Gen Alpha Buys 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, who are the first to be born in a world of digital technology, is starting to lose their shine. 

In fact, their baseline will be very different in terms of how value is measured, where it’s stored, and even what it looks like. Bitcoin will not only be an option for investment, but it’ll be the default currency of this generation.

Birth into the digital age

Unlike previous generations, Gen Alpha Bitcoin is not a new invention or a revolution. The world they inherit will be one where Bitcoin is ingrained in all digital platforms, in many financial applications, and in the classroom. For them, this won’t seem risky or revolutionary. The experience will be normal.

Their experience of money will begin with digital. Cash will become rare as the majority of payments will take place cashlessly. 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, in that context will no longer seem exotic. It’ll become a normal part of life. Gen Alpha will perceive gold as an exotic yellow stone of historic value. 

It is now easier to buy Bitcoin than ever before

Gold is a hard metal. 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 Started from a position of deep 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 is designed to fit into this worldview. Open-source, auditable, and decentralized. It allows for verification, not trust. It is a mantra in a world that is based on distrust. “don’t trust, verify,” Gen Alpha tends to gravitate towards systems that do not require intermediaries.

Bitcoin is a culturally indigenous currency

Bitcoin has become a part of everyday life. pop culture. This cultural familiarity for Gen Alpha will continue to grow. Gen Alpha will be exposed to Bitcoin via finance apps, influencers and creators as well as games, school programs, and other educational resources.

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 will feel more relevant to the culture because of its constant exposure via memes, mainstream platforms, and brands.

The Bitcoin code is programable

It is heavy and physical. In vaults, it is kept. It is hard to transport, and even harder to use. Bitcoin is exactly the 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.

Generations that will no longer need to convince

Each generation has its own way of reshaping the financial system. Bitcoin became popular among Millennials. Gen Z made it normal. Gen Alpha doesn’t need to be convinced.

Bitcoin won’t be seen by them 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. 

The gold rush was a moment. Bitcoin has just begun. Gen Alpha is going to grow up using Bitcoin in their wallets and not in vaults.

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

The article does not provide legal advice or investment recommendations and it is intended only for informational purposes. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.