Original article written by Aleksandar Hrubenja of the Bankless Times and can be viewed here.
- 13% of Gen Zers are comfortable with taking big financial risks for big rewards, compared to only 3% of Boomers.
- 18 to 24-year-olds' status as digital natives might serve as a foundation to better understand and access digital assets.
Recent marketing research showed that more than half of young people would like an NFT or cryptocurrency for Christmas. This is somewhat surprising, seeing as how digital assets aren't what you'd expect for a Christmas present, as well as when we consider that general interest in said assets has gone down this year.
Jonathan Merry, CEO of BanklessTimes.com
It's interesting to see young people’s dedication to crypto and NFTs. Even after FTX’s collapse, and the drop in the crypto market, Gen Z is still interested in these technologies. Digital assets are the future, and the younger generations definitely understand this.
BanklessTimes.com looked into why young people have so much faith in NFTs and cryptocurrencies.
Young People Are Digital Natives
It's very interesting to note that, despite the instability of the digital asset market, 51% of young people would like an NFT for Christmas, while 55% would like a cryptocurrency. But where does this interest come from?
Generation Z, people born in 1997 or sooner, grew up with social media and the internet.
As digital natives, they are more accustomed to finding information online, with many using YouTube and Twitter to seek advice from “crypto-influencers”.
Furthermore, they find it much easier to navigate these online spaces. In fact, research shows that social media and games are the most common way teens find friends today. Roughly 57% of teens have made a new friend online at one point or another.
Furthermore, data from 2021 shows that 70% of Gen Z-ers made a purchase of digital items within a video game.
This all leads to a strong foundation in order to understand these new technologies and to foster the adaptability necessary to make the most out of digital assets.
Risk and Accessibility
Another important factor is the willingness to embrace risk. It's no secret that crypto and NFT markets are especially volatile.
Note that roughly 13% of Gen Z, and 11% of Millennials, are much more willing to take on a big risk in order to get a big reward. In comparison, only 3% of Baby Boomers are willing to do the same.
Furthermore, there is a rise in younger artists entering this field. The NFT art marketplace is very accessible, both to enter and to observe. Often all you need to do is build a following on social media, or stay up to date with an artist by simply subscribing to their feed.
As proof, just consider that digital art makes up 18% Gen Z's art collection (compared to 8% of Millenial’s). Consider the $69 million 2021 Beeple sale. Roughly 64% of the bidders for the “Everydays - The First 5000 Days” NFT were younger than 40.
The interest 18 to 24-year-olds have in crypto and NFTs can be summed up in two ways. First, they were born into this landscape, they understand it better, and they access it with ease. Second, their willingness to take risks is much greater, making them more resilient to fluctuations in the market. Of course, it will be interesting to see how many NFTs and cryptos they actually get in their Christmas stocking this year.