Generation Xers and Millennials may soon inherit almost $70 trillion from Baby Boomers. And Kraken Intelligence, the research team at the Kraken crypto exchange has put out a new report about how the ‘Great Wealth Transfer’ Will create a ‘Great Bitcoin Adoption.’
According to the document, if Millennials were to invest just five percent of their new found wealth into Bitcoin, they would increase the price to $350,000 by 2044. This would essentially give the group almost $70 trillion in wealth from a starting pool of $971 billion.
3/ Here’s a projection showing the estimated flow of assets as the Baby Boom generation declines and transfers its wealth to Gen X and Millennials.
Almost 70% of the total $70 trillion transfer will occur in the next 10 years. pic.twitter.com/zXpZf17NBB
— Kraken Exchange (@krakenfx) March 25, 2020
Investments from a generational perspective
As Bitcoin has grown in popularity, older people with a love for traditional assets have been skeptical of cryptocurrency.
The report analyzes data on this topic, going into how the upbringing of Generation Xers and Millennials affected their opinion on Bitcoin and crypto in general.
“…older people have had a less favorable view of bitcoin than Gen Xers and Millennials…. with 41% of Generation X and 55% of Millennials believing that cryptocurrencies will soon be ‘very’ or ‘somewhat’ widely used for legal transactions before 2030.”
As many Americans verge on retirement, the document suggests younger people are going to have more available investing options.
“…the larger percentage of Gen X and Millennials will continue to drive adoption [of cryptocurrency] for the coming future. While this can be explained by these generations having greater competence with newer technology, we should also take into account that bitcoin’s volatility is not suitable for people nearing retirement.”
The Coming Wealth Transfer
American Baby Boomers currently have about 57% of the total wealth, about $50 trillion of that will pass to Gen Xers and Millennials in the next two years. This is called the “Great Wealth Transfer”.
If these citizens were to invest just 1% of this money into bitcoin, the price could rocket to $70,000 — maybe more — in 2044. And finally, these numbers are based only on American investors. If you include the whole world, the real numbers could be much higher. Leading to crypto-friendly generations earning big.