Cryptocurrency as a Christmas Gift? Gen Z Is Reconsidering

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 packaged 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 imagined.

This article, through the real experiences of multiple young people in their twenties, presents a divided and restrained mentality: 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 related to long-term life goals. For them, cryptocurrency symbolizes both an era of change and a reminder of coexisting risks and uncertainties.

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 believed they were witnessing history, so Johnson decided to invest about $5000.

However, the result was not making money but rather watching the cryptocurrency he held—Solana—lose nearly half of its value in a few months.

22-year-old Wyatt Johnson experienced a loss as the price of his held 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

The 22-year-old Johnson has not invested in cryptocurrency since then, but he still follows the field, staying up to date 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 gifted him digital currency for Christmas.

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

From a different perspective, cryptocurrency gifts are either akin to a scratch-off lottery ticket or a gift card with unlimited potential. Despite significant market volatility, some American young people, especially from Gen Z, still seem willing to unwrap gifts like Bitcoin or Ethereum this holiday season.

This does not mean that cryptocurrency tops many people's wish lists. As retailers, payment companies, and crypto platforms wrap digital assets into "holiday-friendly" gifts, a larger question emerges: Does Gen Z really want to receive cryptocurrency as a gift during the holiday season amid economic uncertainty?

Preliminary signs indicate a divide within Gen Z. Those in their early twenties, especially with investment experience, often hold a cautiously optimistic attitude — they may be open to cryptocurrency, but most would prefer support in savings, rent subsidies, or stocks and other stable, traditional assets. Johnson, for example, stated that rather than cryptocurrency, he would prefer gifts related to real estate or funds to support someone else's AI startup.

On the other hand, teenagers and young Gen Z members who are just starting to explore investing seem more enthusiastic. Financial experts believe this is likely because they have not yet experienced the full market ups and downs. 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 is not afraid of volatility like older generations; what they are truly afraid of 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, while Bitcoin gives a sense of easier accessibility.

22-year-old Russell Kai began exploring investing two years ago after being introduced to the stock market by a friend. He is open to cryptocurrency but prefers holding stocks instead. Image Source: 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, said Gen Z is the generation that witnessed Bitcoin and Ethereum's rise on social media. Even after experiencing a series of pullbacks, some young investors still see cryptocurrency's high volatility as normal, even inevitable.

For many young people, receiving a small amount of cryptocurrency is often the starting point into the world of investing. Research from the Financial Industry Regulatory Authority (FINRA) and the CFA Institute shows that cryptocurrency is often the first asset young investors hold in their lifetime. The study 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 attitude is emerging at a rather complex time for the industry.

A year ago, the price of Bitcoin briefly 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 surging 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 nearly $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 the broader economic environment, such as changing interest rate expectations and the impact of tariff policies. Against the backdrop of Gen Z facing widespread job difficulties, moving back in with parents to save money, or delaying key life milestones, they prefer to choose stable investments—those that will not "flip-flop" in the coming years, let alone see 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 price dip to invest in cryptocurrency. However, 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 part of the financial world—too much volatility and too little security. Two years ago, while still in university, he bought his first stock at a friend's urging, marking the beginning of his investment journey. Since then, he has adhered to one principle: choosing stable assets issued by governments rather than trendy, popular digital products.

At 22, Kai stated that if he were to receive cryptocurrency as a gift this year, he would not refuse it but would most likely sell it quickly and reinvest the cash into stocks he monitors daily.

The 24-year-old Clay Lute also expressed that he is open to receiving cryptocurrency gifts, but it is not a request he would proactively make. 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 utility. However, he does not believe in an era of "altcoin abundance," where hundreds of cryptocurrencies coexist in the long term.

"If I were to plan my own holiday wish list, putting money into my Roth IRA would obviously be more advantageous for my long-term future than betting on cryptocurrency," Lute said.

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