The conversation about cryptocurrency almost always tends to focus on younger generations, specifically towards millennials and Gen Z.
We at Celsius Network definitely believe that crypto has the power to change the lives of the youth for the better, but what about older generations? Specifically, is there anything in crypto for members of Generation X, or Boomers? Short answer — absolutely. Here’s how cryptocurrency and blockchain can be of direct benefit to those born before 1980.
Never Forget 2008
When the 2008 financial crisis hit, members of Generation X were probably just beginning to get a foothold on their retirement savings. Boomers, on the other hand, we’re already likely heavily invested in stocks, bonds, and other forms of retirement investments.
But as we all know, when the 2008 crisis hit, stock markets across the world dove downwards so sharply and so steeply that many retirement savings accounts from that time have yet to recover even over a decade later. What’s unique about the 2008 crisis is not just that it was such a sharp and sudden decline, economies have definitely seen that before, it was the all-encompassing nature of the drop. Not only did stocks drop, but savings account interest plummeted to near zero and has practically never recovered. Bonds are also frequently hovering at all-time lows for their returns, and CDs are essentially worthless, with a 3% return on a five-year lockdown period being the norm.
This is where crypto comes in. Stocks, bonds, mutual funds and the like are all interconnected. If a large enough event strikes causing widespread losses, those losses will inevitably infect other asset types, causing a nearly inescapable downward trend. But cryptocurrencies like Bitcoin and Ethereum are totally different. They are highly uncorrelated assets. In simple terms, that means even if the stock market drops, cryptocurrencies won’t necessarily be dragged down with them.
That’s not to say that one should put all their life savings in cryptocurrency. Instead, adding cryptocurrency to a diversified portfolio could be a strategy for even more stability. We feel that members of Generation X and the Boomers know all too well what it’s like to watch one’s life savings disappear like a flash in the pan. That’s why we think the diversified and uncorrelated means of storing value provided by cryptocurrency is something no one should overlook.
Interest Rates Closer to Zero Than Ever Before
Saving cash is an important strategy not just for building a retirement fund, but for protecting one’s own family and maintaining financial independence.
In decades past, 5% interest on a savings account at a bank was considered typical. Today, that is practically unheard of. According to GoBankingRates, the average interest rate on a savings account in the United States is 0.08% APY, but “many of the largest financial institutions in the U.S. [are paying] just 0.01% APY”. This trend is showing no signs of changing, as banks are raking in profits in spite of offering a pittance in returns on deposits.
Cryptocurrency is an entirely different animal, however. Startups like Celsius Network are able to launch competitive and scalable services that can beat the banks at their own game while giving our users their honest, fair share of the rewards.
As crypto prices continue to stabilize over time, more and more opportunities will arrive that will allow consumers to earn real rates of return in the form of interest on deposits.
We took this idea to heart when we created Celsius, and we have consistently offered between 3% and 7.5% interest on a wide and diversified set of cryptocurrency assets. This means not only does holding onto cryptocurrency allow one to benefit from potential long-term increases in price, but also in the short-term with comparatively high rates of interest paid out weekly.
And so, for those of us born before 1980, perhaps it’s time to get nostalgic about high-interest savings like it used to be and experience it once more through the transformative power of cryptocurrency.
Saving for Future Generations
As people age, they inevitably begin to plan for how they can best help their children and grandchildren after they are gone. Traditionally, this has been done through the direct transfer of physical assets such as hand-me-downs, and through the legal transfer of accounts and their contents through the use of a lawyer or law firm.
Obviously, it’s much easier to transfer physical belongings than financial ones since it can be done entirely without the need for any expensive intermediaries.
One seldom considered benefit of cryptocurrencies is that they can be passed down to future generations just as easily as a physical hand-me-down object. A simple example could be a secured copy of a private key such as a paper wallet or other means of secure key storage.
Without the need for banks, lawyers, or anyone else looking to profit from your passing, cryptocurrencies can allow you to transfer your life savings to your chosen descendants quickly, easily, and without any interference.
The Young Get All the Attention, But…
Cryptocurrencies and blockchain technology are definitely exciting for young people. It’s entirely possible that this technology will greatly change the way in which they interact with the rest of the world. But the truth is, cryptocurrencies are for everyone. It doesn’t matter your age or any other attribute about yourself. All you need to do is reach out and embrace it, and it will unlock all of its wonderful mysteries for you much the same way as it would for a younger person.
And when you’re ready to dive in head first into cryptocurrencies, Celsius Network will be there to help you along the way.