How Gen Z is addicted to cryptocurrencies and NFT
Written byTimes Magazine
The lure of quick profits always attracts young people to invest in risky assets. Likewise, Gen Z appeals to the variability – and decentralized nature of – digital assets such as cryptocurrencies and NFTs. But they are unregulated, meaning there is little investor protection.
"All my friends were talking about [cryptocurrencies], so one day I decided why not jump in and see if I could make some money," said Paxton Sea Tau, 20.
Generation Z—also known as Zoomers—is born between the mid-90s and early 2000s. They grew up online, played games, and hung out with friends virtually, so the transition was natural.
Cryptocurrencies are digital currencies, while irreplaceable tokens (NFTs) are a way to have a genuine digital image promoted as a digital response to collectibles. A year ago, Paxton bought $1,000 worth of bitcoin ($743; £739) — one of the most popular cryptocurrencies — which instantly brought him a 10% profit. So he decided to double his portfolio. But then the price dropped.
"There's always a saying, 'buy low, sell high,' but I've done the opposite." "I let my feelings take over me," she says. He had lost a thousand dollars in accumulation to all the money he had invested before he could withdraw his money and recalibrate his strategy. The losses were much more significant for another older merchant, Kelvin Kong. After hitting six figures in 2017, he failed more than half a million dollars.
He ended up with only a few hundred dollars left in his bank account. "I think I'm almost depressed. I'm having suicidal thoughts." The explosion of cryptocurrency and NFT trading among young people worries him. "Many of them will lose money in the end," he added. But the cautionary tales of those who have lost large sums of money don't deter young traders.
For many, the 1st taste of digital assets is through "Play to Win Games," which rewards players with NFT and cryptocurrencies that can then be used in-game or exchanged for cash.
"Every kid wants to make money playing games," said a 23-year-old Malaysian trader named YellowPanther. "This is the dream of my generation."
A month after he started trading NFT last August, he decided to quit his job as a marketing manager to change NFT full time.