Cryptocurrency as Christmas Gift? Investment Choices from a Generation Z Perspective

Author: Kailyn Rhone, The New York Times

Translation: Peggy, BlockBeats

Editor’s note: Today, with Bitcoin and Ethereum already symbols of pop culture, cryptocurrencies are no longer just speculative tools but are also packaged as “gifts for young people.” However, under the realities of economic pressures and market pullbacks, Generation Z’s attitude toward digital assets is far more complex than imagined.

This article presents the genuine experiences of several young people in their twenties, revealing a divided yet restrained mindset: they are not opposed to cryptocurrencies and are even willing to “accept” them as gifts during holidays, but when it comes to personal asset allocation, they prefer stable, predictable investments related to long-term life goals. For them, cryptocurrencies symbolize both a shift of the times and a reminder of the risks and uncertainties involved.

Below is the original text:

Wyatt Johnson still remembers the scene during the 2021 crypto frenzy when he kept refreshing the Coinbase app. He and his friends believed they were witnessing history, so Johnson decided to invest about $5,000.

But the result was not profit, rather his holdings in the cryptocurrency Solana lost nearly half their value within a few months.

22-year-old Wyatt Johnson experienced a loss when the value of his Solana holdings was cut in half. Nevertheless, he is still willing to receive cryptocurrencies as gifts during Christmas. Image source: Jenn Ackerman / The New York Times

Now 22, Johnson has not invested in cryptocurrencies since then, but he still follows the field and keeps up with the latest developments. Although he is not investing his money now due to recent market downturns, he wouldn’t refuse digital currency as a Christmas gift.

“Money is becoming democratized in ways never seen 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.”

Different perspectives lead to different views on crypto gifts: some see them as scratch-off lottery tickets, others as gift cards with unlimited potential. Even amid market volatility, some American young people, especially Generation Z, seem willing to open gifts like Bitcoin or Ethereum during the holiday season.

This does not mean cryptocurrencies are at the top of many people’s wish lists. As retailers, payment companies, and crypto platforms package digital assets as “holiday-friendly” gifts, a bigger question emerges: in the context of uncertain economic prospects, does Generation Z really want to receive cryptocurrencies during the holidays?

Initial signs show a divide within Generation Z. Those in their twenties, especially those with investment experience, tend to be cautiously open—they can accept cryptocurrencies but mostly prefer gifts related to savings, rent subsidies, or more stable, traditional assets like stocks. Johnson said he would prefer to receive real estate-related gifts or funds to support his AI startup projects over cryptocurrencies.

Younger teenagers and early members of Generation Z who are just starting to explore investing are more enthusiastic. Financial experts believe this is likely because they have not yet experienced the market’s extreme fluctuations in depth. According to a recent Visa report, about 45% of Generation Z would feel excited to receive cryptocurrencies as gifts during the holidays.

“Generation 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-building paths like homeownership seem out of reach for young people, and Bitcoin offers a more accessible alternative.

22-year-old Russell Kai was introduced to the stock market by friends two years ago and began exploring investments. He is open to cryptocurrencies but prefers holding stocks. Image source: Alana Paterson / The New York Times

Part of the appeal of digital assets comes from cultural factors. Rick Maeda, research assistant at algorithmic trading firm Presto Research, said that Generation Z is the first to witness the rise of Bitcoin and Ethereum on social media. Even after a series of corrections, some young investors see high volatility in cryptocurrencies as normal, even inevitable.

For many young people, receiving a small amount of cryptocurrency is often their entry point into investing. Research from FINRA and the CFA Institute shows that cryptocurrencies are often the first assets held by young investors. The study found that nearly one-fifth of Generation Z investors hold only crypto assets and NFTs, or both; in contrast, Generation X investors mainly focus on traditional products like mutual funds.

But this openness comes at a time when the industry faces a complex environment.

A year ago, Bitcoin’s price briefly surpassed $100,000. Amid 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 materialize.

After climbing to about $126,000 in October, Bitcoin retreated to around $81,000 in late November, a nearly 35% decline, erasing almost all of this year’s gains. (Bitcoin later rebounded, approaching $95,000 on December 9.) Other major cryptocurrencies also declined, with Ethereum dropping nearly 40% since August.

This volatility is not just a crypto-specific issue but reflects broader economic conditions, such as changing interest rate expectations and tariff policies. In a context where Generation Z faces widespread employment difficulties, moves back in with parents to save money, or delays major life milestones, they prefer stable investments—assets unlikely to “flip” in the coming years, let alone in the next few months.

However, some Generation Z members see this year’s decline as an opportunity rather than a warning. Stephen Kates, a financial analyst at Bankrate, said many young people are taking advantage of falling prices to invest in cryptocurrencies. Still, financial experts warn that cryptocurrencies and lesser-known digital tokens carry high risks and should only constitute a small part of a diversified portfolio.

For Russell Kai, who lives in Vancouver, Canada, and majors in finance, cryptocurrencies have always been the most chaotic corner of the financial world—too much volatility, too few safety rails. Two years ago, while still in college, he bought his first stock on a friend’s advice and started investing. Since then, he has adhered to a principle: choose stable assets or government-issued ones rather than trendy, popular digital products.

Kai, 22, said that if he received cryptocurrencies as a gift this year, he probably wouldn’t refuse but would likely sell them quickly and reinvest the cash into stocks he follows daily.

24-year-old Clay Lute also expressed openness to receiving crypto gifts but said it’s not something he would proactively request. Living in Queens, New York, and working in the fashion industry, Lute believes Bitcoin will recover from its current lows and ultimately increase in value and practical use; however, he does not believe in a prosperous era where hundreds of cryptocurrencies flourish long-term.

“If I could make my own holiday wishlist, investing that money into my Roth IRA would obviously be more beneficial for my long-term future than betting on cryptocurrencies,” Lute said.