San Francisco-based cryptocurrency exchange Kraken has published a report predicting that a coming wealth transfer will cause Bitcoin (BTC) to hit $350K by 2044.

The gist of the report is that all those Millennials and Generation Xers, currently in hunkering down in the US as the COVID-19 pandemic rages, now stand to inherit nearly $70 trillion from Baby Boomers over the coming years.

According to Inheriting USDs & Acquiring BTCs: How ‘The Great Wealth Transfer’ Will Fuel ‘The Great Bitcoin Adoption,  the report compiled by Kraken Intelligence, if US Millennials invested 5% of their coming inheritance in Bitcoin (BTC), it could push the price up to $350K by 2044 – in effect, giving the investors $70 trillion of value from a $971 billion investment.

The report also points out that, if the younger generations invest just 1% of the wealth in BTC, it could still reach $70K or more by 2044. It’s also worth noting that the Kraken report only uses US data – if similar patterns emerge elsewhere in the world, it could push the price even higher.

2/ Assuming a 5% investment allocation and a 2% inheritance tax, by 2044 Gen X and Millennials could invest an estimated $971 billion into #Bitcoin as they inherit wealth.

World investment could make this figure much higher. pic.twitter.com/r0VV97HIgz

— Kraken Exchange (@krakenfx) March 25, 2020

The logic is quite simple; that younger generations are more enthusiastic about Bitcoin (BTC), and so more likely to invest in cryptocurrencies than the older ‘Baby Boomer’ generation, who currently control approximately 57% of the total wealth in the United States.

Because around $50 trillion of this wealth is expected to pass to Millennials and GenXers in the coming two years, the phenomena has been dubbed the “Great Wealth Transfer.”

Interestingly, Kraken isn’t exclusively committed to the crypto world anymore, as just two weeks ago it became the first major crypto exchange to launch traditional forex trading.

AYO.NEWS says:

Given the timing of this report, we can’t help but suspect its simply a ‘feel good’ marketing piece, aimed at boosting business from the millions of Millennials and GenXers currently stuck at home and looking for things to do.

Precisely because of unprecedented economic crash that has already begun, not to mention the possibility the older generations will be decimated by the pandemic, the statistics and assumptions the report is based on are probably already meaningless.

Trying to predict the future is always hit and miss, but right now it’s absurd.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

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