stop. With QE on the horizon yet again, markets will likely diverge further from their economic fundamentals than at any time prior.
As long as you can ride the escalator up and not get caught in the elevator down, that might be an option for you.
However, father market will eventually be too powerful for even the largest governments to prop up, and at that time there will be a reckoning in the markets and the financial system and a massive reset.
Given all of this, it makes more sense than ever before to have at least some exposure to bitcoin.
Bitcoin has been alive in the wild for over 10 years now, with no network downtime.
It's value has increased exponentially since it was created.
It is not controlled by any governments, it can transcend borders with ease, and it possibly represents the future monetary system as it is a truly open free market form of money, which is getting more and more attractive for some of the reasons mentioned above.
Downside?
Like anything in life, it's future gains are not guaranteed, and even if all of the above are true and continue to come true there is no guarantee that bitcoin is the investment that ultimately benefits from it.
Upside?
The returns could mirror some of the returns that have already been seen in bitcoin over the past 10 years, which are staggering.
Returns that could give you real, lasting, possibly even generational wealth that you may not find anywhere else.
It makes a ton of sense to invest a small amount of savings or from your paychecks to give yourself this opportunity.
There don't appear to be many other opportunities like this in store for you in the near future.
Good luck and stay informed my friends!
Image Source:
https://www.kasasa.com/articles/generations/gen-x-gen-y-gen-z
-Doc
@jrcornel totally agree with what he exposes in this post, I think that the cryptocurrency will play an essential part in the life of the human being very soon, I think that very soon everyone will be using this cryptocurrency system, maybe as you said being the bitcoin and the money cash will go down in history.
I think there is at least a decent chance for that happen.
I as a Gen Z i'm very touched by this words. I've already understood it all, and I'm sure crypto is the future, the current system we live in one day or other will fail massively in a global way, this is obvious. So for the moment practically all my money is going to crypto, i don't believe anymore in the current system, and perhaps gen z is going to see that more easily than older generations because of relatively low time in this system.
Nice. Just be careful you only invest what you can afford to lose. Nothing is guaranteed in this life beyond death, and taxes. Though, playing the probabilities can certainly increase your chances of success!
Yes, thank you for the advice!
A number of bitcoin like cryptos are still sticking to their lowest. I think people need to invest in the coins they think are best for their interest and would stick to it for a longer period to get returns like bitcoin. But as you said in the downside section that simply investing in the coins does not guarantee you the returns, so people should be making informed choices and maybe most of them will earn the "Generational Wealth".
I think very few will, but some likely will, bitcoin has probably the best chance of any due to several factors, including its name brand.
I saw a few posts where steemit was mentioned, one of them was posted on a reputed media platform, showing the upside of using decentralized social media platforms and earning incentives for doing so. I think if people invest in steem before the release of the SMTs then only it will be a good chance to get massive returns from steem currency.
It could for sure. Steem just needs to increase its user base. If it can do that, the price will take care of itself. Not many apps in crypto have large users bases currently.
I think you are picuring it wrong. Crypto is not about a promised future of wealth, and you will dissapoint many people if you picture it that way. Crypto is all about taking the power out of banks and governments, it is an act of rebellion, not some fancy new cool way of making money. The goal is to opt out of banking and social security scams, stop feeding ecocidal companies by buying their stocks, starve the beast. All the while enjoying a fully fledged alternative financial system.
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The odds of that actually happening are even less than what I am projecting as a possibility in terms of wealth creation. Governments have armies, they will not give up control over their money, period. Bitcoin can coexist as a better store of value than gold.
Thank you for your brilliant article. I could not agree more. I hope readers will do themselves a favor and start to buy moderate amounts of satoshis monthly and then hodl.
Thank you for the kind words (and also the vote!). Yes I think they have a unique opportunity where it may not take a tremendous amount of investment to possibly change their lives for the better in the future. Due to the asymmetrical return potential, bitcoin is in a class all by itself.
You speak true words and for a long term investment cryptocurency might be the most rewarding of them all. I as a Millennial am pacing my investments and only a small profit went that way, but it sure did. My only regret is that I did not sell when the prices were high, but I still believe in the future of it.
It is far too risky to put all your eggs in the bitcoin basket (or some other crypto), but it should make up a percentage of your available investing portfolio for sure. It's just the overall percentage that is debatable. :)
I couldn't agree more with @jrcornel.
Just spread your investment on real Cryptos with great potentials. Don't put all your eggs in one basket
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Z for zombies or
Z for zooooom
Like fast time generation
Good post
Hopefully not the first one! I read that that a few mutations of the rabies virus, and we wouldn't be that far off from a zombie virus.
Z Generation is smart than all previous generation.All crypto coin gone downward last 2 years.Almost bottom are complete.They are slowly rising.we can see a great year 2020 biggest than 2018 rising move.So, it will be great move for investment in crypto.But all glitters is not gold.Need to find good one.
Currently they make up 25% of the population, bigger than boomers and millennials.
Hi @jrcornel
With QE, printing money based on debt, printing and pumping even more into REPO market .... well, we're surely heading towards difficult "reality check" sooner than later.
I think, that this solution is working fine and will be working fine as long as we will all believe in value of those printed money.
Do you think that negative interest rates would indeed boost spending? Or will people start saving their money even more now, knowing that whatever interest rates on their savings they had before ... it's already gone.
Yours,
Piotr
I can't see why anyone would save anything with negative interest rates to be honest, so yes it should encourage people to spend more.
Hm I thought I was a millennial (1995) but it looks like the graphic puts me at Gen Z.
Barely missed it! Though I think there might be slightly different ranges listed for each category out there.
I didn't realize that I posted this reply without completing my thoughts.
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