The crypto sector is at a critical juncture in its development. For years, it remained beneath the radar of the general public, battling disdainful regulators and skeptics to reach the top. With cryptocurrencies experiencing an increased adoption and a slew of large firms scrambling to enter the market, crypto is more prominent than ever.
The market appears to be on the verge of breaking into the mainstream in ways it hasn't before, and a variety of factors, including the worldwide generational divide, may impede or hasten this transition.
Generational Gaps and the Crypto Industry
Certain items, services, and businesses are frequently linked with specific generations in the realm of money and consumption. There is a widespread claim that millennials are ‘killing certain industries, such as casual dining and weddings, by not engaging in them and pushing them towards economic collapse.'
This is crucial because millennials are expected to be the generation with the most purchasing power, and if they refuse to provide it to specific markets as their parents and grandparents did, those businesses would perish. On the other side, if they financially support a sector like e-commerce, it is likely to thrive.
Fortunately for the cryptocurrency industry, millennials favor it. After inheriting a global economy in worse condition than their parents, millennials are lured towards digital assets such as cryptocurrency and have invested in it in record numbers. This is due in part to the fact that millennials and Gen Z are highly tech-savvy, but it is also because they feel locked out of the mainstream financial world as a result of inflation, rising mortgage prices, and other factors.
As a result, the ability to invest from your phone with little constraints is highly tempting to a millennial or a Gen Z. However, while millennials presently have the most purchasing power and Gen Z is close behind, cryptocurrencies cannot completely advance without the support of governments. And, for the time being, neither group has the authority to enact laws.
The average age of a congressman in the United States is 54 years old, making them neither millennials nor Gen Z, but rather Gen X and Boomers, who are renowned for being conservative and technologically inept. This might explain, in part, the regulatory opposition that cryptocurrencies have seen over the years from politicians who appear to be contemptuous of the industry or lack sufficient knowledge of it.
Its Effects Moving Forward
With the generational divides in the crypto industry firmly defined, it is critical to assess how they may benefit or damage the industry in the future. In terms of commercial cryptocurrency use, millennials and Gen Zs, in particular, will ensure the industry's survival. Millennials have the most purchasing power and fully endorse cryptocurrencies.
Then comes Gen Z, who grew up with the internet and the digital world. As a result, we may anticipate them to embrace cryptocurrency from the start and even inherit digital assets from their millennial parents. While some of Gen X's intransigence and lack of technological knowledge delayed the growth of crypto, many of them appear to be coming around and warming up the sector on their own.
In terms of political power, legislators appear to recognize that the growth of digital assets is unavoidable, and greater effort is being made to accommodate the industry. When the current generation of Gen X lawmakers departs, they will be succeeded by a generation that is not only more technologically savvy but also more critical of the system that came before them. For the time being, bitcoin is in good generational hands and will be transferred to even better hands over time.