Booming Wealth and Aging Population to Drive Crypto Demand Until Century's End
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Booming Wealth and Aging Population to Drive Crypto Demand Until Century's End

Predictions indicate that the increasing global aging and wealth will likely enhance interest in cryptocurrencies like Bitcoin, as investment growth is expected to persist until the year 2100.

Global changes in demographics combined with an upswing in wealth are anticipated to significantly influence the demand for cryptocurrencies through the next century.

According to expectations, an aging population and enhanced productivity will lead to a wealthier segment of investors. This trend is predicted to keep asset demand on an upward trajectory until 2100, as highlighted in a report from the US Federal Reserve Bank of Kansas City published on August 25, which states,

“Using demographic projections to extend our historical analysis, we project that aging will raise asset demand by an additional 200% of GDP between 2024 and 2100.”

This highlights a potential decrease in real interest rates, increasing interest in alternatives such as Bitcoin (BTC).

Source: Kansascityfed.org

Investors may equate Bitcoin’s value with that of gold in 75 years

Despite being regarded as risky, it is suggested that greater regulatory clarity could lead older individuals to value Bitcoin (BTC) similarly to gold over the next 75 years, according to Gracy Chen, CEO of Bitget. As of December 2024, a report from Triple-A indicated that approximately 34% of cryptocurrency holders are aged between 24 to 35.

Chen remarked, “The maturity of crypto regulations being worked on at the moment can play a good role in fueling future demands for the asset class.” She emphasized that the emerging backing from governments and the role of crypto as a store of value would encourage the older population to view Bitcoin similarly to gold over the decades.

As of May, Bitcoin accounted for one-third, or 30.95%, of total assets in investor portfolios, a rise from 25.4% in November 2024.

Growing wealth inspires diversification into crypto

Analysts from Bitfinex state that the rise in global wealth is likely to enhance risk-taking and diversification into newly emerging asset classes like cryptocurrencies.

As wealth increases, they noted, “Increasing personal wealth increases diversification into newer assets, as risk appetite develops.” Young investors may be inclined to favor alternative coins and new crypto initiatives due to their better understanding of technology and appetite for risk.

Source: Bybit Research

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