Kraken’s intelligence team stated a multitrillion-dollar wealth transfer that is seen as the significant shift in assets from the baby boomers of today to their children in the future as the vital spark for the Bitcoin value to skyrocket.
Diving in deep to the specific numbers on how many Millennials are potentially going to invest in BTC, the intelligence team sees it that by the year 2044, the price of Bitcoin would be nothing less than $350k. Here is a brief look at how they crunched the numbers to that staggering figure:
By assuming 5% investment allocation beside a 2% inheritance tax, Gen X and Millennials of today may invest in Bitcoin with an approximation of $971 billion by way of their inherited wealth. That being said, when you take into account the world investment, that figure could still go much higher.
They then made a projection that shows the approximated flow of assets with the current Baby Boom generation is in decline and is in the process of transferring its wealth to the next generations. It is foreseen that almost 70% of the total monetary asset of the previous generation – $70 trillion – would transfer in the coming ten years.
Taking all that into account, they landed on the estimation given above: that by 2044, BTC price will be $350k.
Kraken then pointed out a 2019 survey conducted by the Blockchain Capital, wherein 42% of the respondents aged 18 to 34 answered that they would indeed be investing in Bitcoin in the near future. In comparison, only a meager 8% of respondents aged 60 and above responded that they have plans to do the same.
Finally, the research team noted that their report should not be seen as the basis for any investment decisions. They clarified that this is just a study in the efforts to foresee the future and not something that should be used as an integral instrument for investment strategies for purchasing assets.
The impending massive wealth transfer
Baby Boomers within the United States are currently in control of approximately 57% of the total wealth, as mentioned above. That is more than $50 trillion of which will then be passed down to the next generation, Millennials and Gen Xers, in the coming two years. Considering the staggering amount of wealth being handled here, its moniker of “Great Wealth Transfer” is just fitting.
Looking at it this way, if the youth were to use even just 1% of this estimated wealth to invest in Bitcoin, its price would already be skyrocketing to $70,000. The fact is, that number would undoubtedly be higher, considering that the interest in Bitcoin is still on the rise, especially within the younger generations. Again, this estimation is observed exclusively within the United States, meaning that the actual numbers would certainly be even higher.