Forbes: Generation Z Will Completely Change the Bitcoin Market

Foresight News
2023-07-12 17:57:22
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The financial values of Generation Z are almost completely aligned with the core principles of Bitcoin.

Original Title: Gen Z Could Completely Change The Bitcoin Market. Here's How

Author: Brianna Honkawa d'Estries

Translation: Luffy, Foresight News

The influence of Generation Z extends far beyond TikTok makeup tutorials and quirky fashion culture. According to a Bloomberg report, the youngest generation of adults currently has $360 billion in disposable income, and they are busy reshaping cultural trends and redefining financial paradigms. Bitcoin inherently aligns with the values of Generation Z, such as transparency, inclusivity, and digital-native tools. Therefore, Generation Z may further drive the development of the Bitcoin economy.

In interviews with several members of Generation Bitcoin (a student community dedicated to learning about Bitcoin), they generally expressed their fondness for cryptocurrency.

Autumn Domingo, co-founder of Generation Bitcoin, stated, "My generation is very supportive of each other. We are very inclusive, respect everyone, and have a genuinely equal mindset. I think this is an important part of the principles of Bitcoin."

Given the discrepancies in defining the birth date range of Generation Z, understanding their values can be a challenge. A McKinsey report shows that Generation Z includes those born between 1995 and 2010, while Ernst & Young narrows it down to 1997 to 2007. Generation Z is situated between Millennials and Generation Alpha, characterized by spending a significant amount of time online. They are the first generation to grow up entirely in the digital age, surrounded by smartphones and social media.

According to Ernst & Young's 2021 Generation Z study, this generation prioritizes authenticity above all else, even more than values like wealth. Generation Z seeks genuine connections and experiences, valuing transparency and authenticity in individuals and brands. They prioritize diversity, inclusivity, and equality, advocate for social justice causes, and actively engage in activism through digital platforms.

"Bitcoin is about freedom, which means taking control of your future and life. This is something Generation Z values and wants," Domingo said.

Ella Hough, a member of Generation Bitcoin and project lead, agreed, stating in an interview, "Bitcoin includes everyone on the planet."

According to Ernst & Young's report, Generation Z also has a natural affinity for digital tools, social media, and online communities, which have become their primary channels for self-expression, especially in connecting with friends. Thus, digital currency naturally aligns with Generation Z's worldview.

Financial Values of Generation Z Align with Bitcoin

According to a 2023 report from the Financial Industry Regulatory Authority (FINRA), over half of Americans aged 18 to 25 are involved in investing, with 19% specifically investing in cryptocurrencies and NFTs. The report shows that cryptocurrency is the most popular choice among American Generation Z investors. Clearly, as Generation Z matures, there is vast growth potential for the Bitcoin economy in the U.S.

Domingo emphasized the growing appeal of Bitcoin to Generation Z, stating, "Bitcoin excites teenagers because it is something new. Just like Generation Z uses Instagram instead of Facebook, cryptocurrency is like Instagram. Stocks, bonds, and other investments feel like Facebook to us."

When examining the financial goals of Generation Z, the FINRA report indicates that those who do not invest still focus on meeting their basic needs. They try to avoid living paycheck to paycheck and hope to have enough money to travel or take vacations. However, Bitcoin remains relevant for young people with limited disposable income. By earning Bitcoin instead of purchasing digital assets as investments, Generation Z Bitcoin users can balance short-term expenses with long-term financial security.

There is no doubt that Generation Z faces a more challenging economic environment than their predecessors. Deloitte's 2023 survey of Generation Z and Millennials shows that rising living costs and high unemployment rates are the top concerns for Generation Z. More than half of Generation Z respondents indicated that they live paycheck to paycheck.

Overall, one of the most common barriers preventing Generation Z from investing is the lack of savings or reliable income, as well as a lack of investment knowledge. Perhaps this is why many Generation Z Bitcoin users find it easier to start accumulating wealth through earning Bitcoin via mobile games or buying small amounts of Bitcoin using Venmo or Cash App than through traditional investment options like stocks.

"Generation Z often thinks you have to buy a whole Bitcoin," Hough noted, adding that smaller units of Bitcoin are more easily accepted. "It would be great if exchanges used satoshis as the unit for Bitcoin."

How Generation Z Earns Bitcoin

What would you think if I told you that Generation Z can earn Bitcoin through their daily online habits, such as posting pet photos and streaming podcasts? This allows Bitcoin newcomers to own Bitcoin even without significant savings or disposable income.

By participating in various platforms designed for this purpose, such as Slice for browsing the internet, Fountain for listening to podcasts, ZBD and TNHDR for playing mobile games, and even Nostr for social media interactions, Generation Z can accumulate inflation-resistant assets in the digital world they inhabit daily.

In summary, the financial values of Generation Z align almost perfectly with the core principles of Bitcoin. This makes Generation Z a key demographic willing to embrace Bitcoin as an alternative to traditional financial tools, and they may even reshape the future of financial markets.

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