For previous generations, the path to economic opportunity and prosperity, often referred to as the American Dream, appeared within reach by following traditional rules. However, new research from Coinbase reveals that younger generations believe this promise has eroded. Only 9% of Gen Z (ages 18-25) and 19% of Millennials (26-40) feel that the American Dream is attainable for all in the current financial landscape. Burdened by education debts, high housing costs, and escalating inflation, the younger generation is increasingly disillusioned with an antiquated financial system built on legacy institutions that no longer meet their needs.
While various narratives have portrayed younger generations as disengaging from the status quo through trends like “quiet quitting” and “lazy girl summer,” Coinbase’s Q3 State of Crypto Report offers a different perspective. It reveals that the youth aren’t simply disengaging; they’re actively constructing something new. These generations are breaking away from conventional career paths, embracing flexible models of work, ownership, and finance that bypass outdated intermediaries. They’re seizing opportunities that align with their values, whether it’s within the United States or globally. As of 2028, they will constitute the majority of America’s voters and consumers, which places the onus on politicians and institutions to adapt to their evolving needs.
The dissatisfaction with the nation’s financial system is widespread, as only 9% of all Americans express contentment with it, and merely 22% consider it superior to systems in other countries. However, this disillusionment is particularly pronounced among the younger demographic:
Just 7% believe the financial system effectively serves people like them.
Over half (52%) seldom or occasionally utilize it.
Less than one in five (17%) believe that the U.S. system surpasses international alternatives, compared to one in four people aged 40 and older (26%).
Coinbase’s new research delves into how young Americans experience and engage with the financial system, highlighting its shortcomings, and demonstrating how these generations are leveraging technology to assert their economic agency. As younger individuals grapple with increasing financial pressure and disenchantment with the established system, they are simultaneously gaining empowerment through technology and asserting their influence as consumers and voters to initiate change.
Age: More than 100 million Millennials and Gen Z adults grew up with the internet, mobile phones, and apps. Millennials, who faced challenges in their early careers during the 2008 financial crisis, played a significant role in the rise of marketplace apps, leading to the sharing economy. Gen Z, who experienced the COVID-19 pandemic and adapted to online life, learned to assign value to digital assets. These generations seek financial systems that adapt to their needs and pace, allowing them to manage and transfer funds as swiftly as the internet itself. Only 5% of Gen Z and Millennials describe the system as “speedy,” with just 11% deeming it “innovative.” Instead, they often characterize it as “political” and “expensive.” Among all age groups, 29% of Millennials find the system “outdated,” while Gen Z predominantly labels it as “confusing” (28%) and “exclusionary” (29%).
Agency: Frustrated by the existing system, young people are taking charge of their financial futures. They express a greater desire for multiple income sources (45%) and are more likely to engage in side gigs (32%) compared to older generations. Nearly half of Millennials (48%) express a willingness to work relentlessly to achieve their goals. A significant portion of Gen Z (77%) prefers charting their unique life paths rather than adhering to traditional routes, such as pursuing a college degree or homeownership. They are actively exploring economic opportunities that don’t rely on an outdated financial system upheld by inflexible institutions. By doing so, they lay the groundwork not just for a revamped system but also for a renewed American Dream, empowered by technologies like cryptocurrency.
Nearly 38% believe that crypto and blockchain can create economic opportunities beyond the reach of traditional finance, compared to 26% of older generations.
Over 31% of young people own crypto, compared to 12% of older individuals.
Young people show more interest in crypto than their older counterparts because it represents a global currency that can be accessed and sent worldwide (16% versus 10%).
Approximately 38% see crypto as the future of finance, compared to less than 30% of older individuals.
Moreover, they’re not just passively holding crypto; they’re actively engaging with it by studying it in school, viewing it as a significant source of employment, and preparing to advocate for crypto-friendly candidates in the 2024 elections. Millennials and Gen Z account for roughly 40% of today’s voting-age population and are set to become the majority of voting-age Americans by 2028:
51% indicate their intention to support crypto-friendly candidates in 2024.
Around 39% believe that politicians and policymakers should endorse technologies like cryptocurrency and blockchain to support future generations, in contrast to 28% of older Americans.
The influence of these generations on the nation’s consumers and voters will continue to grow, leading to the increased adoption of cryptocurrency in politics and society.
This report represents Coinbase’s second State of Crypto Report, following the Q2 2023 report on corporate adoption, which revealed that more than half of Fortune 100 companies are developing blockchain initiatives to maintain competitiveness. This series aims to educate the public on how crypto can contribute to revamping the financial system for the benefit of both consumers and corporations. At a time when there is a broad consensus that the current system falls short of being a global benchmark for innovation and fairness, this report outlines how crypto can foster greater equality of opportunity and establish a new, more inclusive, self-directed, and technologically up-to-date American Dream.
