Young people are attracted to crypto-currencies, such as Bitcoin and Solana. These are digital assets based on blockchain technology, a decentralized and secure ledger that records transactions without the need for intermediaries such as banks or governments. Created to operate on peer-to-peer computer networks, they offer an alternative to traditional financial systems by guaranteeing transparency, cryptographic security and decentralization, eliminating centralized control.
How is Bitcoin different from other cryptocurrencies?
Bitcoin, launched in 2009 by a person or group under the pseudonym Satoshi Nakamoto, is the first and best-known cryptocurrency. It laid the foundations for blockchain technology and remains a benchmark. It differs from other cryptocurrencies (such as Ethereum, Litecoin, Ripple, etc.) in several key respects. Here are the main differences, based on data from the web sources provided and general knowledge:
1. Origins and main objective
- Bitcoin: Conceived as a decentralized digital currency to be an alternative to the traditional monetary system, with a focus on peer-to-peer payments without intermediaries. Its main purpose is to serve as a “digital currency” and store of value, often compared to gold (“digital gold”).
- Other cryptocurrencies (altcoins): Many altcoins, such as Ethereum, have been created to extend or enhance Bitcoin’s functionality. Ethereum, for example, introduces smart contracts, enabling decentralized applications (dapps) and decentralized finance (DeFi), while Litecoin targets faster transactions, and Ripple (XRP) focuses on fast, low-cost international payments for financial institutions.
2. Technology and functionalities
- Bitcoin: Uses a consensus algorithm called Proof of Work (PoW) to secure the network and validate transactions. It has a fixed limit of 21 million Bitcoins, reinforcing its role as a store of value, but is limited in terms of scalability (around 7 transactions per second) and does not support native smart contracts.
- Other cryptocurrencies: Many altcoins adopt different technologies. Ethereum, for example, moved toProof of Stake (PoS) with Ethereum 2.0 to improve energy efficiency and scalability, and supports smart contracts, enabling a wide range of applications.
Litecoin uses a Scrypt algorithm (faster than Bitcoin’s SHA-256) and has a limit of 84 million coins. Ripple, with XRP, uses a unique consensus mechanism(Ripple Protocol Consensus Algorithm, RPCA) for near-instantaneous transactions between institutions.
What is DeFi?
Decentralized finance, or DeFi, is a subset of crypto-currencies that uses the blockchain to create peer-to-peer financial systems, doing away with central institutions such as banks or brokers. Thanks to protocols such as Uniswap or Aave, DeFi enables activities such as lending, borrowing, or exchanging digital assets without intermediaries, often via smartphone-accessible apps.
Young people’s motivations
1. Generational appeal
Young people are embracing crypto-currencies for generational reasons, reflecting their immersion in the digital age. Born into a connected world, generations Y and Z are attracted to what their parents haven’t mastered, such as crypto-currencies and DeFi, which they perceive as a symbol of modernity and independence from traditional financial institutions often perceived as rigid or remote from their realities. This generational fascination stems from a desire to break away from inherited financial systems, which they associate with exclusion or inaccessible complexity.
2. Technological fascination
The technological aspect is another key driver. Blockchain, with its transparency, decentralization and security, appeals to young technophiles. DeFi, accessible via smartphones and apps like MetaMask or Trust Wallet, reinforces this appeal, as shown by a Finder study(Cryptocurrency Adoption Report, 2023), where 49% of Gen Z in the US invest via mobile platforms. These intuitive digital tools offer global accessibility, challenging traditional financial structures with their simplicity and innovation.
3. The lure of profit
In 2025, these technologies are attracting younger generations, particularly Gen Y and Z, fascinated by their promise of freedom and independence from traditional financial systems. With a 111% rise in Bitcoin millionaires in 2024(Cointelegraph) and a $38 billion enrichment for crypto-billionaires after Bitcoin’s surge(Forbes France), the lure of gain is becoming a powerful driver, but the risks for novices, such as young people, underline the urgency of appropriate education.
This article explores the motivations of young people, the challenges linked to this deregulation and the crucial role of schools and universities in equipping them, countering financial “sharks”, influencing policies, and envisaging a stable future in the face of risks and potential inequalities. Faced with high living costs, modest entry-level salaries and barriers to traditional investments, young people are dreaming of getting rich quick via crypto-currencies, seeing these examples as a gateway to prosperity.
4. Ease of trading
The ease of trading on platforms such as Coinbase, Binance, or Kraken, with fast transactions, accessible 24/7, and without bank intermediaries, reinforces this appeal. These platforms, often intuitive and available on smartphones, offer an alternative to financial systems perceived as complex and slow, enabling young people to participate in the global market without financial or geographical barriers, but also without the traditional safeguards, which increase their exposure to risk.
Adoption challenges and risks
1. Market volatility
Crypto-currencies present significant risks, not least their volatility. The Bitcoin price, for example, lost around 60% of its value in 2022, exposing novice investors, often attracted by the lure of gain, to significant losses. This instability can quickly turn hopes of enrichment into financial losses for young, inexperienced investors.
The crash of 2022: a key lesson
The crypto-currency crash of 2022, when crypto-billionaires like Changpeng Zhao of Binance lost up to $82 billion(Statista), illustrates the extreme risks of volatility. This massive loss offers a crucial lesson for young people: the lure of gain can quickly turn into massive losses if investors fail to understand market dynamics, underlining the need for appropriate education to avoid similar mistakes.
2. Deregulation and scams
Total deregulation via DeFi, while attractive, raises security issues, such as exchange hacks (e.g. Mt. Gox in 2014, according to the IMF) and the absence of legal protections, leaving young people vulnerable to scams and financial “sharks” exploiting their inexperience. Technological accessibility, while an advantage, can expose them to sophisticated scams on unregulated platforms.
3. Distrust of traditional systems
The generational appeal of crypto-currencies can also amplify the dangers, as young people, in a context of growing mistrust of traditional financial systems, may underestimate the risks. For example, rising gold prices ($2,500 per ounce by 2025, according to the World Bank) signal increased caution, but young people, fascinated by DeFi, may shy away from a thorough analysis of financial risks.
The role of educational institutions
1. A stronger economic education
Faced with these challenges, schools and universities need to equip students to deal with crypto-currencies and financial risks. Reinforced economic education, including courses on volatility, blockchain, DeFi, the risks of deregulation, greed, and ease of trading, is essential, as highlighted in a study on financial literacy(Lusardi & Mitchell, Financial Literacy, 2014).
2. Practical simulations and case studies
This education should include practical simulations (Bitcoin bull and bear analysis, DeFi risk management), case studies on financial markets, common scams, and crashes like 2022, as well as collaborative projects to influence policy, such as reforms promoting protective regulation for novice investors.
3. Partnerships with experts
Educational institutions can partner with finance experts and blockchain developers to train students to identify “sharks” (scams, market manipulation, volatility), assess opportunities and risks, and navigate trading platforms without falling into impulsive decisions. For example, workshops could analyze white papers from DeFi projects or simulate trading sessions to understand volatility, drawing inspiration from the sometimes very significant ups and downs.
4. Reducing inequalities and influencing policy
This approach prepares students to understand the dynamics of crypto-currencies, avoid financial pitfalls, and contribute to a stable future, balancing their attraction to innovation and decentralization with prudent management.
It also helps reduce potential inequalities by equipping young people with the tools to participate equitably in financial opportunities, while influencing public policy for a resilient system in the face of the challenges of deregulation and digital risks, such as unpredictable crypto market fluctuations or sophisticated scams.
Summary
Crypto-currencies and DeFi offer young people an opportunity for autonomy, technological innovation and quick wins, but their adoption carries risks of volatility and deregulation. By strengthening economic education, schools and universities can guide young people towards responsible adoption, balancing their generational, technological and financial appeal with prudent management, while influencing policies for a positive future in the face of financial risks and potential inequalities.