President Trump signs the Genius Act, the first major cryptocurrency law in the US
President Donald Trump signed the Genius Act, creating the United States’ first virtual currency law regulating stablecoins.
Gen Z wants cryptocurrencies for Christmas.
But how cool would it be for Gen X parents to have a digital currency under their virtual tree?
Visa announced in a new study released on December 2nd that cryptocurrencies will become mainstream as holiday gifts in 2025.
Specifically, 45% of Gen Z said they would be excited to receive cryptocurrency as a gift.
Not everyone shares the enthusiasm. Only 28% of all consumers said they would welcome putting cryptocurrencies in their socks. The survey was conducted by Morning Consult in October and surveyed 1,000 adults.
Bitcoin’s roller coaster is now plummeting
The price of Bitcoin, the largest digital currency, has risen dramatically in recent years, fueled in part by the emergence of crypto ETFs and President Donald Trump’s enthusiastic support.
However, the price of Bitcoin has fallen sharply recently. According to an Investopedia analysis, this decline comes amid broader market volatility, a scenario that drives investors away from riskier assets such as cryptocurrencies.
With Bitcoin trading at a discount, the 2025 holiday season could be the perfect time to buy Bitcoin for your Gen Z kids. or not. According to experts, it really depends on how you feel about cryptocurrencies.
And it may also depend on your age.
Crypto: Is it a game for young people?
Cryptocurrency is largely a generational phenomenon. It’s also a man thing. A mid-2025 Gallup poll found the following breakdown of crypto holders by age and gender:
- Men aged 18-49: 25% own cryptocurrencies
- Men over 50: 12%
- Women aged 18-49: 8%
- Women over 50: 9%
Among millennials, “everyone knows someone who became a crypto millionaire,” Craig J. Ferrantino, president of Craig James Financial Services in Melville, New York, told USA TODAY in 2024.
Generation Z, born between 1997 and 2012, are crypto natives. The oldest generation, Gen Z, reached adulthood after the initial release of Bitcoin in 2009.
Sam Taub, NerdWallet’s lead investment writer, is a young millennial who has friends who have “made a lot of money in crypto.” He thinks he knows why Gen Z likes this currency.
The COVID-19 inflation crisis is a defining economic event for Gen Z, Taub said. He said that in the face of nearly 10% annual inflation, many Gen Zers are concerned that “the 10% annual rate of the S&P 500 index is not necessarily reduced by the inflation-adjusted rate.” “People feel they need bigger, bolder profitability to sustain their living expenses.” Cryptocurrency could provide that profitability.
In contrast, Gen Z parents may not even be able to convincingly define cryptocurrencies.
“I think our generation is a little more skeptical about cryptocurrencies,” said Jason Moser, a senior investment analyst at The Motley Fool who has children in college.
“The difficulty that a lot of people have with cryptocurrencies, and I think it’s the same one, is that you just don’t see it,” Moser said. “I don’t know what it is. It’s just an algorithm. What happens when the electricity goes out?”
First of all, what is cryptocurrency?
Cryptocurrency is digital money. Since it is not issued by a government or bank, there is no central authority. Instead, it uses a technology called blockchain that resides on a decentralized network and tracks transactions and assets.
For years, retail investors who wanted to buy or sell digital currencies generally needed access to a cryptocurrency exchange, a potential drawback for beginners. Things changed in 2024, when federal regulators passed that retail investors in the United States could buy and sell Bitcoin ETFs in the same way they trade stocks.
Moser is a cryptocurrency skeptic. He is committed to the idea that Bitcoin has no intrinsic value, only what someone is willing to pay for it.
“I can see why the stock price is tied to the value of the company,” he says. “With cryptocurrencies, it comes down to finding someone who is willing to pay more for it than you paid for it.”
Others are more optimistic about cryptocurrencies.
“I think everyone needs some exposure to cryptocurrencies in their modern portfolios today,” said Caleb Silver, editor-in-chief of Investopedia. “And by ‘a little’ I mean less than 5% of that portfolio.”
Bitcoin’s value rose from virtually nothing to an all-time high of over $126,000 in October.
“If you just look at Bitcoin’s returns over the past 10 years, it’s the best-performing ‘asset’ of all time, the aviation market,” Silver said. “Will that always be the case? It’s hard to know, but looking at the price history, there’s no doubt it’s a good investment.”
Don’t like cryptocurrencies? Try stocks.
If you like the idea of introducing investing to young adults but don’t feel comfortable with cryptocurrencies, stocks are an obvious alternative.
Parents can easily buy individual stocks, exchange-traded funds, and mutual fund shares for their children. If the recipient is a minor, you can set up a custodian account in their name.
“Open a custodial account with your child and choose stocks and exchange-traded funds together,” Silver says. “Think of it like a family. Let’s explore and learn together why investing is important.”
Moser suggests that the giftee consider purchasing shares of the S&P 500 Index ETF, a fund that invests in the entire S&P 500 Index.
“I think this is a great first step for people learning about investing and how to become investors,” he says. “It makes the next step in personal stock ownership a little easier.”
