Americans are facing pressure from rising living costs, but they are not backing away from crypto.
The latest holiday spending survey from Visa Inc. found that the demand for digital assets as gifts is increasing, even as inflation continues to limit disposable income and makes consumers more cautious. However, this contrast reflects a deeper change in households' adaptability when money seems tight.
Inflation is decreasing, but individuals still feel budget constraints.
Inflation rates have slowed from their peak after the COVID-19 era, but prices remain high in key categories such as housing, food, insurance, and utilities.
Overall wage levels remain aligned with inflation rates, helping to prevent a severe decline in purchasing power; however, profits remain very thin.
After covering necessary expenses, most households have fewer investment options or leftover money for non-urgent spending than before 2022.
This context does not completely halt spending but shifts behavior, with consumers beginning to shop earlier than usual, comparing prices more, and using technology to stretch each USD further.
Financial confidence remains fragile, but economic participation continues, reflecting caution in individual spending habits—and in what is chosen to purchase.
A Visa survey in December revealed that 28% of Americans feel excited about receiving crypto as a holiday or Christmas gift, with this figure rising to 45% among Gen Z.
The allure of crypto is not about luxury but reflects the popularity of assets perceived as flexible, digitally focused, and potentially valuable in the long term.
Meanwhile, 47% of buyers in the United States report using AI tools to help choose holiday gifts, focusing on idea generation and price comparison, indicating a consumer mindset that emphasizes efficiency over overspending.
A new generation of young consumers is leading this change, with Gen Z demonstrating higher rates of adopting crypto payments, including digital wallets, biometric identity verification, and cross-border shopping than any other age group.
For them, crypto fits seamlessly with a broader digital financial identity.
Data shows that giving crypto as a gift does not replace necessities but rather substitutes discretionary items as consumers continue to shop cautiously.
How does this reflect the U.S. economy?
The decline in inflation and ongoing budget pressures reflect a cautious but stable economy.
Americans are not withdrawing but adapting. Spending continues, focusing on tools and assets that can enhance efficiency, provide alternatives, or create added value in the future.
As crypto becomes more accepted as a gift, even with reduced disposable income, this indicates a cultural acceptance rather than mere speculation.
This also helps explain why digital assets continue to attract interest even during economic slowdowns.
For the market, the message is clear: inflation may cool off, but confidence has not fully recovered.
During times of low confidence, technology and alternative assets play roles that traditional consumption does not address.
Americans may feel strained, but they are still cautiously betting on the future.