Millennials will drive the adoption of Bitcoin and other cryptocurrencies in the years to come as the emerging market grows
Driving the adoption of Bitcoin (BTC) will be in the hands of millennials. These comments were made by the BlockFi CEO in a panel discussion at this year’s BlockShow Summit in Singapore. The panel provided insights into the future of cryptocurrency adoption and the steps that need to be taken to ensure the industry continues to evolve.
The panel consisted of Aya Kantorovich from FalconX, Zac Prince from BlockFi and Michael Sonnenshein from Grayscale. Zac Prince, the CEO of BlockFi, stated that millennials are a generation plagued by student debt, low wages and a lack of savings. However, you can rewrite your financial history with Bitcoin and cryptocurrency.
The discussion on “Millennial Investment Trends – New Wave of Personal Finance” discussed the impact of Millennials on the future of digital assets. Prince highlighted key adoption trends associated with young investors and millennials.
The first is the transfer of generational wealth from baby boomers to millennials through inheritance. The other two are the rise of alternative assets and the younger generation’s preference for everything digital.
Earlier this year, data provider Preqin announced that it had alternative assets under management reaching $ 10 trillion. The numbers have increased by 55% compared to 2013. Alternative assets are investments that do not correspond to the traditional asset classes of stocks, bonds or certificates. This includes hedge funds, commodities, real estate, structured products, private stocks, and collectibles.
While most of the alternative assets managed are institutionally controlled, millennials will play a huge role in driving the market forward in the years to come. Prince stated that he expects cryptocurrencies to grow as an alternative asset class in the coming years, and millennials would drive that growth.
He added that it is only a matter of time before financial institutions bring more products to market to cater to these demographics as millennials invested in crypto expand their investment portfolios. This forecast is already becoming a reality as institutional funds are flowing into the cryptocurrency sector faster than in the past.
By the end of 2019, crypto funds were only managing assets of $ 2.5 billion. Fast forward a year later, and crypto funds now control nearly $ 15 billion in assets under management.
The focus isn’t limited to Bitcoin as most people think. BTC takes the lion’s share of the market, but investors are now looking for other products. Michael Sonnenshein, Managing Director of Grayscale, stated that the younger generation see diversifying crypto as a key element of growth. You are now looking at other assets like Ethereum and Litecoin.