Crypto is not just speculation; it's becoming a holiday gift option for Generation Z.

By Kailyn Rhone, the New York Times

Compiled by: Peggy, BlockBeats

Original title: Cryptocurrency as a Christmas gift? Investment choices from a Generation Z perspective

Editor's Note: With Bitcoin and Ethereum now symbols of popular culture, cryptocurrencies are no longer just speculative tools, but have also been packaged as a "gift for young people." However, under the pressure of the real economy and market downturns, Generation Z 's attitude towards crypto assets is far more complex than imagined.

This article, through the real-life experiences of several young people in their twenties, presents a conflicted yet restrained mindset: they are not averse to cryptocurrencies, and are even willing to "accept" them during holidays, but when it comes to personal asset allocation, they prefer stable, predictable investments that are relevant to their long-term life goals. For them, cryptocurrencies symbolize a changing era, but also serve as a reminder of the coexistence of risks and uncertainties.

The following is the original text:

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

But the result wasn't making money; instead, his cryptocurrency, Solana, lost nearly half its value within a few months.

 22-year-old Wyatt Johnson suffered losses after the price of his Solana cryptocurrency holdings halved. Despite this, he'd still be willing to receive cryptocurrency as a Christmas gift. Image credit: Jenn Ackerman / The New York Times

Johnson, now 22, has not invested in cryptocurrencies since, but he still follows the field and keeps up with the latest developments. Although he won't invest his own money now due to the recent downturn in the crypto market, he wouldn't refuse a gift of cryptocurrency for Christmas.

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

Depending on the perspective, cryptocurrency gifts are either like a scratch-off lottery ticket or a gift card with unlimited potential. Even with volatile markets, some young Americans, especially Generation Z, seem willing to open gifts like Bitcoin or Ethereum this holiday season.

This doesn't mean cryptocurrency is at the top of many people's wish lists. While retailers, payment companies, and crypto platforms are packaging digital assets as "holiday-friendly" gifts, a bigger question arises: Given the uncertain economic outlook, do Gen Z really want to receive cryptocurrency during the holidays?

Initial signs indicate a divide within Generation Z. Those in their twenties, especially those with investment experience, tend to be cautiously open—they are open to cryptocurrencies, but most prefer support in the form of savings, rent subsidies, or more stable, traditional assets like stocks. Johnson, for example, stated that he would prefer real estate-related gifts or funding to support his AI startup project rather than cryptocurrencies.

Teenagers and young Gen Z members who are just starting out with investing are showing even more enthusiasm. Financial experts believe this is likely because they haven't yet experienced the dramatic fluctuations in the market. According to a recent Visa report, approximately 45% of Gen Z said they would be excited to receive cryptocurrency during the holidays.

“Generation Z isn’t as afraid of volatility as older generations; what they’re really afraid of is stagnation,” said Will Reeves, CEO of Bitcoin financial services company Fold. He added that traditional wealth accumulation paths, such as buying a house, seem out of reach for young people, while Bitcoin feels more accessible.

 Russell Kai, 22, began exploring investing two years ago after being introduced to the stock market by a friend. He's open to cryptocurrencies but prefers holding stocks. Image credit: Alana Paterson / The New York Times

Part of the appeal of crypto assets stems from cultural factors. Rick Maeda, a research associate at algorithmic trading firm Presto Research, says Generation Z is the generation that witnessed the rise of Bitcoin and Ethereum through social media. Even after a series of pullbacks, some young investors still view the high volatility of cryptocurrencies as normal, or even taken for granted.

For many young people, receiving a small amount of cryptocurrency often marks their entry into the world of investing. Research by the Financial Industry Regulatory Authority (FINRA) and the CFA Institute shows that cryptocurrency is frequently the first asset class held by young investors. The study found that nearly one-fifth of Gen Z investors hold only crypto assets and non-fungible tokens (NFTs), or both; in contrast, Gen X investors primarily invest in traditional products such as mutual funds.

However, this open attitude is emerging at a rather complex time for the industry.

A year ago, the price of Bitcoin briefly broke through $100,000. Against the backdrop of this milestone and the election of a pro-crypto president, many enthusiasts predict that the 16-year-old cryptocurrency will rise to $250,000 by the end of the year.

However, these predictions did not come true.

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

This volatility isn't just a problem with cryptocurrencies themselves, but a reflection of the broader economic environment, such as changes in interest rate expectations and the impact of tariff policies. Given the widespread employment difficulties faced by Generation Z, the decision to move back to their parents' homes to save money, or the postponement of important life milestones, they are more inclined to choose stable investments—assets that won't "turn against" them in the next few years, let alone experience drastic changes in the next few months.

However, some Gen Z individuals see this year's decline as an opportunity rather than a warning sign. Stephen Kates, a financial analyst at consumer financial services company Bankrate, said that many young people are taking advantage of the lower prices to invest in cryptocurrencies. However, financial experts caution that cryptocurrencies and lesser-known digital tokens are high-risk and should only constitute a small portion of a more diversified investment portfolio.

For Russell Kai, a finance major living in Vancouver, Canada, cryptocurrency has always seemed like the most chaotic corner of the financial world—too much volatility and too few safety barriers. Two years ago, while still in university, he bought his first stock at the urging of a friend, and has been investing ever since. Since then, he has adhered to one principle: choosing stable or government-issued assets, rather than trendy, popular digital products.

22-year-old Kai said he wouldn't refuse cryptocurrency as a gift this year, but he would most likely sell it quickly and invest the cash back into the stocks he follows every day.

Clay Lute, 24, also said he's open to receiving cryptocurrency gifts, but it's not something he would actively request. Lute, who lives in Queens, New York, and works in the fashion industry, believes Bitcoin will recover from its current slump and eventually grow in both value and practical use; however, he doesn't believe in a boom era where hundreds of cryptocurrencies coexist for a long time.

"If I could create my own holiday wish list, then putting money into my Roth IRA would clearly be better for my long-term future than betting on cryptocurrency," Lute said.