The Biggest Transfer Of Wealth In Human History: Bitcoin Popularity Among Millennials And Gen X

Experts predict the greatest transfer of wealth will occur in the next few years when the baby boomers will transfer over $30 trillion in wealth to their children, the Millennials, and post-millennial generations.

Notably, the Millennials have already started making the shift towards the use of unconventional banking, with Bitcoin BTC/USD posed to be the beneficiary of the 'Great Wealth Transfer' of our time.

It is now over ten decades down the line, and the cryptocurrency market is scaling higher now more than ever. Despite the cryptocurrency market recently surpassing $2 Trillion in market capitalization, there are still numerous questions concerning the future.

In the last year, the cryptocurrency market saw a tremendous surge that saw the price of many cryptocurrencies rise to an all-time high. The first half of 2021 has been seen as a breakthrough for bitcoin and other cryptocurrencies. Bitcoin, the oldest cryptocurrency in the market, rose to surpass the $60,000 mark rising by over 280%.

The latest Bitcoin bull run was significant in pushing crypto to mainstream investing. The increased price surge, accompanied by mounting institutional interest, highlighted how small portfolio holders are now more than ever interested in Bitcoin and other digital assets.

Bitcoin Adoption reports

According to a report by Chainalysis, titled "The 2021 Global Crypto Adoption Index," cryptocurrency adoption jumped over 880% in the last year. The report explained that P2P platforms are driving cryptocurrency usage across the globe as more people shift from fiat currencies to digital currencies.

A new study by Gallup, a Washington-based analytics firm, shows that many American adults investing in Bitcoin have tripled in the last three years. These individuals have more than $10,000 in traditional investment vehicles and are willing to invest these assets into Bitcoin. The number went from a 2% to a 6% portfolio allocation.

In the UK, more than half of young investors are actively trading in cryptocurrencies, with most crowning these assets as a 'solid investments choice.'

Another report by Kraken dubbed “Inheriting USDs & Acquiring BTCs: How 'The Great Wealth Transfer' Will Fuel' The Great Bitcoin Adoption" explained how millennials and Generation X consumptions and preferences would help drive the price of Bitcoin and other cryptocurrencies. The 16- paged documents explain that these generations have shown a high liking of digital money following the numerous challenges currently available in the traditional financial market.

A similar study suggests that 66% of millennials have more faith in the cryptocurrency market than in the traditional market. These generations are popularly known for wanting everything at their fingertips. It's no shock to see them drawn to digital currencies. Notably, about 13% of those aged 18 and 49 now own Bitcoin, compared to 3% back in 2018.

Factors driving Bitcoin investment among Millennials and Gen X

In addition to easy access, there are many reasons these generations are investing in Bitcoin or planning to invest their newly acquired wealth.

Firstly, Bitcoin provides high and quick returns compared to other investment assets in the market. Bitcoin has overperformed the market in the last year and managed to beat gold as the top asset class. This has been an attractive factor for this group of people who are highly ambitious in their activities.

Despite being a volatile asset, millennials still have faith in Bitcoin as a steady and stable asset compared to alternative currencies in the market. This year alone, Bitcoin rose by 78%, while some, like Cardano (ADA) tokens, have risen by over 1000%.

In addition, since many in the millennial and Gen X populations have lived through the housing crises and the most recent financial crises caused by the COVID 19 Pandemic, Bitcoin's volatility and risk are not a major concern. 

Lastly, it is also worth mentioning that their high ambition, accompanied by having time on their side (long way to retirement), these generations are willing to take the risk of investing in Bitcoin to see how it plays out.

So far, a few like the Winklevoss Twins have taken the bull by the horns and invested millions into the Bitcoin market.

Conclusion

Given the above factors, it is clear that more and more millennials and Gen X will pour money into the Bitcoin market. In the end, the cryptocurrency market will largely be dominated by members of these generations.