Crypto is replacing gift vouchers on teenagers’ Christmas wish lists, according The Holiday 2018 report released by investment bank and asset management company Piper Jaffray. They also want V-Bucks, the virtual currency used in the popular video game Fortnite.
This is a significant shift, because it indicates that teenagers prefer crypto to fiat money, and indicates a generational move to adoption of digital assets. It could also mean that these kids see crypto as a medium of exchange and not just a speculative investment. If teenagers now prefer to use cryptocurrencies and other digital assets instead of cash and gift cards this means that the volume of crypto assets in everyday circulation can only increase. Now parents, grandparents and other family members will no longer be able to stick a few dollars in a card; they will need to get a digital wallet.
The popularity of the V-Bucks payment system also shows that teens are moving away from fiat. The video game that launched on Apple’s iOS platform in March 2018 is, as CCN says, “effectively introducing a new generation of users to a new paradigm where they can carry out purchases and trades across a vast digital ecosystem using a medium of exchange that is only loosely tied to fiat.” The current rate of exchange is $9.99 to 1,000 V-Bucks, and while users can use the token to pay for in-game upgrades and outfits for their Fortnite characters, all refunds are made in V-bucks instead of fiat. Therefore, they are encouraged to stay within the V-Bucks ecosystem. The Piper Jaffray report indicates that teens are enthusiastic about this payment system, which isn’t great news for businesses using fiat.
This is a huge contrast compared with their parents’ and grandparents’ negative attitude to crypto. Although they have the money to invest in digital assets, only about 2.5% of them say they will do so. Perhaps their offspring will eventually change their minds.