As per a report ‘The Holiday 2018’ published by Piper Jaffray (an investment bank and asset management firm) for the first time American teenagers have shown a preference for cryptocurrency as a gift for Christmas. The report states that teenagers now prefer getting cryptocurrency and V-bucks (virtual currency in the video game Fortnite) as compared to gift cards, cash, or even money for gas. The revelation highlights the importance of digital assets in the lives of the upcoming generation.
The preference of teenagers for digital assets over fiat money and gift cards is critical as it forecasts an impending financial transformation. As cryptocurrencies become an accepted medium of value exchange, the adoption of digital assets by the younger generation will transform the way the world’s economy works. If teenager’s prefer digital currencies over fiat money, then the volume of crypto assets in circulation will only grow further.
The online video game Fortnite’s V-bucks payment system has invaded the space which was once dominated by fiat money. The popular game has grossed over USD 300 million ever since its launch on Apple’s iOS platform in March. Users can make purchases and trade in the vast ecosystem of Fortnite using digital currency. At present, the exchange rate of fiat money to V-bucks stands at USD 9.99 to 1,000 V-bucks. Users can use the ecosystem’s currency for myriad purposes such as game updates, as well as to buy outfits for their characters. Refunds are carried out in V-bucks instead of fiat. This further encourages the gamers to engage in the game’s ecosystem.
Even though American teenagers seem to be making a beeline for cryptocurrencies, however it is interesting to note that the ‘baby boomers’ (the generation born before 1964) are not huge fans of the crypto world. As per a survey conducted by peer to peer payments tech firm, Circle, less than 2.5 percent of baby boomers are interested in investing in digital assets.