For the last couple of years it has been shown that people who are engaged in crypto investments the most are the younger generations, and among them, university students.
The financial aid that’s given to university students is intended to pay for the education, textbooks, study materials, and many other expenses. However, there is a new trend among college students that consists in using this money to finance an investment in cryptocurrencies such as bitcoin or ethereum
To corroborate the information of students getting into crypto, a survey was carried out by the “The Student Loan” portal, where they indicated that more than 20% of the university students who receive student loans are using an important part of the money to invest in cryptocurrencies.
But the real question we ask ourselves is, what’s the reason behind the decision of so many young people to take this risky move and invest their loans into such a volatile financial market?
The cryptocurrencies have definitely gotten all the attention of the minds of the university students. While investing in this market with a credit card or a loan is a very risky move since these assets are extremely volatile, many young people think that it may be a good idea to earn a little money and pay off the large student debt they owe to the state or to private entities that facilitate these loans, and maybe in the future make a fortune like many others have already done and dedicated their time to cryptocurrencies while leaving their assignments to get your assignment help online.
Perhaps this practice is difficult to understand because it could be thought that students should use this money to finance all expenses that are generated when studying, such as enrollment, materials or income. However, these new generations prefer to engage into investing in cryptocurrencies than in another type of asset, and if we think about the growth that the first cryptocurrency had (and the rest of them) during 2017, the practice could be turning into something that has made them earn some cash.
However, it would be necessary to see how many of them have really obtained gains from this investment since there are always drastic increases and decreases in prices in the market of the aforementioned assets.
Cryptocurrencies are a risky investment
Although 2017 was an excellent year for all virtual currencies, including Bitcoin, Ethereum and Ripple, now in 2018, currencies such as Bitcoin have plummeted by up to 60%, and for the young people who invested in it, these drastic changes could have been a bad move and could have led them to pay more debts
However, for some reason that not all people can understand, the increase in the use and investment of cryptocurrencies after having been affected to a large extent is still present in the population.
Cryptocurrencies are getting attention by the younger generations
The reality behind the interest that young people have given to cryptocurrencies is the technology behind these assets.
The so-called “millennials”, who are the ones who usually attend universities, are particularly open to learning about new technologies in order to create new and better opportunities. They feel the same way towards this technology which could easily become the main payment and purchase method in a not so distant future, forgetting about credit cards and doing everything online. Young people are accepting cryptocurrencies with open arms, and they are willing to invest large sums of money to see real earnings in the future. To get inspired into doing this kind of decisions, get into http://www.atchuup.com/women-whose-life-can-inspire-everyone/.
But there is one thing we can be sure of, and that is that investing in cryptocurrencies with borrowed money may not be a good option.
The use of financial aid in the United States is in the hands of students, and they can use it at their convenience. This is possible since on many occasions the students are allowed to take out the surplus funds from the cost of the tuition. However, even if that money is given to cover additional expenses such as books, lodging or food, they are not asked for any kind of prove to verify that this is the case.
Therefore, there is no established system to ensure that the debtor is using the excess money for university expenses. This means that borrowers can spend that money any way they want to, and many of them have chosen the cryptocurrency business.
The most important question that students subsidized by these loans should ask themselves is:
Is it worth the risk of the investment going bad and end up losing money? Or does the possible benefit outweigh the risk?
Although many differ on this subject, the final decision is in the hands of each of them. The cryptocurrencies are undoubtedly an advance towards the future, but it must also be taken into account that it is a “new” business that’s probably years away from its peak.
Like this article? Take a second to support us on Patreon!