Christmas is just a few days away. Traditionally it is a special time full of meetings with family and friends. A Christmas fit is also inextricably associated with gifts for loved ones. It is not uncommon for this gift to take the form of cash or another financial gift (such as a voucher or gift card) – especially when it comes to young family members.
This year, cash under the Christmas tree may be particularly desirable in this group. According to an QYTO study, 68 percent of Generation Z representatives in our country are concerned about their current financial situation. These concerns stem from a number of issues: high levels of inflation, difficulties for those starting their careers, high housing prices or a prolonged pandemic. But who said that financial gifts have to be physical? Who said you can’t try to win bitcoin at an ビットコイン対応カジノ in Japan? Times are changing. The gift for millennials and Gen-Z can be… digital assets.
Here are 4 reasons why you should consider digital assets as a gift:- A Christmas fit
- Your gift can gain value
Unlike a jumper, socks or even cash, digital assets can potentially gain value over time. Cryptocurrencies or NFT token is an investment with the potential to increase in price. An example? Ethereum, the second largest cryptocurrency by market capitalisation has increased its value more than fivefold over the past year. Of course, profit potential also means volatility risk and this should not be forgotten. Therefore, when gifting a digital asset, it is worth encouraging its new owner to broaden their knowledge of the market and share the basic advice for novice investors – don’t invest more than you can afford to lose.
- Financial education
The development of the digital asset market contributes to the dissemination of basic knowledge about personal finance, economics or investing. An example of the application of the trend to democratise the financial world is the DeFi (decentralised finance) market. It uses blockchain technology to carry out all transactions without the supervision of international financial institutions and organisations. The concept of decentralised finance assumes that it is possible to transfer any financial service to the blockchain network. With DeFi, it is possible, for example, to conclude a loan agreement without the involvement of a bank or other intermediary. Consequently, the decentralised finance market can significantly contribute to building financial knowledge and bringing concepts such as money supply, lending, diversification or inflation closer.
- The exciting world of blockchain
Digital assets are the key to a modern and exciting world. The idea behind Bitcoin was to create decentralised money, independent of central banks and governments. Consequently, all decisions regarding the functioning of the cryptocurrency depend on the online community behind it. However, digital assets are more than just cryptocurrencies. Today they also include the increasingly popular NFT, or non – fungible tokens. They are already commonly used as certificates of authenticity of e.g. digital works of art, and their popularity is still growing. Other, more traditional instruments – such as shares or precious metals, including gold – are also being digitised.
- The first step towards metaverse- A Christmas fit
There has been much talk in recent weeks about a vision of a virtual world – the metaverse. It is not yet possible to predict what this digital world will look like. However, there is no doubt that, just like in the ‘real world’, it will need rules for economic mechanisms and private property. According to initial forecasts, these will be based on blockchain technology and digital assets. Blockchain is still a young and developing technology, whose potential we are still discovering. However, it seems certain that it will have a significant impact on our lives and future.
To sum up: young people are showing increasing concern for their financial future. Their interest in investing is growing. The development of the digital asset market has played a significant role in this. In 2021, cryptocurrencies have grown rapidly in popularity and entered the mainstream of the financial world. The value of the entire sector has exceeded $3 trillion in recent weeks. NFT has been named word of the year by Collins Publishers. From technology, to music, to the world of cinema and art, the whole world has been gripped by a veritable cryptomania.
How do you gift digital assets?- A Christmas fit
If the above arguments have convinced you, you are probably wondering how to give someone digital assets as a gift. The first step would be to purchase, for example, Bitcoin cryptocurrency. The easiest and safest way to do this is through licensed investment platforms such as Bitpanda. Then we need to transfer the assets we own to the person we are gifting. If they already have a digital wallet set up, all they need to do is send our gift to the private address they provided. However, if your loved ones don’t have a digital wallet or you want to surprise them, you can do it with a so-called “paper wallet”. Just like with a voucher, we write down the special character key assigned to the newly created digital wallet and give it to the future owner as a gift.