Bitcoin is often seen as a younger investor’s asset because these participants can more easily deal with the wide price swings associated with it.
However, an early Bitcoin bull says a wave of cash from baby boomers could soon flood the crypto market, with Bitcoin being a primary target for that capital.
“Galaxy Digital CEO Mike Novogratz has predicted that as much as a trillion dollars could flow into bitcoin over the next year as wealthy baby boomers get into cryptocurrency,” reports Bitcoin.com. “With the example of Morgan Stanley, he says that more banks will start offering bitcoin exposure to their customers.”
A Boost from Morgan Stanley?
Among the long list of issues facing Bitcoin and other cryptocurrencies is adoption. When will crypto become more widely accepted for mainstream activities?
For HODLers and crypto fans alike, the good news is the adoption trajectory for Bitcoin looks compelling. Looking at the S-curve, which measures adoption of new technologies, Bitcoin is right where it should be according to many market observers.
“Following the announcement by Morgan Stanley to offer access to bitcoin funds to its wealthy clients, Novogratz predicted that other major banks and trading platforms will follow suit. This will likely spark the rush from wealthy baby boomers, he opined,” according to Bitcoin.com.
The idea of decentralized currencies goes far beyond Bitcoin and Ethereum. Today, all kinds of companies, organizations, and governments are exploring the concept of initial coin offerings, or ICOs.
Businesses and currencies exist for roughly the same purpose: to facilitate the exchange of value. Fiat currencies like the U.S. dollar are positively primitive compared when compared with the promise of blockchain and the emerging token economy, which some technologists have taken to calling an asset operating system.
“The Galaxy Digital executive is not the only one expecting a flood of investments from baby boomers. Recently, JMP Securities predicted that about $1.5 trillion could flow into bitcoin from wealthy clients of investment banks,” concludes Bitcoin.com. “The firm based its projection on a modest portfolio allocation, citing that “Around $30 trillion of assets in the U.S. retail wealth management industry currently do not have direct access to bitcoin.”
For more news, information, and strategy, visit the Crypto Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.