Wyatt Johnson still remembers refreshing his Coinbase app during the hype of the crypto frenzy in 2021. He and his friends were convinced they were witnessing history, so Mr. Johnson decided to invest about $5,000.
But instead of making money, his portfolio in Solana, a cryptocurrency, lost half its value within months.
Mr. Johnson, 22, hasn’t invested in crypto since, though he still follows it and keeps up with the latest news. And though he wouldn’t invest his own money right now because of the recent downturn in the crypto market, he also wouldn’t say no if he were given digital currency as a Christmas gift.
“Money is being democratized in a way we haven’t seen before in history,” said Mr. Johnson, who lives in Hustisford, Wis. “Things are changing. I think it’s important for our generation to keep up with that.”
Depending on whom you ask, a crypto gift is either the equivalent of a scratch-off ticket or a gift card with endless possibility. Even with market volatility, some younger Americans, particularly Gen Z-ers, appear open to unwrapping Bitcoin or Ethereum gifts this holiday season.
That doesn’t mean crypto is at the top of many wish lists. With retailers, payment companies and crypto platforms pitching digital assets as holiday-friendly gifts, a bigger question emerges: Do Gen Z-ers actually want crypto for the holidays, particularly in an uncertain economy?
Early signs suggest a split within Gen Z. Those in their 20s, especially ones who’ve dabbled in investing, tend to be cautiously open. They will accept crypto, but most would rather receive savings contributions, rent help or more stable and traditional assets like stocks. Mr. Johnson said he would prefer a gift tied to real estate or funds toward his artificial intelligence start-up over crypto.
Teens and Gen Z-ers who are new to investing seem more enthusiastic, most likely because they’re less entrenched in the market’s swings, according to financial experts. Around 45 percent of Gen Z would be excited to get cryptocurrency as a holiday gift, according to a recent Visa report.
“Gen Z doesn’t fear volatility the way older generations often do; what they fear is stagnation,” said Will Reeves, chief executive of Fold, a bitcoin financial services company. Homeownership and other traditional pathways to building wealth can feel out of reach for younger generations, he added, while Bitcoin can feel more accessible.
Part of the appeal is cultural. Gen Z grew up watching the rise of Bitcoin and Ethereum on social media, said Rick Maeda, a research associate at Presto Research, an algorithmic trading firm. Even now, after a series of dips, some young investors view crypto volatility as normal, even expected, he added.
And for many young adults, receiving a small amount of crypto is a way into investing. Research from the Financial Industry Regulatory Authority and CFA Institute shows that crypto is often the first asset younger investors ever hold. Close to one-fifth of Gen Z investors hold only crypto assets and nonfungible tokens, or both, according to the study, compared with Gen X, which invests primarily in mutual funds.
But their receptiveness arrives at a complicated moment for the industry.
A year ago, Bitcoin surged past $100,000. This milestone and the election of a pro-crypto president had aficionados predicting that the 16-year-old cryptocurrency would jump to $250,000 by the end of the year.
Those predictions haven’t materialized.
After climbing as high as $126,000 in October, Bitcoin slid to around $81,000 in late November, a nearly 35 percent drop that erased all its progress this year. (Bitcoin has since rebounded, reaching almost $95,000 on Dec. 9). Other leading cryptocurrencies have also fallen, with Ether down nearly 40 percent since August.
The volatility is not just crypto-specific but reflects broader economic conditions, such as shifting interest rate expectations and tariffs. In a climate where Gen Z-ers are having trouble finding jobs, moving back in with parents to save money or delaying life milestones, they want investments that are stable. Investments that won’t turn against them in the next few years, let alone the next few months.
But some Gen Z-ers are seeing this year’s downturn as more of an opportunity than a warning sign, with many pouring their money into crypto while the prices are low, said Stephen Kates, a financial analyst at Bankrate, a consumer financial services company. But financial experts warn that crypto and lesser-known digital coins are risky and should make up only a small portion of a broader investment portfolio.
For Russell Kai, a finance student living in Vancouver, Canada, crypto always felt like the chaotic part of the financial world — too many dramatic swings, not enough guardrails. He began investing two years ago as a college student when a friend nudged him into buying his first stock. Since then, he has kept the mind-set to stick with investments that are stable or issued by the government, rather than new or trendy digital assets.
Mr. Kai, 22, said he wouldn’t reject a crypto gift this year, but added that he’d probably sell it quickly and funnel the cash back into the stocks he watches daily.
Clay Lute, 24, would also be open to receiving crypto as a gift, he said, but it isn’t something he would specifically ask for. Mr. Lute, a fashion merchant living in Queens, believes Bitcoin will recover from its current dip, eventually gaining both value and practical usage. But he doesn’t think there will be a widespread crypto boom in which hundreds of different coins remain.
“If I could curate my holiday wish list, an investment in my Roth IRA feels like the smarter investment for my future over taking a chance on crypto,” Mr. Lute said.
Kailyn Rhone is a Times business reporter and the 2025 David Carr fellow.
The post Crypto for Christmas? Gen Z-ers Are Cautiously Open to the Idea. appeared first on New York Times.
