If you’re a part of a younger generation, it might be interesting for you to find out why your friends might act bullish about cryptocurrencies. Even if you’re not, it’s a good thing to understand a bit about bull and bear investing types.
In this article we’re going to discuss what bull investing is, what bear investing is, and the reasons younger generations are more bullish on cryptocurrencies. It has a lot to do with personality, but it is also a lot about the trends in cryptocurrency markets.
What Is Bull Investing?
When you’re a bull investor, you have an opinion that a particular asset is going to see a rise in its value. The key characteristic of bull investors is the optimism they have when they try to profit from a possible increase in the value of a stock. Other characteristics include:
- Longer waiting period: Bull investors wait longer periods to see the rise in their stock prices. It’s typically a rise of at least 20%, and the usual waiting period is over two months.
- High level of confidence: When you invest as a bull investor, you have a high level of confidence in the asset’s rise you’re investing in. You’re almost absolutely certain that the price will grow.
- Long-period optimism: The bull investor’s optimism doesn’t falter until there truly is no more hope for his assets. This means that they’re certain of something, and optimistic about it till the very end. You’ll notice the market correspondence of all these traits.
What Is Bear Investing?
When you’re a bear investor you believe that the market prices are going to go down, and you can try to gain a profit on the decline of those prices. Instead of being sheer optimists, bears are typically pessimistic about certain markets and their economies. Bear market traits:
- Longer decline: Instead of describing the investor, we’ll go into the market. With a bearish market, you’ll see a long decline in the value of assets on the market. It lasts over two months with a 20% loss at least.
- Weakening economy: This is a typical situation because bears are pessimistic about the value of an asset, and when the economy is weakened, you can see symptoms of bearish trading on the market.
- Unemployment rate rising: Another symptom of a market fit for bear investors is the rise in the unemployment rate. When there’s a lot of unemployment, something is losing its value, whether it’s a currency or a commodity.
Younger Generations Being Bullish Reason
Now that you understand the traits of a bull and a bear investor, it’s necessary to understand the characteristics of the younger generations. But, it’s also necessary to understand the characteristics of cryptocurrency markets.
- Millennial Characteristics
First, millennials have an intuitive knowledge of technology. They have a head start against the older generations simply because they understand the current technological developments more, and this is a great thing. This also means that they understand cryptocurrency better.
The reason millennials act bullish on cryptocurrencies is that half of the millionaires in this generation stated that 50% of their wealth is in cryptocurrencies. Of course, they’re expecting a rise in the value of those assets.
- Generation Z Characteristics
Generation Z is the first generation that doesn’t know what the world was like without the internet. Because of this, they have an advantage over most generations, but they don’t compare well with millennials.
See, millennials grew up with the internet, and the Internet was in development during their growing up. So, millennials became closely acquainted with how the internet works and what goes and doesn’t.
Gen Z might be more bullish because they simply believe that the value of cryptocurrencies will burst once the world figures out its potential. According to buidlbee, they also adore meme coins. The first Cryptocurrency is 14 years old. That’s still little time and so much value gained.
- Cryptocurrency Market Trends
The last reason younger generations are more bullish on cryptocurrency is the belief that the surge that happened with bitcoin is going to happen again. We’re going to discuss the fluctuation in the original coin, bitcoin.
In the beginning, it was worth nothing, and then, well, it was still nothing for two years. Then, in 2011, it became $1. After that, we can see a rise in 2013 when the value was $1,242. It took almost 4 years for the value to break $5,000, etc.
That’s why younger generations believe that the best thing to do is buy a cryptocurrency and hold it for a longer period until the price grows. However, this is counterintuitive because when many investors buy something and don’t sell it for a longer period, the value might remain the same for the said period.
Conclusion
There you have it. It’s easy to understand why younger generations are more bullish on cryptocurrency. It’s because their portfolios rely on crypto mostly, and they simply have a newer generation mindset filled with incredible situations in crypto surges.
