The CEO of Galaxy Digital believes that baby boomers could begin to enter the cryptocurrency market en masse. This sector would begin to invest millions of US dollars, thus strengthening the position of cryptocurrencies in the financial mainstream.
Gen Z and millennials have dominated the crypto market for years. These young generations have had a greater capacity to understand and accept the workings of crypto assets. However, investor Mike Novogratz believes that this could start to change. He assures that baby boomers will enter the crypto market en masse next year.
Existence of a Generation Gap
The generation gap that exists in the adoption of cryptocurrencies should not take anyone by surprise. The last two generations (millennials and Z) have had extensive contact with technology. Hence, they are used to using digital instruments such as Bitcoin. However, baby boomers have not had the same type of experience.
For that reason, members of this generation still believe that they can only find investment-worthy assets in the traditional sector. More specifically, they believe that it is best to invest in the US dollar, stocks, and real estate. They do not consider under any circumstance virtual currencies such as Bitcoin as they do not provide enough confidence in their solidity.
However, although these assets are typically aimed at younger generations, the investment from the baby boomer generation has benefited them. Mike Novogratz believes that baby boomers could provide up to a trillion US dollars to the cryptocurrency market next year.
Baby Boomers Enter the Cryptocurrency Market
The investor and CEO of Galaxy Digital noted that cryptocurrencies have become widely accepted financial assets in the traditional market. He added that wealthy baby boomers could start investing millions of US dollars in the cryptocurrency market. That would help further strengthen the position of cryptocurrencies as mainstream financial assets.
“That giant group of wealth could invest up to a trillion US dollars over the next year. The money could start arriving early next month,” according to the executive.
Major Financial Institutions Also Enter this Market
The entry of major financial institutions into the cryptocurrency market would also drive this movement even further. A clear example is the new launch of the platform for trading Bitcoin derivatives from Goldman Sachs. Besides, Morgan Stanley has announced that it will give its wealthiest customers access to buy Bitcoin through their investment accounts. In that way, they are opening the doors for baby boomers to enter the cryptocurrency market.
For their part, JMP Securities predict the entry of USD 1.5 trillion into the cryptocurrency market by large institutional investors. Members of the baby boomer generation constitute a good part of this group, who could become the main drivers of the price of cryptocurrencies.
Cryptocurrencies have gained so much strength within the world economy that representatives of all sectors have been adopting them. The fact that the baby boomer generation is contributing to their growth is just one sign that proves it.
By Willmen Blanco