A looming, massive transfer of wealth is one of the best reasons to be bullish on bitcoin (BTC), say crypto observers.
Nick Chong, a journalist and marketer at the HTC Exodus Bitcoin division, says millennials will likely funnel a portion of inherited wealth from their parents and grandparents into BTC, a shift that bodes well for the leading cryptocurrency’s long-term prospects, The Daily Hodl reported.
Chong tweeted: “Bitcoin’s most bullish statistic: millennials will inherit $68 trillion from baby boomers. Why? Confluence of distrust in institutions, devaluation of fiat, shift from gold to BTC, and the growth of digital tech will make Bitcoin investing a no-brainer.”
Cerulli Associates, an asset management research firm, estimates nearly 45 million US households will hand over $68.4 trillion in wealth to heirs and charity in the next quarter century.
Chong cites an April 2019 report from venture capital firm Blockchain Capital, which indicated that millennial interest in bitcoin was increasing despite the bear market at that time.
Spencer Bogart, a general partner at the firm, wrote “Younger demographics appear most inclined to purchase bitcoin: 42% of those aged 18-34 said they are ‘very’ or ‘somewhat’ likely to purchase Bitcoin in the next 5 years – up 10 percentage points from 32% in October 2017.”
Chong also pointed to data from Charles Schwab. A recent report indicates that the fifth-favorite investment among millennial clients is the Grayscale Bitcoin Trust.
Chong adds, “Expanding further, millennials and zoomers are naturally inclined towards using digital assets. People spend hundreds of dollars on CSGO weapons, League of Legends skins, etc. Is it a stretch of the imagination to say they find it easy to understand the why and what of bitcoin?”
The founder and CEO of crypto investment firm Grayscale agrees. In a mid-2019 webinar, Barry Silbert said he thinks the new generation is far more interested in investing in bitcoin than gold.
“And so, my theory is that whatever [percentage] of that $68 trillion is currently in gold, I don’t think is going to stay all in gold. It doesn’t mean it’s going to go all into bitcoin, but I do believe it’s going to find its way into other asset classes.”