- Generation Z and Millennials are changing the concept of the “American Dream” by forging their own path to economic prosperity.
- They question the conventional financial system and look for flexible and technological alternatives.
- Cryptocurrencies and blockchain technology emerge as engines of change.
In the sense in which previous generations observe with nostalgia how the old concept of the “American Dream” is being diluted, Generation Z and Millennials appear as those responsible for a change in the economy driven by technology. Thanks to the recent Coinbase study, we will analyze how these generations are reshaping the foundations of the traditional financial system, currently obsolete, and focusing on cryptocurrencies and blockchain technology.
The traditional financial system is obsolete
The American dream, once attainable for many, is now perceived as unattainable, with only 9% of Generation Z and 19% of Millennials believing they can achieve it.
Adding to this challenge is the reality of student debt and ever-increasing housing costs.
Furthermore, these generations question the relevance of the conventional financial system, based on inherited institutions. According to the Coinbase report, only 7% of young people consider that the financial system benefits them, and more than 50% use it occasionally or never. Furthermore, less than 20% believe that the US financial system is superior to those of other countries in the world.
However, despite their discontent, young people are not resigned to the lack of economic opportunities. Instead of following traditional paths, they are adopting flexible work, ownership and finance models that do not rely on legacy intermediaries.
These new models adapt to them, taking advantage of the speed of the Internet, and spread throughout the country and the world.
This generation waits for no one and will become the majority of US voters and consumers in 2028, requiring politicians and institutions to adapt to their needs and desires.
Generalized discontent and search for alternatives
Only 9% of Americans are happy with the country’s financial system, and only 22% believe it is superior to that of other countries.
However, young people are particularly disillusioned. Only 5% of Generation Z and Millennials consider the system to be agile, and only 11% see it as innovative. Instead, they perceive it as political and expensive, and describe it as outdated, confusing and exclusionary.
Cryptocurrencies and blockchain technology
More than 30% of young people believe that cryptocurrencies and blockchain technology can expand economic opportunities in a way that conventional finance cannot.
Generation Z and Millennials are more likely to own cryptocurrencies compared to older generations. They see cryptocurrencies as the future of finance and consider them a global currency that is accessible and can be sent anywhere in the world.
Additionally, they are studying cryptocurrencies in school, seeing them as an important source of employment and preparing to vote in 2024 for candidates who support these technologies.
Political change in the power of the Youth
Together, Generation Z and Millennials currently make up about 40% of the voting-age population, and will become the majority by 2028.
51% of them plan to support pro-cryptocurrency candidates in 2024. Additionally, 39% believe that politicians and policymakers should support technologies such as cryptocurrencies and blockchain to help future generations.