Gen Alpha will buy Bitcoin over gold

Opinion by: Darius Moukhtarzadeh, Research Strategist at 21Shares

Gold has long been considered the ultimate store of value — shiny, scarce and time-tested. 

Gen Alpha is the first true digital generation, but that glow has already started to fade. 

They’ll instead grow up knowing a completely different standard of value, its movement, and the place it resides. Bitcoin will not only be an option for investment, but it’ll be the default currency of this generation.

Digitally born in a world of digital technology

Unlike previous generations, Gen Alpha Bitcoin is not a new invention or a revolution. Bitcoin will already be a part of their world, as it is present in many financial apps and classrooms, embedded into digital platforms, and discussed. It won’t be risky to them. The experience will be normal.

Their experience of money will begin with digital. As most transactions will not be made in cash, physical cash will become scarce. The only way they’ll be able to learn about scarcity is through in-app economy and gaming tokens, not by looking at gold coins. Bitcoin will not seem so exotic in this context; it’ll be a part of daily life. Gen Alpha, on the other hand, will see gold as a precious yellow stone that has a historic value. 

The Bitcoin currency is more accessible than gold

Gold is heavy. To have full control, you need to purchase it from a reputable dealer and keep it in a physical location. While Bitcoin is only a couple of taps away, it’s not as easy to access. Gen Alpha may be introduced to Bitcoin through child-friendly apps for fintech and education tools. 

Apps that offer loyalty points, allowances or games with crypto support will make it easy to access. Bitcoin’s technical and inaccessible barriers are quickly disappearing.

The trust will not be assumed, but earned

The older generation gradually loses faith in the institutions. Gen Alpha The project began with a deep sense of skepticism. The generation is growing up amid economic insecurity, institutional mistrust and algorithmic data. They are growing up in an era of economic uncertainty, institutional distrust and algorithmic information. “trust” Transparency will be required to earn the money that is given by governments and banks.

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Bitcoin was designed with this in mind. Decentralized, open source and auditable. It allows for verification, not trust. In a society where “trust” is the motto, it’s important to verify. “don’t trust, verify,” Gen Alpha is attracted to systems which don’t involve intermediaries.

Bitcoins will become culturally native

Bitcoin is not just an investment; it has now become part of the mainstream. pop culture. Gen Alpha’s cultural familiarity is only going to increase. Gen Alpha will be exposed to Bitcoin via finance apps, creators and influencers as well as games, school programs, and other media.

Digital assets, just as social media is second nature for Gen Z and Gen Alpha, will also be a part of their online identities. Bitcoin’s constant exposure to mainstream platforms and memes will help it feel more relevant in the cultural context than gold.

The Bitcoin code is programable

The gold is inert, physical and heavy. Gold is stored in vaults. The currency is difficult to transport and use. Bitcoin does the exact opposite. Bitcoin is programmable and borderless. It can be divided into smaller amounts.

Bitcoin’s flexibility and responsiveness will become a key feature for Gen Alpha as they grow up. This is the kind of world that they will build.

The generation who will not need to be convinced

The financial system is shaped by each generation. Bitcoin became popular among Millennials. Gen Z has normalized Bitcoin. Gen Alpha will not have to convince Gen Z.

Bitcoin will not be seen as a replacement for the current system. It will be seen as a part of their system. It’s not because they are ideological, but rather because it is familiar, easy to use and culturally relevant. 

Bitcoin is just getting started. Bitcoin has just begun. Gen Alpha’s wallet, and not a vault will be their first home.

Opinion by: Darius Moukhtarzadeh, Research Strategist at 21Shares.

This article was written for general information and not to provide investment or legal advice. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.