A Kraken study indicates that the price of BTC could reach USD 350,000 by 2044. Millennials and Generation X would inherit nearly USD 70 billion from the previous generation.
The baby boomer generation (those born in the 1950s) will transfer a huge amount of money to the millennial generation (those born between 1981 and 1996). That inheritance could cause the latter to drive the price of Bitcoin exponentially in the years to come.
The exchange Kraken recently conducted a study titled “How the great transfer of wealth will fuel the great adoption of Bitcoin.” According to this document, the Millennials in the USA could invest about USD 971,000 million in Bitcoin in the next 25 years. They would start from about USD 70 billion that the baby boomer generation would transfer to them as an inheritance.
The firm Coldwell Banker recently did another study, which also predicts that millennials will receive up to USD 68 billion as inheritance over the next 25 years. This will lead them to become one of the wealthiest social groups, despite having grown up in turbulent times that have witnessed various global economic recessions.
In this regard, Kraken states on its corporate blog that, if this transfer occurs, the implicit price of BTC could be USD 350,000 by 2044. The exchange adds that, even if the previous projections fall short, without 1% of the money from millennials and Generation X, the price of BTC could reach USD 70,000 that year.
Blockchain Capital conducted a study in 2019, which reports what a group of people said regarding BTC. An estimate of 42% of the participants in a survey, between 18 and 34 years old, stated that they most likely will buy Bitcoin in the next 5 years. Only 8% of those who were 65 years old agreed with that statement.
In that sense, the firm Charles Schwab did a study that ranks Grayscale Bitcoin Trust No. 5 among the main companies whose stock shares millenials purchase. Those companies include Facebook, Netflix, Disney, Tesla, Alibaba, and Apple, among others.
International Internet-based market research and data analysis firm, YouGov, made a survey where the participants expressed their opinion on cryptocurrencies. Cryptocurrencies will become a widely accepted payment method by 2030, according to 55% of Millennials and 44% of Generation X people (those born between 1961 and 1979).
Kraken cites several reasons why millennials are more likely to adopt Bitcoin than other generations. They explain that this generation opts for transparency and mobility, loves technology, likes to share information collectively, and is suspicious of banking institutions.
For its part, generation X tends to buy BTC because they grew up surrounded by computers. They are also suspicious of banks, they do not consider themselves conservative, and they value the personal independence that technological tools can provide.
Together, these generations would drive Bitcoin’s price and capitalization to unusual levels, which future generations will recognize as “the great Bitcoin adoption”, according to Kraken. With a similar title, they refer to the transfer of money between generations that will occur in the next 25 years.
Kraken believes that this growth could lead to a greater change in financial investment trends. Bitcoin is the most prominent cryptocurrency regarding this investment. Those generations more in line with its fundamental characteristics will receive this transfer of this money.
The exchange also states that many still consider Bitcoin a very complicated tool to use. However, the number of existing wallets indicates that its adoption curve is more accelerated than Internet adoption. Therefore, its technological development will progressively improve and will not present adoption problems.
By Alexander Salazar