Millennials to Drive the Flow of Trillions of Dollars in Bitcoin in the Next Few Decades: Digital Currency Group CEO
- Bitcoin acceptance phase: dismissive, skepticism, intellectually curious, believers, and crypto-evangelists
- $68 trillion that is currently in gold won’t stay in it forever, this will move into Bitcoin which is young and innovative
Speaking during the 2019 mid-year Review Webinar, Barry Silbert, the chief executive of Grayscale Investments highlighted a generational shift in investment patterns that will drive trillions of dollars into Bitcoin in the coming decades.
Last week, in its quarterly report, the digital asset manager revealed strongest quarterly inflows, with strengthening institutional demand dominated by hedge funds. During the third quarter, Grayscale’s Bitcoin Trust Fund nearly tripled in value.
During the event, Silbert explained five phases of Bitcoin acceptance, it starts with investors being “dismissive” that slowly turns into a healthy “skepticism.” Now they become “intellectually curious” about the new asset class in the market before they become “believers” and finally “crypto-evangelists.”
Trillions of Dollars to Flow into Bitcoin
In company’s mid-year Review webinar, Silbert said over the last 12 months, there has been a shakeout of the weaker alternatives to Bitcoin. This he says would drive Bitcoin’s dominance in the cryptocurrency market and further push it to new all-time highs.
Silbert reiterated his comparison with gold pointing out the yellow metal having a market capitalization of $8 trillion while the flagship cryptocurrency has only about $200 billion.
However, he believes Bitcoin is due for a much greater share that will come from the Generation X and millennial investors who will get wealth past down to them from the Baby Boomer generation born in the 1950s and 60s who favor traditional assets.
According to him, $68 trillion of wealth held by baby boomers and the older generation, in the US alone will be handed down to the millennials that will be added into Bitcoin.
“My theory is that whatever of that 68 trillion that is currently in gold, I don’t think it’s going to stay all in gold,” said Silbert.
Millennials to Drive Bitcoin’s Market Cap to Trillion Dollars
Recent surveys have shown that Bitcoin is becoming a popular investment option for young Americans.
So, it makes sense that a generation that grew up with the Internet will be drawn towards the digital currency, Bitcoin, which Twitter founder Jack Dorsey projected to become the currency of the Internet.
“To the Millennial generation gold is seen as the establishment: it's the banks, it's old people,” Silbert added. “Bitcoin is young and innovative: it's a disruptor. It's an investment in vision and entrepreneurship.”
With the baby boomer generation already beginning to retire, it has been anticipated there will be a massive generational wealth transfer.
However, “Doesn’t mean its going to go all into Bitcoin but I do believe that its going to find its way into other asset classes,” Silbert said. Currently, Bitcoin is around $10,000, down 50 percent from its all-time high of $20,000. And a trillion-dollar market cap is not a whacked figure.
There have been several predictions that call for Bitcoin to surge to $50k and as high as $1 million and beyond.
Though there's still a way to go to achieve this trillion-dollar market cap, once we reach this figure, it will cement the decade-old digital currency's status as a store of value.