Crypto and Holidays: How Do Europeans Use Digital Money?
Summer holidays will be over in a few days, but cryptocurrencies will stay with us. How do Europeans use digital money during the summer? Which transactions handled by cryptocurrencies are leading? And how do different generations of Europeans, from millennials to Generation Z, differ in their use of cryptocurrencies? One of the current studies gives us these answers.
One of the world's largest cryptocurrency exchanges, Bitget, asked [1] more than three thousand Europeans who use or hold cryptocurrencies or crypto-assets how they used them during this summer vacation.
However, the sample of respondents did not include the entire population, but only representatives of three working-age generations. Among the respondents were members of Generation X (born between 1965 and 1980), who made up 44 percent of the sample, Millennials (1981 to 1996), who made up 38 percent, and Generation Z (1997 to 2012), whose share was 18 percent. Approximately a quarter of the respondents came from Eastern Europe and three quarters from Western Europe.
Growing demand for crypto-friendly travel
A key finding of the study is that there is strong growth in demand for travel that allows the use of cryptocurrencies. The most common reason for using cryptocurrencies during the holidays was to handle payment transactions related to the holiday, with more than 85 percent of respondents citing this reason.
The most common expenses paid with cryptocurrencies were everyday purchases (58.9 percent), accommodation (58.6 percent), and transportation (55.2 percent). The main reason why cryptocurrency users actually paid with digital money while on vacation was to avoid currency conversion fees (51.5 percent of respondents). The second most important factor was the speed of payment transactions (48.6 percent).
Anonymity and technology interest across Europe
Europeans also appreciate the anonymity of cryptocurrency payments. However, the importance of this factor varies considerably across countries. For example, 51 percent of Poles mentioned anonymity, compared with 44 percent of Germans. Interest in gaining knowledge of new technologies also ranked high. This reason was mentioned most often by Italians, in 46 percent of cases.
Generational differences in crypto payments
The study also brought interesting results from an intergenerational perspective. For Generation Z, the most frequently mentioned reason for using cryptocurrency payments was low fees. This was stated by almost 72 percent of respondents from this generation.
In contrast, Generation X primarily appreciated loyalty programs or the ability to pay electronically even in very remote areas, with around 47 percent of respondents highlighting this factor.
Barriers to wider adoption
The study also showed that there are still relatively large barriers to the wider adoption of cryptocurrencies. The biggest obstacle cited by respondents is the low acceptance of cryptocurrencies by travel agencies or brokers, cited by more than 58 percent of respondents.
The second most frequently cited reason for the still relatively low level of cryptocurrency usage is concerns about the volatility of their value, mentioned by 42 percent of respondents.
Stablecoins are the top choice for travel
The study authors also asked what type of cryptocurrency users prefer when traveling. It turned out that these are stablecoins (67 percent of respondents), which have a relatively predictable value.
Despite all the difficulties and obstacles associated with using cryptocurrencies to finance vacation expenses, there is considerable optimism among those surveyed for the future. 91 percent of respondents believe that the use of cryptocurrencies in travel and tourism will become even easier and therefore more widespread in the coming years.
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