The world of technology is expanding rapidly, and every sector of our lives is affected by it. It is no surprise that with all the advancements, the investment market has also expanded, and new investment options have emerged. The younger generation, often dubbed ‘Millennials,’ have hence built a taste for modern-day investment options like cryptocurrencies.
Millennials today are surrounded by technology, and they live a digital lifestyle. Hence, traditional investment options like gold, stocks, bonds, etc. aren’t too appealing for some of them. Given the relative newness of assets like Bitcoin (BTC), it’s not surprising that it’s more popular among younger investors, who are often considered to have an enormous appetite for risk.
This appetite for new investment options and risk is believed to have the potential to boost BTC to $350,000 in the future, according to a report published by Kraken Intelligence, the in-house research team at the crypto exchange Kraken.
Inherited wealth could boost Bitcoin
As per the report, the transfer of wealth from the ‘Baby Boom’ generation (previous generation) to the millennials and Generation X (1965-198), in the United States itself, could be a boost for bitcoin. The trillion dollars of inherited wealth, along with a shift in investment trends are expected to massively impact bitcoin, and the price of the coin could hit $350,000 by 2044. The report reads:
“In this case, we assume that the average percentage of inherited wealth, or “peak allocation,” allocated to bitcoin will reach 5% in 2044. Assuming a 5% peak allocation by 2044 and a 2% inheritance tax rate, we expect just under $1T of wealth to flow into bitcoin over the next several decades.”
Despite gaining popularity among the young, those with an affinity for traditional assets like gold, are not inclined towards modern-day investment options like bitcoin. The report has factored in data based on this by conducting surveys that were based around the cultural profiles of the millennials and how their stances towards cryptocurrencies have developed in general.
“…older generations possessed a less favorable view of bitcoin than Millennials and Gen Xers. While the survey concluded that 81% of U.S. adults were familiar with at least one type of cryptocurrency, bitcoin being the most popular at 75%, approximately 55% of Millennials and 41% of Generation X familiar with at least one cryptocurrency voiced their belief that cryptocurrencies will become “very” or “somewhat” widely accepted for legal transactions before 2030.”
The report further added that “a disproportionate percentage of the Millennials and Gen X will continue to be the driving force of adoption for the foreseeable future,” as “both generations harness a greater technological competence than their elders.” Those on the verge of retirement don’t prefer cryptocurrencies due to the volatility involved.
The sentiment is Bullish
The report concludes that if the present generation invested just 1% of their inherited wealth into BTC, the flagship cryptocurrency could very quickly hit $70,000. What’s more exciting is the fact that these numbers are just based on investors in the U.S, and cryptocurrencies being of global reach, could easily see the numbers going higher.
As previously reported by The Daily Chain, investor and billionaire Tim Draper advised millennials to invest in Bitcoin to build up a retirement fund, earlier this year. Draper, who believes bitcoin could hit $250,000 in the near future, said in an interview with Fox Business:
“Well, here’s what’s happened. I mean, I think if you’re a millennial, you look at new currency, you look at Bitcoin, and you say, ‘hey, this is great because it’s not my father’s Oldsmobile.’”
Draper believes that the traditional banking system is out-dated and is the reason why so many millennials are in debt. He added that “with the current salaries, they can’t quite pay it off. It’s a really difficult time, and they’ve become renters rather than buyers because they have to.”