Many people consider Christmas to be a joyful holiday with gifts to be received, and the preference for gifts may vary from person to person. However, a recent survey has found that nearly half of Generation Z young people in the United States are interested in receiving cryptocurrency as a Christmas gift. Why is this happening?
According to Reader’s Digest, Generation Z is the first generation to grow up entirely in an internet environment. They prefer apps over websites, messaging over emails, short videos over text, and they are more inclined towards mobile payment instead of cash. Convenience and speed almost entirely influence their every choice, including their desired Christmas gifts.
In October, Visa and its partner, Morning Consult, conducted a survey on holiday spending among 1,000 respondents from 12 countries including the United States, Canada, and Mexico.
The results revealed that the fund-strapped and efficiency-minded Generation Z have a very peculiar item on their holiday wish lists. 45% of American Generation Z respondents expressed excitement at the prospect of receiving cryptocurrency as a Christmas gift. (This percentage is significantly higher than the overall American population’s 28%.)
Cryptocurrency is a form of digital currency that uses secure computer codes and blockchain technology, allowing people to send, receive, and store value without relying on banks. Similar to digital cash, cryptocurrency can be used to purchase goods and services, gift items, or simply held as an investment.
Jonathan Rose, CEO of BlockTrust IRA, a California-based cryptocurrency individual retirement account platform, pointed out that there are various reasons why cryptocurrency appeals to Generation Z. Essentially, this generation sees assets like cryptocurrency as a way to safeguard their future financial security.
Rose stated, “Generation Z has experienced the global pandemic and witnessed inflation devalue the US dollar by about 20%.” These young people instinctively know that today’s $100 will buy much less by next Christmas.
He added, “For them, holding assets like Bitcoin, a fixed supply asset, isn’t seen as gambling but as a logical decision.”
Rose further explained that while older generations fear market downturns, the Generation Z is accustomed to market fluctuations. “Generation Z wants to accumulate assets they believe will define the future financial landscape at reasonable prices. Gifting cryptocurrency is evidently a bet that the current downturn is temporary, and the digital economy is permanent.”
One simple way to gift cryptocurrency is by using large exchanges or cryptocurrency trading apps like Kraken. You can purchase cryptocurrency, such as Bitcoin, and then send it to others through a simple payment link. Once the recipient receives a text message, clicks the link, and verifies their account, the cryptocurrency will appear in their wallet. For beginners, this is a user-friendly option.
The Canadian Investment Regulatory Organization reminds individuals that cryptocurrency is a high-risk asset. The field is constantly evolving, and prices may experience drastic fluctuations within a short period. If you choose to buy, sell, or speculate in cryptocurrency, be aware that you may incur partial or complete losses.
The risks associated with cryptocurrency include:
– Some cryptocurrency exchanges and platforms are unregulated, posing significant risks to investors due to the lack of crucial investor protection measures.
– The volatility of cryptocurrency is unpredictable, making it a high-risk asset.
– There is a possibility of being targeted by hackers and fraudsters, who may attempt to steal your keys and access your wallet and cryptocurrency.
– Cryptocurrency is not covered by any protection funds, and if the platform or wallet provider closes or goes bankrupt, you may lose your investment.
In a previous interview with Epoch Times, Director Chen Songxing of the Center for New Economic Policy Research at National Dong Hwa University in Taiwan stated that the Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has emphasized that cryptocurrency should be viewed as a type of valuable security, futures, and other commodities, purely as a “speculative tool”, not as a currency. This is because cryptocurrency lacks a mechanism for actual currency delivery and settlement, which clearly pushes the boundaries of regulation in various countries.
Chen Songxing believes that in the past, cryptocurrency was widely known as a convenient tool for global crime such as money laundering, tax evasion, and bribery, which contradicts the financial industry’s efforts in anti-money laundering. The increasing trend of enhanced regulation worldwide can be anticipated.