Shifts in global demographics and increasing wealth are likely to drive cryptocurrency adoption and asset demand well into the next century.
The demand for worldwide assets, including cryptocurrencies, is projected to rise due to an aging population and enhanced productivity, resulting in a wealthier, older demographic ready to invest.
This trend is expected to influence asset demand until 2100, as indicated by the US Federal Reserve Bank of Kansas City. “Population aging suggests that the upward trend in asset demand observed over recent decades will persist,” a research report published on August 25 stated.
“Our historical analysis, extending with demographic projections, predicts that aging will boost asset demand by an additional 200% of GDP between 2024 and 2100.”
The report suggests that this trend could “lead to a sustained decline in real interest rates,” which would likely enhance interest in alternative investments like Bitcoin (BTC).
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Bitcoin may be viewed as gold in 75 years
Despite cryptocurrencies being perceived as risky assets, increasing regulatory clarity might cause the aging population to regard Bitcoin (BTC) on par with gold in the next 75 years, according to Gracy Chen, CEO of cryptocurrency exchange Bitget.
As of December 2024, about one-third (34%) of global cryptocurrency holders were aged between 24 to 35, based on a report by crypto payment company Triple-A.
Although cryptocurrencies remain volatile, increasing regulatory clarity and institutional products like ETFs could make Bitcoin more appealing to older investors, Chen explained to Cointelegraph.
“The ongoing maturation of crypto regulations could significantly enhance future demand for this asset class.”
Chen emphasized that crypto’s increasing “government endorsement” and established role as a store of value will prompt the older demographic to “adapt to value Bitcoin similarly to how they value gold over the next 75 years.”
As of May, Bitcoin constituted one-third (30.95%) of total assets in investor portfolios, rising from 25.4% in November 2024.
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Increasing wealth promotes crypto diversification
Analysts from cryptocurrency exchange Bitfinex noted that rising global wealth is likely to lead to a greater risk appetite and diversification into emerging asset classes, including crypto.
“Growing personal wealth facilitates diversification into newer assets as risk tolerance evolves,” the analysts told Cointelegraph. “Higher wealth levels are expected to encourage increased demand for crypto, while investors with longer-term investment goals may be more inclined to invest in Bitcoin.”
They also mentioned that younger, tech-savvy investors are likely to favor altcoins and newer crypto projects, owing to their deeper understanding of technology and risk tolerance.
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