Yesterday, Coinbase, the popular US crypto exchange, published a report titled “To update the dream, they’re updating the system” as part of their series called “The State of Crypto.” This report explores the American Dream and the current socio-economic system.
This is Coinbase’s second State of Crypto report, following their Q2 2023 report that focused on corporate adoption. The purpose of these reports is to educate the public about the role cryptocurrencies can play in transforming the financial system for the benefit of consumers and businesses.
The latest report concentrates on the third quarter of 2023 and acknowledges that there is a consensus in the US that the current system is not innovative, fair, or a model for the world. Instead, it highlights how cryptocurrencies can support greater equality of opportunity and create a more inclusive, self-directed, and technologically advanced system.
The American Dream refers to the belief among Americans that hard work, courage, and determination can lead to economic prosperity and an improved standard of living. However, this dream appears to be fading, leading to debates about its true nature. Many argue that it has become synonymous with consumerism and material well-being rather than genuine happiness.
Coinbase’s report focuses on younger Americans and their perspective on the American Dream. It reveals that only 15% of Generation Z and Millennials believe it is achievable. This suggests widespread disillusionment among younger generations. Despite this, they remain resilient and adaptable, with 45% desiring additional sources of income and nearly one in three currently holding a second job.
Interestingly, younger generations express optimism about cryptocurrencies, with 38% of Gen Z and Millennials believing that cryptocurrencies and blockchain can provide economic opportunities that traditional finance cannot offer. This sentiment decreases among older age groups to 26%. Moreover, 31% of Gen Z and Millennials already own cryptocurrencies compared to 12% of Boomers and Gen Xers.
It is important to note that Gen Z and Millennials represent around 40% of the voting age population in the US and will become the majority by 2028. In light of this, 51% of them state that they are likely to vote for candidates who support cryptocurrencies in next year’s elections.
The data collected by Coinbase indicates that younger generations view cryptocurrencies as a means to gain more control over their finances, unlike the traditional system that no longer rewards hard work and resilience. While it is not surprising that younger generations seek to build a new system, the flaws of the old system have contributed to their disillusionment.
Cryptocurrencies have the potential to bring about tangible changes to the financial system, even if economic and social perspectives differ. According to Coinbase’s report, younger generations are actively involved in building something new. They are embracing unconventional paths and adopting flexible models of work, ownership, and finance that do not rely on traditional intermediaries.
These new models are spreading across the country, around the world, and at the speed of the internet. It appears that a different future is within reach; however, whether it will be an improvement remains uncertain.
Hot Take: The Future of Finance Lies in Cryptocurrencies
The latest report from Coinbase reveals a growing disillusionment among younger Americans with the traditional financial system and their belief in achieving the American Dream. Instead, they are turning to cryptocurrencies as a means to take control of their finances and create a more inclusive and technologically advanced system. With Gen Z and Millennials representing a significant portion of the voting population, it is noteworthy that more than half of them express willingness to vote for crypto-friendly candidates in upcoming elections. This highlights the potential impact of cryptocurrencies on future policies and regulations. As these younger generations continue to adopt new models of work, ownership, and finance, it becomes clear that cryptocurrencies have the power to reshape our financial landscape.
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