With the election of Donald Trump and recent booming across investment portfolios, I wanted to research, learn and discuss how the stock market and other forms of trading currency are shaping Gen-Z and university college students. Overall, I will be discussing developments in the New York Stock Exchange, as well as Bitcoin and Phantom digital currencies.
As my mind was wandering during my Supply Chain and Operations class this past week, I veered to my right to see my friend Bhanu Prodduturi putting a quick investment into a Phantom digital app. With great curiosity on what was in front of me, I analyzed the data trends that his graph displayed, showing a 400 percent increase within 20 minutes. It dawned upon me that there is the possibility for superlative opportunities within the digital currency landscape, but why aren’t more people capitalizing?
Cryptocurrencies are digital or virtual currencies that use cryptography to secure transactions and operate independently of banks or governments. (In this instance, cryptography is the science of securing information by transforming it into a format that is unreadable to authorized users). Since its start in 2009, the cryptocurrency Bitcoin has gained increased popularity, with thousands of new coins emerging, most notably Ethereum, Solana, and Cardano. The main attraction point for someone to invest in cryptocurrency is the decentralized control that it offers. Cryptocurrencies allow people to manage their finances without relying on centralized institutions, investing without worry of banking or governmental systems.
Recently, companies like Tesla, PayPal, and Square have integrated cryptocurrencies into their business models; accepting them as payment or holding them as assets. With this information, it causes me to wonder, “how could cryptocurrency shift long-term financial management with companies and governments as a whole?” Overall, this analysis is specified towards Gen-Z. Being present in the digital world provides its benefits and pitfalls, but gen-z investors have found independence and great opportunity with the digital investment world. Overall, NFT’s (Non-Fungible Tokens) have allowed gen-z investors to trade, own, and display unique digital assets, making crypto an appealing piece to any young investor.
Recently, a new digital currency, regarded as phantom currency, refers to ghost money – which are digital assets that are used for accounting or reporting purposes but don’t have any underlying tangible value in the same way as cryptocurrencies. The differences between cryptocurrency and phantom currency can be described as follows: phantom has no real-world value, and is typically used for simulations or modeling. Cryptocurrency holds real-world value in a decentralized network. They are based on blockchain technology, allowing them to be bought, sold, and traded.
The growth of cryptocurrency and digital “phantom” assets among the Gen Z generation has been significant, driven by increased comfort with technology and openness to non-traditional financial instruments. Nearly half of gen z investors are engaging with cryptocurrencies, making them more likely to use digital wallets and invest in NFTs. This surge represents both adaptability to digital finance and an appetite for high-risk, high-reward assets. In the coming decade, we may see governmental stricter regulations for cryptocurrency, making these investment assets more stable while lowering the potential for rapid gains. All in all, I believe that current college students and the gen Z generation as a whole should look into the grand opportunities that cryptocurrencies and the stock market have to offer.
