Global demographic changes and increasing wealth may drive cryptocurrency adoption and asset demand well into the next century.
The demand for global assets, including cryptocurrencies, is projected to rise due to an aging population and enhanced productivity globally, leading to an older demographic with more capital for investment.
This trend is expected to sustain asset demand until 2100, as noted by the US Federal Reserve Bank of Kansas City. “For asset demand, population aging means that the upward trend from recent decades will persist,” a research report published on Aug. 25 stated.
“Employing demographic forecasts to extend our historical analysis, we estimate that aging will elevate asset demand by an additional 200% of GDP between 2024 and 2100.”
The report noted that this trend could “signify a continued drop in real interest rates,” which may enhance demand for alternative investments like Bitcoin (BTC).
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Investors may view Bitcoin like gold in the next 75 years
Although cryptocurrencies are still seen as high-risk assets, enhanced regulatory clarity may lead the aging demographic to value Bitcoin (BTC) similarly to gold over the next 75 years, according to Gracy Chen, CEO of cryptocurrency exchange Bitget.
While crypto continues to be a volatile asset class, increasing regulatory clarity and institutional products like ETFs could make Bitcoin more appealing to older investors, Chen told Cointelegraph.
“The progress in crypto regulations currently underway can significantly boost future demand for this asset class.”
Chen indicated that the growing “government backing” of crypto and its established role as a store of value will encourage the aging population to “begin to value Bitcoin as they have come to value gold in a 75-year timeframe.”
As of May, Bitcoin constituted one-third, or 30.95%, of total assets in investor portfolios, rising from 25.4% in November 2024.
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Growing wealth enhances crypto diversification
Analysts at cryptocurrency exchange Bitfinex believe that rising global wealth will likely result in a greater appetite for risk and diversification into emerging asset classes like crypto.
“Increasing personal wealth drives diversification into newer assets as risk tolerance expands,” the analysts told Cointelegraph. “We anticipate that higher levels of wealth will contribute to increased demand for crypto, while investors with longer time horizons are more likely to consider investing in Bitcoin.”
They also mentioned that younger, tech-savvy investors “will likely favor altcoins and newer crypto projects due to their superior understanding of technology and risk tolerance.”
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