Bitcoin: The big wealth transfer could come sooner than expected

The recent Bitcoin bull run has at least pushed crypto to the edge of mainstream investment. The exponential rise in price coupled with rising institutional interest reflected the general perception that digital assets are a valuable addition to investment portfolios. In addition, not only large investors but also comparatively smaller portfolio owners are looking for Bitcoin investments and interest is only growing by the minute.

Source: Coinstats

A new study by Washington-based analytics firm Gallup found that American adults’ Bitcoin investments have tripled in the past three years, with more than $ 10,000 in traditional investment vehicles. It rose from a portfolio allocation of 2% to 6%, a result that suggests Bitcoin is slowly reaching general adoption and entering the maintenance market.

The Gallup Investor Optimism Index poll in the second quarter also found that young adult investors were more likely to be bitcoin investments. It was also found that 13% of 18- to 49-year-olds owned Bitcoin, compared to just 3% in 2018.

However, it was more difficult for BTC to get inland with older investors as only 3% of those over 50 own the digital asset. However, the number has tripled from 3 years ago when it was only 1%. Even so, this number is an indication of the general reluctance of experienced investors towards cryptocurrencies.

There is also a visible gender gap between investors, as it turned out that of the BTC investors surveyed, 11% were male BTC investors, while only 3% were female. Unfortunately, this is in line with the general consensus from previous reports that female investors are lagging behind. That being said, there has been some reversal lately, which is also underscored by data from trading websites like eToro and Robinhood.

Overall, the critical tide seemed to be turning on crypto as those who believed they would never be interested in buying crypto fell from 72% to 58% between 2018 and 2021. Likewise, risk perception associated with crypto declined significantly over the same period, although it was still viewed with suspicion by most.

In any case, the proportion of investors surveyed who described it as “very dangerous” fell from 75% to 60%, while 35% considered it “considerably dangerous” and only 5% regarded it as harmless.

The above report concluded by stating that

“Big investments in Bitcoin by well-known companies like Tesla, Square and Morgan Stanley could give it more mainstream credibility.”

Still, the discrepancy between younger and older investors is not surprising. Millennials are known to be the most enthusiastic about crypto because they are at a point in life where they can take risks and are more likely to adopt new technologies. In addition, the 2008 financial crisis opened the eyes of many of them and they are still struggling to maintain their confidence in the current financial and banking systems.

The results of the Gallup report strengthened belief that the largest intergenerational wealth transfer, with millennials inheriting $ 68 trillion from older generations, will benefit Bitcoin. It is unlikely that gold, which has already declined in popularity, and other stocks and investments will hold most of that wealth as Millennials and Gen Z turn to unconventional banking.

In fact, a recent CNBC survey found that half of the millennial millionaires surveyed had at least 25% of their wealth invested in cryptocurrencies, while over a third of them invested over 50% in cryptocurrencies. Other surveys have also found that millennials are more likely to trust their dentist than banks and Wall Street.

As more millennials move their wealth from traditional banking to cryptocurrencies, this impending wealth transfer could only be one of the greatest revolutions in financial history, as wealth changes hands not just across generations, but across financial institutions and systems as a whole .

Comments are closed.