Consumer trust toward cryptocurrency is slowly increasing over the past two years, with Gen Z and Millennials leading the charge. What will this mean for purchase behaviors in the future? Savvy brands are watching closely for indicators – and here’s why you should be too!
Indexing higher than older groups, Gen Z and Millennials are leading the exploding online conversations – and corresponding positive sentiment toward – cryptocurrency, as we can see in the infographic below spanning November 2020 through November 2021:
And conversations around this new, global currency demonstrate (by size and sentiment indicated in our Word Cloud below) a wide array of potential entry points for brands seeking to better understand how consumers feel about the concept.
For example, excitement around the crypto space is palpable online, and consumers are eagerly sharing the many ways they can earn free crypto, places to exchange it, grow it and dream of becoming rich by investing in it. Investment requires participation in the market, of course, so they’re seeking places to do business with that accept this new currency as a form of payment. And all the better if these places offer the ability to redeem or earn rewards of any kind for consumers paying with crypto.
The adoption in society has been picking up steam for a few years now, with consumer favorites like Starbucks offering the ability to pay with it – along with an expanded loyalty program that may not earn digital dollars . . . yet, but anything is possible as new partnerships are explored. They’re headed in the right direct and that forward motion is apparent to a consumer base that’s certainly paying attention to this sort of thing.
Which brings us to our next point: not all of the attention cryptocurrencuy is receiving is positive. There are negative conversations to be aware of as well.
Understanding the Entire Crypto Conversation
Something that social analytics is fantastic for is revealing the entire conversation around a topic, beyond the surface insights – and it’s also great for shattering brand or market assumptions. And this is crucial here, as brands working hard on the ‘environmentally aware’ front will want to consider their entry into the crypto market carefully.
First, let’s look at who is driving the cryptocurrency conversation, as it’s not Elon Musk – though he has brought celebrity-level awareness by way of his interest in the meme-based cryptocurrency, Dogecoin. The real crypto conversation movers and shakers though are regular people. Many wouldn’t even hit a brand’s radar as a micro-influencer, as they possess fewer than 5,000 followers – most hover around the 100-1,000 follower range, in fact.
And they are interacting with likeminded netizens on variety of topics – both criticizing cryptocurrency, and excited about its potential.
When we explore the behaviors of these people through the lens of themes, we can see opportunities and challenges. We’ve filtered the crypto conversation to reveal behaviors related to sustainability, the global economy, the environment, and investments. And the key challenge we see here revolves around the negative behavior of “ban.”
But dependent upon the lens (theme) applied, this word means different things.
The opportunities here revolve around building better mining platforms and blockchain technology enhancements, or ways to improve the process overall to make it safer and, inevitably, more environmentally sound. This latter part will need to be addressed. Because although the ‘conservation conversation’ is dwarfed by the excitement this digital currency is generating, that is likely to change, as the conversation is experiencing a groundswell of support that will likely grow over time. Let’s dig into that ‘ban’ conversation – both as it relates to sustainability and the global economy.
Monitoring the Crypto Sustainability Conversation
The ‘sustainability’ and ‘environment’ folks are tackling the same issue – excessive and unnecessary power outputs used by technology to validate cryptocurrency, with the former claiming it’s not sustainable and the latter focused on its environmental impact.
This is the opposite of environmentalism, which we know runs contrary to everything Gen Z stands for.
Solutions may arise in the near future and entirely shift this conversation. It will important to know about that as it’s happening. To accomplish this, brands will want to create conversational benchmarks and data visualizations in their consumer-monitoring dashboards for quick reference to ensure they understand if/when this shift – from excitement to worry or however it looks – starts to take place, and how to best stay ahead of it.
Monitoring the Global Economy Crypto Conversation
And then we see the ‘global economy’ and ‘investment’ folks are more concerned with governments banning cryptocurrency as an attempt at regulation. Rather, this is governments’ collective response around being unable to sort out how to regulate it.
These governments are both seeking to protect consumers from their own inexperience and to protect markets from collapsing due to this financial/investment unknown.
Again, this could all change direction on a dime. The extremes here are already vast, with Russia banning banks from investing in crypto, Bitcion specifically – to Myanmar adopting U.S.-based stablecoin, Tether, as an officially recognized currency. And then a variety of tax implications are being sorted out, in tandem, across the globe. Many with varying outcomes.
The advantages to brands that participate early – or at least monitor the conversation – could be significant, as they’ll possess a nuanced understanding of an evolving and complex digital currency that is projected to potentially revolutionize payment processing in the coming years.
And either way, the generations most likely to use cryptocurrency have the power to make or break it, so it will be important to understand how these consumers feel either way as the technology evolves, so that your brand can evolve along with it!
Reach out for a demo and we’ll show you how to monitor this conversation and prepare your next move!