Native digital generation comes to crypto via NFTs

[ad_1]

Generation Z, the youngest generation, is called “digital natives”. Unsurprisingly, this generation, born with the internet, is among the most interested in cryptocurrencies.

In a recent study, GamblersPick found that this generation is increasingly engaging in the crypto market through non-fungible tokens (NFTs).

While Millennials still invest the most in crypto, Gen Z is right behind. Older generations prefer more traditional avenues of investment like hedge funds and stocks.

Part of this can be explained by the fact that most of Gen Z are still minors. Therefore, they are unable to invest in any capacity, while the older generations are all earning adults. However, among 18-24 year olds surveyed, interest in cryptocurrencies is significant.

Born in digitization

The millennial generation is a generation of digital immigrants. Indeed, they were introduced to the Internet, computers and a digitized world as it grew.

In comparison, Generation Z was born into an almost entirely digital world. For example, when the first iPhone came out in 2007, the older Gen Z were only 10 years old. When the Bitcoin white paper was released in 2008, there were 11 of them.

As a result, they are ready for a world in which cryptocurrencies and NFTs are becoming more and more attractive.

“We wanted to see what the investment trends were for these newly emerging adults versus those who are older. We found that 28% of Gen Z were investing consistently, ”says Joe Mercurio, research project manager.

“It’s really interesting to see the different trends that are influencing Gen Z versus other generations, like the influence of social media. Gen Z has ranked first in investing in memes and cryptocurrency investments compared to other generations, ”he said.

An introduction through NFTs

The oldest of Gen Z have been over 18 for about six years. However, most are still in the early stages of income generation. This coincided with the rise of DTVs.

The story continues

Major NFT auctions grabbed the headlines in 2021, from Jack Dorsey’s NFT tweet to Beeple’s record-breaking art sale.

The opportunities presented by NFTs are enormous. Sports franchises sell trailers, YouTube celebrities sell their videos, and artists sell their work in the digital marketplace.

“We wanted to learn more about generational investing habits because we understand that for new investors, this is a way to potentially increase their net worth. With recent events with GME and the crypto markets, we’ve heard reports that people may be “gambling” with their money, especially new investments, ”says Mercurio.

The market is also reacting to the increased interest. Recently, Step Finance announced the addition of Augmented Reality (AR) NFT to its Solana (SOL) dashboard. Thus, Solana users will now be able to see their NFT assets included in their portfolio on the Step Finance dashboard.

NFT, memes rather than actions

Research has found that while this generation still participates in the stock market, it is not their only investment. Moreover, their reasons for doing so were very different from those that came before them.

He revealed that older generations reported investing for long-term stability. Meanwhile, Millennials and Gen Z are more inclined to do so for social causes, including undermining traditional financial institutions.

For the record, this has already had an impact, as seen with the GameStop hype. Relying on a Reddit community, Robinhood investors raised the price of GameStop to hurt larger investors who had sold the stock short.

This popular social media influence was also found among those interviewed.

“Our results show that Gen Z seem to be the most influenced by social media, especially Reddit where 40% said they were influenced. Based on what our results show, we believe this online presence is a trend that will continue throughout the future of investing not just for Gen Z but for all generations, ”says Mercurio.

The disinterest in traditional bullish investing sentiments and distrust of the establishment is echoed by digital strategy consultant and NYC-based startup CMO Michelle Fang.

“Gen Z is less motivated by material acquisition, equating the stacking of physical objects with greed. We were old enough to remember the 2008 financial crisis and the impact of the stock markets on our parents’ way of life, ”she wrote in a Medium article.

Fang argues that Gen Z grew up in spaces they find solace in, including games and memes, both of which are much more familiar to them than a traditional stock market. This then pushes them towards NFTs, which are closely related to games and memes.

Context matters

It is easy to group together a specific age group and see its actions as representative of the whole. However, this is not really the case.

While the results of age-based studies provide some insight, variables are missing from the bigger picture. These include the geographic and socio-economic differences between people of the same age group.

In the case of NFTs and cryptocurrencies, a basic requirement would be access to the necessary technology. Thus, Generation Z in Europe and the United States can easily be involved in these investment flows. However, it is not clear if their counterparts in other parts of the world are.

[ad_2]