Cryptocurrency as a Christmas Gift? Gen Z Is Rethinking

Original Title: Crypto for Christmas? Gen Z-ers Are Cautiously Open to the Idea.
Original Author: Kailyn Rhone, the New York Times
Translation: Peggy, BlockBeats

Editor's Note: In a world where Bitcoin and Ethereum have become cultural symbols, cryptocurrency is no longer just a speculative tool but is also marketed as a "gift for young people." However, under real economic pressure and market downturns, Gen Z's attitude toward crypto assets is far more complex than one might imagine.

This article, through the real experiences of several young people in their 20s, presents a divided and restrained mindset: they do not reject cryptocurrency and are even willing to "receive" it during the holidays. However, when it comes to personal asset allocation, they tend to prefer stable, predictable, and investment choices linked to long-term life goals. For them, cryptocurrency symbolizes both an era of change and a reminder of the coexistence of risk and uncertainty.

The following is the original text:

Wyatt Johnson still remembers the scene in 2021 during the cryptocurrency frenzy, constantly refreshing his Coinbase app. He and his friends were convinced that they were witnessing history, so Johnson decided to invest about $5,000.

But instead of making money, what followed was his cryptocurrency holding—Solana—losing nearly half of its value in a few months.

22-year-old Wyatt Johnson experienced losses when the price of his cryptocurrency, Solana, was halved. Despite this, he is still willing to receive cryptocurrency as a gift for Christmas. Image Source: Jenn Ackerman/The New York Times

Johnson, now 22, has not invested in cryptocurrency since then, but he still follows the field closely, keeping up with the latest developments. Despite not investing his own money again due to the recent downturn in the crypto market, he would not refuse if someone gave him digital currency for Christmas.

"Money is democratizing in ways we've never seen before," said Johnson, who lives in Hustisford, Wisconsin. "Things are changing. I feel it's important for our generation to keep up with these changes."

From a different perspective, cryptocurrency gifts are either seen as a scratch-off lottery ticket or an infinitely promising gift card. Despite the market's volatility, some American youth, especially Gen Z, still seem willing to unwrap gifts like Bitcoin or Ethereum this holiday season.

This doesn't mean that cryptocurrency tops many people's wish lists. As retailers, payment companies, and crypto platforms alike package digital assets as "holiday-friendly" gifts, a larger question arises: Does Gen Z really want to receive cryptocurrency for the holidays amidst an uncertain economic outlook?

Preliminary signs indicate a divide within Gen Z. Those in their early twenties, especially those with investment experience, often hold a cautiously optimistic view—they are open to cryptocurrency but would prefer support in savings, rent assistance, or stocks and other stable, traditional assets. Johnson, for example, stated that he would rather receive real estate-related gifts or funding for AI startup projects than cryptocurrency.

On the other hand, teenagers and young Gen Z members new to investing appear more enthusiastic. Financial experts believe this is likely because they have not yet fully experienced the market's extreme fluctuations. According to a recent Visa report, about 45% of Gen Z individuals said they would be excited to receive cryptocurrency as a holiday gift.

"Gen Z isn't as afraid of volatility as older generations; what they truly fear is stagnation," said Will Reeves, CEO of Bitcoin financial services company Fold. He added that traditional wealth accumulation paths like homeownership seem out of reach for young people, whereas Bitcoin gives a sense of easier access.

22-year-old Russell Kai, introduced to the stock market by a friend two years ago, began exploring investment. While he is open to cryptocurrency, he prefers holding stocks, in contrast. Photo credit: Alana Paterson / The New York Times

Part of the appeal of crypto assets comes from cultural factors. Rick Maeda, a research assistant at algorithmic trading firm Presto Research, stated that Gen Z is the generation that witnessed the rise of Bitcoin and Ethereum on social media. Even after experiencing a series of pullbacks, some young investors still view cryptocurrency's high volatility as normal, even expected.

For many young people, receiving a small amount of cryptocurrency is often the starting point into the investment world. Research from the Financial Industry Regulatory Authority (FINRA) and the CFA Institute shows that cryptocurrency is often the first type of asset held by young investors in their lives. The research found that close to one-fifth of Gen Z investors only hold cryptocurrency and non-fungible tokens (NFTs), or a combination of both; in contrast, Gen X investors mainly focus on traditional products like mutual funds.

But this open-mindedness is emerging at a rather complex time for the industry.

A year ago, the price of Bitcoin once surpassed $100,000. Against the backdrop of this milestone and the election of a pro-crypto president, many enthusiasts predicted that this 16-year-old cryptocurrency would rise to $250,000 by the end of the year.

However, these predictions did not come true.

After briefly climbing to around $126,000 in October, Bitcoin fell back to around $81,000 in late November, a drop of nearly 35%, almost wiping out all gains for the year. (Bitcoin has since rebounded, reaching almost $95,000 on December 9.) Other major cryptocurrencies also fell, with Ethereum seeing a drop of nearly 40% since August.

This volatility is not just a problem for cryptocurrency itself but a reflection of a broader economic environment, such as changing interest rate expectations and the impact of tariff policies. With the Gen Z generation facing widespread job difficulties, moving back in with their parents to save money, or delaying significant life milestones, they prefer to choose stable investments—assets that will not "flip-flop" in the coming years, let alone experience drastic changes in the next few months.

However, some members of Gen Z see this year's decline as an opportunity rather than a warning. Financial analyst Stephen Kates from consumer financial services company Bankrate stated that many young people are taking advantage of the lower prices to invest in cryptocurrency. Nonetheless, financial experts caution that cryptocurrency and lesser-known digital tokens carry higher risks and should only represent a small portion of a more diversified investment portfolio.

For Russell Kai, who resides in Vancouver, Canada, and majors in finance, cryptocurrency has always been the most chaotic corner of the financial world—too much volatility and too little security fence. Two years ago, while still in college, he bought his first stock at a friend's urging, starting his investment journey. Since then, he has adhered to one principle: choosing stable or government-issued assets rather than trendy, popular digital products.

22-year-old Kai mentioned that if he were to receive cryptocurrency as a gift this year, he wouldn't refuse it but would most likely sell it quickly and invest the cash back into the stocks he monitors daily.

24-year-old Clay Lute also expressed that he is open to receiving cryptocurrency gifts, but it is not something he would actively request. Living in Queens, New York, and working in the fashion industry, Lute believes that Bitcoin will recover from its current slump and eventually see growth in both value and practical use; however, he does not believe in a future where a "rising tide lifts all coins" and hundreds of cryptocurrencies coexist prosperously in the long term.

"If I were to plan out a holiday wish list for myself, then putting money into my Roth IRA would clearly be more beneficial for my long-term future than betting on cryptocurrency," Lute said.

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