Cryptocurrency Wealth Transfer
There have been many articles on the subject of cryptocurrency wealth transfer, but what exactly are they talking about? Pretty much everyone is aware that in 2017 a lot of investors lost money having bought Bitcoin at $20,000 during all-time highs – while others became crypto-millionaires. Those smart enough to sell at all-time highs made tremendous gains and may or may not have gotten back into crypto when the market went bearish. But the intent of this post is to look at what many see as a cryptocurrency wealth transfer happening right before our eyes.
Cryptocurrency could be a huge, disruptive force that is signaling the start of wealth transfer. Trillions of dollars are expected to be transferred to younger investors over the course of the next 30 years. Baby Boomers are now outnumbered by millennials, but still control 70% of disposable income in the United States. Within the next 20 to 30 years, that wealth will transfer to younger beneficiaries that do not trust financial institutions, nor invest in traditional markets. Recent studies indicate that 30% of young adults age 18 to 34 see themselves investing in Bitcoin rather than traditional stocks or bonds. Awareness of cryptocurrency is about 42% vs. 15% among people age 65 and older. It is safe to say that as millennials receive inheritances from their elders, investment in cryptocurrency is likely to increase.
Millennials are well aware Bitcoin is limited in supply and, despite the rise in price or the risks, cryptocurrency will most likely be an asset many will choose to buy. Meanwhile, there are significant indicators that institutional investors are currently buying Bitcoin and some altcoins, while at the same time advising the public to avoid cryptocurrency. Here is an interesting video featuring well-known financial advisor, Teeka Tiwari, offering insights to ponder on the subject he discusses at length with Glenn Beck.
Why Invest Now?
Should one listen to those advising to avoid cryptocurrency, or to those making startling predictions about the direction of Bitcoin and cryptocurrency wealth transfer? That is the question, isn’t it? Millennials aren’t the only ones interested in buying and trading cryptocurrency, so competition for Bitcoin will only become greater with new investors entering the arena. This very reality will most likely force prices to even higher levels. Should one invest when financial kingpins are saying you should run away?
It may be wise to start learning how to invest vs. worrying about when to invest. The best way to start is by gaining an understanding of cryptocurrency. Even though the market has fallen recently, that does not mean it is a good idea to shun the opportunity of significant gains to come. Cryptocurrency investment requires a bit more knowledge than traditional markets. You will need to set up digital accounts, transfer fiat money into those accounts, and learn which exchanges are safe and secure. You also must learn how to safely store your cryptocurrency assets once they are obtained. Understanding and controlling private keys is critical knowledge to have.
Where are we now?
It is estimated that on the “technology adoption curve” Bitcoin is at the beginning edge of the “early adopters” stage. This classic adoption curve is applied to the emergence of all new technologies and parallels well with some of the greatest innovations of recent history like air travel, television, cell phones, credit cards, smartphones, video games, the Internet, and more. It is also wise to note that Bitcoin is a worldwide currency, thus finding exact metrics to define adoption is difficult. Regardless of exactly where we are on the adoption curve, most agree that it may very well be the first “buyable” S-curve. Bitcoin is finite in supply, therefore the more users that adopt it, the higher the price should rise.