The modern generation is both, tech-savvy, and financial-savvy. It receives valuable education from all the short-form videos circulating on social media websites.
Amongst the more popular social networks, is Tik Tok. To illustrate, by July 2021, the network displayed around three billion downloads. In fact, every month displays beyond a billion fans, who remain highly active. You can, however, visit the (official app) to get started with bitcoin trading with the necessary tools, investment strategies, and advice from experienced traders.
DeFi Needs to Become More Well-Known
Whenever there is a crypto market crash, everyone’s eyes turn toward Bitcoin. Its upswings and downswings are highlighted by both, social media. It is a wonderful website for investors in, and traders of, cryptocurrencies.
Bitcoin (BTC) arrived at an all-time-high price of $69,000, in 2021. However, it has witnessed a plunge of over 70%, since then. Recovery has not been as good as it should have been.
Now, marketplace volatility is never going to go away. However, if DeFi (decentralized finance) is to become popular, and have something like a healthy future, more investors and traders must embrace it. Fortunately, Generation Z is bold and keen to experiment.
Forward-Looking Generation Z
TikTok is responsible for making Generation Z financially literate. In fact, a new term has also come into being – FinTok. This portmanteau points towards any kind of content related to finance.
In 2021, videos with the hashtag, #Crypto, garnered 1.9 billion views. Then, #NFT received an enhancement by 93,000%, as interest in NFTs strengthened. Around 1.4 billion views were awarded to videos sporting the hashtag, #StockTok.
Of course, the money management videos are not limited merely to the digital currency marketplace. In 2021, there were videos that covered every kind of financial topic, possible. They included debt, taxation, savings, budgeting, etc. They arrived under the umbrella of the hashtag, #PersonalFinance. This hashtag received over 4.4 billion views.
The primary users of TikTok, are Generation Z. The youth will consume anything if it has a background of a viral dance and a catchy pop tune.
What Observations of Gen Z, Reveal
As per the global investment returns yearbook of Credit Suisse, Generation Z will focus less on traditional investments, than earlier generations did. Therefore, they are bound to earn a third less, from stock markets and investments in bonds.
Invest in You is a survey conducted by CNBC, young adults are becoming leaders in the arena of adopting digital assets. For instance, 15% of investments in cryptocurrencies, were handled by people aged between 18 and 34. In contrast, only 11% of investments were taken up by individuals aged between 35 and 64.
However, the younger group believes in short-term investments and not long-term ones. Around 21% of 18-34-year-olds consider them as a strategy lasting for 12 months only.
The Bank of America came up with a research report in December 2021. It was titled, OK Zoomer. According to the survey, Generation Z’s financial, and professional, futures would be troubled by the ongoing pandemic.
True, many members of Gen Z do not have plenty of cash to invest in cryptocurrencies. However, they could well do so in the future. They would be the finance-savvy and investment-savvy ones. Such driven mindsets would prove highly beneficial for the progress of DeFi.
Steps to be Taken for DeFi Progress
To begin with, DeFi firms need to study diverse demographics. Then, they should target them in specific ways. This way, the health, and the future, of the virtual currencies market, would be preserved.
Similarly, TikTok should take advantage of its fame, to democratize the process of investing. In other words, this social media platform should prove accessible to all.
Whatever videos are created, they should be customized in alignment with the mindsets of diverse audiences. The videos should send out concise and clear messages. There should be transparency, too. The targeted audiences should also know about the risks that occur in investing in digital assets. This way, Generation Z will be well-prepared, when it goes ahead with its investments.
It is imperative that audiences, today, and in the future, develop trust in crypto companies. They must speak the language of the younger generation. Above all, this trust-building exercise should carry on for a few years. People should regain confidence in the appearance of bullish markets. They should refuse to lose courage when bearish trends begin.