Introduction
With the holiday season approaching, many millennials and Gen Z are looking for unique and modern gifting options. And this season one of the new trends is crypto-related gifts.
In 2024, bitcoin hit a trillion-dollar valuation for the first time, and with the increasing interest in things such as Ethereum and NFT art, cryptocurrency has been creating a lot of waves lately.
A recent survey by a private company revealed that nearly half of Americans plan to gift cryptocurrency this holiday season, around 94% of cryptocurrency buyers are in the age range of 18-40, with Gen Z and Millennials making up the majority.
In today’s exclusive FinTecBuzz article, we will explore why crypto is becoming a popular gift choice and which types of digital assets are most favored.
Table of Contents
1. The Rising Awareness of Crypto Gifting
2. Why Should You Choose Crypto Gifting in 2024?
2.1. Understand the Basics of Cryptocurrency
2.2. Opt for a User-Friendly Wallet
2.3. Consider Tax Implications
2.4. Research about NFTs
3. The Future of Crypto Gifting for Gen Z and Millennials
In the End
1. The Rising Awareness of Crypto Gifting
Giving cryptocurrency as a gift has become an assertive trend this holiday season. These cryptocurrency gifts have several advantages over conventional presents. However, the perception of receiving crypto gifts remains mixed; while some believe it is a trendy and valuable offering, others express a preference for more traditional gifts.
When compared to physical gifts that may lose value over time, gifting cryptocurrencies encourages the recipient to invest in their financial future and adapt to the evolving digital economy.
In 2024, cryptocurrencies were sent instantly worldwide, aiding in avoiding the hassles of traditional money transfer and international shipping. According to Bitperfect, 40.2% of millennials are planning to give crypto gifts, closely followed by Gen Z at 39.6%. Surprisingly, 20.1% of Gen X also showed interest in this modern gifting trend.
Therefore, the growing acceptance of cryptocurrencies implies their possible longevity in the world of gift-giving, especially among younger generations who are quickly adopting digital finance.
2. Why Should You Choose Crypto Gifting in 2024?
As cryptocurrencies gain traction as any trendy gift this holiday season, here are a few tips and hacks that you must consider that will help you navigate this new avenue of gift-giving. Here’s how to make the most of your crypto-gifting experience.
2.1. Understand the Basics of Cryptocurrency
Before giving cryptocurrency as a gift, it is essential to understand how it works. You will find different types of cryptocurrencies, such as Ethereum (ETH), Tether (USDT), Binance Coin (BNB), Dogecoin (DOGE), and Bitcoin, operate on a decentralized network allowing secured transactions without the need for intermediaries. It is advisable to familiarize yourself with a key concept such as blockchains and wallets that can help you explain the gift to your loved ones.
2.2. Opt for a User-Friendly Wallet
You can also gift the recipient a user-friendly cryptocurrency wallet. In the market, you will find cryptocurrency wallets such as Coinbase Wallet, ZenGo, Exodus, and Trust Wallet that will provide you with step-by-step guides to help beginners get started. This will ensure that your gift is not only appreciated but is also easy to manage.
2.3. Consider Tax Implications
When gifting cryptocurrency, it is important to be aware of the potential tax implications. In many countries, the Internal Revenue Service (IRS) mandates that capital gains must be informed when they are transferred to crypto. Therefore, to avoid any tax-related issues, you should consult a tax professional or utilize tools available online that will help you understand the rules.
2.4. Research about NFTs
In recent years we were introduced to non-fungible tokens (NFTs), which are a newer form of crypto asset that has gained popularity. Therefore you can consider gifting an NFT, which can provide a unique and personal touch, especially if it represents digital art, music, or collectibles that resonate with the recipient.
3. The Future of Crypto Gifting for Gen Z and Millennials
Generation Z (Gen Z) and Millennials have ushered in a new era of payments with cryptocurrency, and according to global surveys, it was highlighted that Millennials are the most likely generation to invest in cryptocurrency in the coming year. Therefore, their active involvement in the decentralized economy heralds a transformative future for financial systems globally.
In a recent survey by researchers at an American university, 15% of millennials stated that they own an NFT, and around 64% of millennials have invested in cryptocurrency investments.
In a similar survey, it was witnessed that 23% of Generation Z are currently owning cryptocurrencies. Therefore, in the coming years, the number of investors in cryptocurrencies might grow, making it no longer just a trend but a permanent feature of the financial landscape.
In the End
Gifting cryptocurrency is an innovative way to show appreciation, share knowledge, and encourage financial empowerment, making it an ideal present and a more meaningful gift. You can further explore unique options such as direct transfers, NFTs, and crypto savings accounts.
As digital currencies are reshaping the future of finances, embracing crypto gifting can help you stay current and also strengthen your connections with loved ones.
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