According to Odaily, Matthew Sigel, the head of digital asset research at VanEck, predicts that over $60 trillion could potentially flow into cryptocurrency in the next 20 years. This prediction is based on a 2024 research report from the private banking division of a US bank. The report suggests that by 2045, Generation X, millennials, and future generations will inherit $84 trillion in wealth from older generations and baby boomers.
To facilitate the flow of $60 trillion into cryptocurrency, young American investors aged between 21 and 43 would need to inherit $42 trillion from the baby boomer generation and consistently allocate 14% of their funds to cryptocurrency investments. This would require young investors to invest $300 billion annually over the next 20 years. The research indicates that young, aggressive investors allocate 14% of their funds to cryptocurrency, while conservative investors of the same age group allocate 12% and 17% of their funds respectively. The bank emphasized this finding, noting that 'the most conservative group has the highest average exposure to cryptocurrency.' In contrast, investors aged 44 and above have almost no cryptocurrency allocation in their investment portfolios.
The study also found that 28% of investors aged between 21 and 43 believe that cryptocurrency has the most growth potential. This suggests that cryptocurrency investment is the second most popular investment among young investors, only behind real estate and private equity, which are favoured by 31% and 26% of young investors respectively. In contrast, only 4% of investors aged 44 and above believe that cryptocurrency has the most growth potential, ranking it second. The bank stated that the difference between young and older investors 'goes beyond the allocation to cryptocurrency or private investments,' pointing out a more fundamental change. The report noted that 72% of young investors believe that they can no longer achieve above-average returns by investing only in traditional stocks and bonds. Meanwhile, only 28% of investors aged 44 and above agree with this view. The bank also speculated that young investors' interest in cryptocurrency may be related to its uncertainty.