(Kitco News) – Since the early 1990s, the voting landscape in the U.S. has been dominated by older demographics, specifically the ‘Silent Generation’ and ‘Baby Boomers,’ who have helped craft U.S. economic policy via the voting booth, leading to them becoming the richest cohorts to ever exist in American history.
With those generations now entering the sunset years of life, the door has opened for younger generations, including Millennials (born between 1981 and 1996) and Generation Z (those born between 1997 and 2012), to rise the ranks, and according to Coinbase, these voters are expected to have a material impact on the outcome of the 2024 presidential elections and could help to reshape the economic system in the U.S.
“Only 9% of Americans say they are satisfied with the current financial system,” Coinbase wrote in a blog released on Monday. “And among younger Americans [aged 18-40], just 7% report that the financial system works well for them. Young voters are fed up with an outdated system and are looking for change – and this belief is fostering an emerging, first-of-its-kind pro-crypto constituency that has elevated crypto as a key campaign issue in the 2024 election cycle.”
The report noted that “Gen Z and Millennial voters make up 40% of all eligible voters, will be the majority of the electorate by 2028, and have a proven track record of swaying elections at all levels of government.”
“For example, in 2020, 55% of eligible voters under 30 made their voices heard at the ballot box, eleven percentage points higher than in 2016,” the report said. “This active constituency is likely to be a deciding factor again in 2024; 92% of registered voters under 35 say they are likely to vote in the November election.”
In addition to its size, this voting bloc differs from its predecessors in worldview, especially when it comes to realizing the so-called ‘American Dream.’
“Just 19% of Millennials and 9% of Gen Z adults feel the American Dream is achievable,” Coinbase said. “They are actively looking for change. And part of that change is crypto. As younger generations become more pressured financially and more disillusioned by the current system, they’re also becoming more empowered by technology and emboldened by their influence to do something about it.”
“As a result, younger generations own crypto in significantly greater numbers than older populations – with 25% of those aged 18-34 owning crypto compared to 14% of older Americans,” the report said. “And as we can see by the growing number of pledged Stand with Crypto advocates – 1.33 million at the time of writing – they’re looking for candidates who match their drive for innovative new solutions to systemic problems.”
With the countdown to the election underway and less than 80 days for candidates to appeal to voters, hopefuls on both sides of the aisle “who wish to win this November must pay attention to the young, diverse, pro-crypto constituency that can make or break campaigns,” Coinbase said.
While the winner of most states is expected to fall along the party lines seen in the past, a handful of battleground states remain up for grabs, and young voters may be the key to securing victory in these states, Coinbase argued.
“Contrary to popular opinion, crypto is a non-partisan issue: 41% of previous or current crypto owners under 35 in swing states identify as Democrats, 39% identify as Republicans, and 20% identify as independent or other,” the report noted. “And now, younger voters’ embrace of crypto has helped make crypto policy a key topic on the campaign trail this year.”
“Nearly two in five (38%) say crypto and blockchain can increase economic opportunities for them in ways traditional finance can’t,” Coinbase found. “Almost four in ten (38%) see crypto as the future of finance. And importantly, more than half (51%) of them are likely to throw their weight behind crypto-friendly candidates in 2024.”
“Young voters can tip the scales for either party – and this is all the more critical in battleground states where a handful of ballots can mean the path to victory for either party,” the report said.
Coinbase highlighted the state of Georgia as an example, noting that 51% of eligible voters under 30 voted in 2020 compared to 37% in 2017.
“This was the biggest jump among the demographic in the South, and a major factor in President Biden’s narrow victory in the state in 2020,” the report said. “Since then, crypto has surged as an issue of interest, especially among younger voters, and Stand with Crypto advocates in Georgia now triple the vote differential that decided the Biden v. Trump outcome in 2020.”
“With Georgia expected to be one of the most contested states in the country again this year, the pro-crypto, young voting demographic turnout will have a measurable impact on who wins the state,” Coinbase said.
A similar pattern was seen in other battleground states, including Arizona, where the increase in the number of young voters “was larger than it was nationally in 2020 compared to 2016.”
“And we know this surge comes with cries for change; 88% of previous and current crypto owners under 44 in Arizona think the financial system needs change, with 27% wanting a complete overhaul of the system,” the report said. “In Michigan, youth voter turnout in 2020 jumped to 54% from 42% in 2016, helping President Biden secure another narrow victory in one of the most important electoral college states.”
These cohorts are expected to see additional gains in participation at the upcoming election, and with them comes a new focus on digital asset innovation.
According to a poll released in May, more than 20% of voters in several battleground states consider crypto to be a key issue in the upcoming U.S. elections.
“When you narrow to the newest generation of voters, 90% of Gen Z previous and current crypto owners in five key swing states think the financial system needs change, and 61% of previous and current crypto owners under 35 in five key swing states say they are enthusiastic about voting this year for candidates who support the crypto industry,” Coinbase said. “In these states, young crypto owners are tired of the rising costs and high fees associated with traditional financial services, and believe crypto and blockchain can help solve these problems.”
“As 2024 candidates up and down the ballot make their final push toward election day, these proof points should serve as an unmistakable call to action: young, pro-crypto voters are going to make their voices heard at the ballot box this year,” the report concluded. “Politicians who want their votes must address the future they are asking for. That future is financial and economic freedom. And crypto will be the path to that future.”
