The millennium generation will drive the adoption of Bitcoins and other cryptomyces in the coming years as the emerging market grows
The promotion of Bitcoin (BTC) adoption will be in the hands of the millennium generation. These comments were made by BlockFi’s CEO at a panel discussion at this year’s BlockShow Summit in Singapore. The panel shared insights about the future of cryptomorphic adoption and what needs to be done to ensure the industry moves forward.
The panel consisted of Aya Kantorovich from FalconX, Zac Prince from BlockFi and Michael Sonnenshein from Grayscale. Zac Prince, BlockFi’s CEO, said that the Y generation is a generation plagued by student debt, low wages and lack of savings. However, they can rewrite their financial history using Bitcoin and cryptomoedas.
The discussion with the theme „Investment trends of the Y generation – a new wave of personal finance“ spoke about the impact of the millennium generation on the future of digital assets. Prince highlighted the main adoption trends linked to young investors and millennials.
The first is the transfer of generational wealth from baby boomers to millennials through inheritance. The other two are the emergence of alternative assets and the younger generation’s preference for everything digital.
Earlier this year, data provider Preqin revealed that alternative assets under management reached $10 trillion. The figures are up 55% from 2013. Alternative assets are investments that do not conform to traditional asset classes of stocks, bonds or certificates. They include hedge funds, commodities, real estate, structured products, private equity and collectables.
Although most of the alternative assets under management are controlled by institutions, the millennium generation plays a major role in promoting the market in the coming years. Prince said he expects cryptomoedas to grow as an alternative asset class in the coming years, and the millennium generation would drive that growth.
He added that as the millennium generation with crypto investments increases its investment portfolio, it is only a matter of time before financial institutions distribute more products to meet that demographic data. This forecast is already becoming a reality, as institutional funds are flowing into the crypto sector faster than in the past.
At the end of 2019, crypto funds had only $2.5 billion in assets under management. A year later, crypto funds now control almost $15 billion in assets under management.
The focus is not limited to Bitcoin, as most people think. BTC gets the largest share of the market, but investors are now looking for other products. Michael Sonnenshein, managing director of Grayscale, said the younger generation is seeing cryptomoeda diversification as a key part of growth. They are now looking for other assets like Ethereum and Litecoin.