Gen Z, blockchain, and the metaverse: A perfect marriage or a fling?
As digital natives who have grown up with no memory of a time before the Internet, Gen Z is incredibly informed of the metaverse and blockchain. And there is huge potential in them.
Illustration: Fstop/Getty Images
Editor’s note: This is an op-ed by Craig Borthwick. Borthwick is a partner at LIGHTBLUE, a tech strategic consultant agency.
Craig Borthwick, partner at LIGHTBLUE.
Blockchain and the metaverse have been on our radar for quite some time, with varying sentiments and beliefs about their promise. However, it was the turn of the decade that really saw their prominence soar. At about the same time, the powerhouse demographic Gen Z was becoming teenagers. Coincidence? I think not.
A lot is said about this skeptical, ethically astute and, at times, unattainable segment, representing over $360 billion in disposable income. Yet when it comes to blockchain and metaverse, as digital natives having grown up with no memory of a time before the Internet, they are incredibly informed, and if anyone needs reassurance of promise, look no further than them.
Let’s take a deeper dive into this relationship and what lies ahead.
It’s in the game
Regarding the metaverse, some believe it was born out of the Covid pandemic. But while many were perfecting banana bread, Gen Z continued to engage with their communities through gaming as their favorite form of entertainment, as they had for several years prior. A recent Deloitte study shows the extent of this, with a global average of 11.6 hours per week, just ahead of their millennial counterparts.
Furthermore, Mckinsey highlighted how gaming is leading the way, with 67 percent of Roblox’s 50 million users under 16, signaling a new generation of metaverse natives and leading Wall Street analysts to grow increasingly bullish.
While no true metaverse exists, the fundamentals of the vision are to create a world open to everyone enabling co-creation and self-expression. A GWI report conveyed Gen Z’s distancing from millennials’ focus on social media follower count to identity and community, citing that they take to the digital space to stand out, control perception, and express themselves in new ways. We also see that customization priorities focus on physical appearance and identity.
Metaverse environments are also pivotal in driving Gen Z purchases. A Venture Beat study found that among the 82 percent of those attending live in-game events purchased because of the event, 65 percent purchased digitally and 34 percent physically, reinforcing the blurring of lines between real and digital.
Finally, with 52 percent of Gen Z gamers reporting they would like to make money in the metaverse and one-third desiring to build a career there, it has the foundations of a profitable future.
The future is on the chain.
Blockchain is probably best known for facilitating cryptocurrency, and Gen Z is no stranger to digital assets, with the demographic representing almost 20 percent of total ownership. This is, however, far outweighed by millennials, who account for around 74 percent of the market.
That said, 46 percent of Gen Z said they “wished” they could invest in cryptocurrencies as part of their financial planning, so realistically, the gap to millennials is more likely down to disposable income. Despite this, a YPULSE study found that Gen Z is the first demographic more likely to purchase digital assets than traditional stocks.
However, blockchain has huge disruptive potential beyond crypto and is the enabling platform of the future. Brands use technology to engage Gen Z on social causes and the environment, which they deeply care about. Take Timberland, for example, with their Cotton Project tracking the cotton journey authentically on the chain.
In the not-so-distant future, blockchain will seamlessly integrate into the careers of Gen Z, whether it is validating their achievements for an employer or supporting prospects, as it will play an integral role in industries like healthcare, travel, and real estate.
In 2023, we already see the culmination of Web3 and blockchain coming together to redefine the future and give a tangible benefit. For Gen Z, as natives and at the heart of this, it’s not a question of how but when. Forget the fling. This is a tsunami.
