INTRODUCTION
Bitcoin is so multifaceted, complex, and intriguing that it can be referred to as the “Great Educator.” Mathematics, encryption, monetary economics, game theory, networking, and many more disciplines are prerequisites to understanding it in its entirety. Although bitcoin is a phenomenon that only a polymath could fully grasp, such complexity has yet to thwart off its use and/or ownership. The data not only supports that adoption remains robust, but also that the generations of tomorrow, namely Millennials and Generation X, will champion the next wave. This is particularly conspicuous when considering both generation’s beliefs, preferences, and expectations, which align with the very fundamentals of bitcoin. Coupling this dynamic with the imminent “Great Wealth Transfer,” the most significant wealth transfer that the US and world have ever seen, there is a tremendous amount of wealth that bitcoin stands to capture in the decades ahead. Using conservative assumptions, we attempt to quantify the impact of this massive demographic shift in the United States. Because of the United States’ relevance in the crypto-asset industry, as well as the breadth and quality of readily available data, we’ve focused exclusively on the US market in this discussion. We view our analysis as a potential proxy for global adoption.
Over the next several decades, bitcoin will traverse through its Adoption Phase, a period where new users and investors onboard to the bitcoin network. During this period, the United States will undergo an estimated intergenerational wealth transfer of $68.4 trillion, a potential tailwind for bitcoin adoption due to this once-in-a-lifetime demographic shift. We’ve calculated that Millennials (ages 24 to 39) and Generation X (ages 40 to 55) could drivenearly $1T or more of wealth into bitcoin over the next 25 years as both generations embrace the emerging technology and asset class. In sum, the generations of tomorrow will one day look back and recognize the forthcoming decades as “The Great Bitcoin Adoption.”
