Crypto for Christmas? Inflation Still Stings!

by

Americans are feeling the pressure of higher living costs, but they are not stepping away from crypto. 🧹

A new holiday spending survey from Visa Inc. shows a growing appetite for digital assets as gifts, even as inflation continues to limit disposable income, which is about as much as a squirrel’s stash of acorns. 🐿️ The contrast highlights a deeper shift in how households adapt when money feels tight.

Inflation Is Cooling, but Budgets Still Feel Tight

Inflation has eased from its post-pandemic peak, but prices remain elevated across essentials such as housing, food, insurance, and utilities. 🏠🍎 Like a relentless beast that won’t let go, it gnaws at the edges of every dollar.

Wages have broadly kept pace with inflation, preventing a sharp drop in purchasing power. Still, the margin is thin. 📏 Like a tightrope walker balancing on a thread, households tread carefully.

After covering necessities, many households have less flexibility for investing or discretionary spending than they did before 2022. 🧾 It’s like trying to dance in a room with shrinking walls.

US energy inflation is accelerating:

CPI energy prices jumped +4.2% YoY in November, the fastest pace since February 2023.

This marks the 2nd-consecutive acceleration, following a +2.8% YoY increase in September.

The surge was driven by fuel oil, electricity, and utility gas…

– The Kobeissi Letter (@KobeissiLetter) December 23, 2025

This environment has not stopped spending outright. Instead, it has changed behavior. Consumers shop earlier, compare prices more aggressively, and rely on technology to stretch each dollar further. 🧮 Like a farmer stretching the last drop of rainwater, they squeeze every penny.

Financial confidence remains fragile, but economic participation continues. That caution shows up clearly in how people spend-and what they choose to buy. 🛍️ It’s a dance of survival, not celebration.

Crypto Emerges as a “Lean Budget” Gift

Visa’s December survey reveals that 28% of Americans would be excited to receive crypto as a holiday or Christmas gift, a figure that jumps to 45% among Gen Z. 🎁 It’s the modern-day equivalent of a silver spoon, but with more blockchain and less rust.

The appeal is not about luxury. It reflects a preference for assets that feel flexible, digital-first, and potentially long-term in value. 🌐 Like a seed planted in concrete, it’s a gamble, but a hopeful one.

At the same time, 47% of US shoppers reported using AI tools to assist with holiday purchases, primarily to find gift ideas and compare prices. This signals a consumer mindset focused on optimization rather than excess. 🤖 It’s the future, but also the present-where even Santa is a data analyst.

Could crypto replace holiday cash? More than one-in-four US adults, and nearly half of Gen-Z adults, say they would be excited to receive cryptocurrency as a gift, according to a survey from Visa and Morning Consult

– Reuters (@Reuters) December 5, 2025

Younger shoppers lead the shift. Gen Z respondents show higher adoption of crypto payments, digital wallets, biometric authentication, and cross-border shopping than any other age group. 🌍 They’re the pioneers of the digital frontier, trading gold for pixels.

For them, crypto fits naturally into a broader digital financial identity. 📱 It’s not just money-it’s a passport to the future, or at least a better Instagram feed.

The data suggests crypto gifting is not crowding out essentials. Instead, it replaces traditional discretionary items at a time when consumers remain selective. 🎯 Like a tightrope walker choosing between a banana peel and a net, they pick what they think will hold.

What This Says About the US Economy

The combination of easing inflation and persistent budget pressure points to a cautious but stable economy. 🧊 It’s like a man with a broken leg, limping but still moving forward.

Americans are not retreating, but they are adapting. Spending continues, yet it leans toward tools and assets that promise efficiency, optionality, or future upside. ⚙️ It’s a slow burn, but a burn nonetheless.

Crypto’s growing acceptance as a gift-despite tighter disposable income-signals cultural normalization rather than speculative exuberance. 📈 It’s the calm before the storm, or the storm itself, depending on your perspective.

It also helps explain why digital assets continue to attract interest even during periods of economic restraint. 🚀 Like a moth to a flame, people are drawn to the glow, even if it might burn them.

For markets, the message is clear. Inflation may be cooling, but confidence has not fully returned. 🧊 In that gap, technology and alternative assets are filling a role that traditional consumption no longer does. 🧩 It’s a new era, but one built on the old bones of desperation.

Americans may feel stretched, but they are still betting-carefully-on the future. 🎯 It’s a gamble, but what else is there to do when the dice are loaded and the table is sticky?

Read More

2025-12-25 01:07