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March 26, 2020

Kraken Says $70 Trillion Wealth Transfer Will Bring Bitcoin (BTC) to $350,000 – But Rise of Crypto Won’t Happen Overnight

By Daily Hodl Staff

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The research team at the crypto exchange Kraken says Bitcoin (BTC) is set to shatter $350,000 – but it’s not likely to happen anytime soon.

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Kraken Intelligence cites multitrillion-dollar wealth transfer that’s expected to shift assets from baby boomers to their children as a major catalyst for a Bitcoin bull run.

By crunching the numbers on how many Millennials are expected to invest in BTC, researchers set their target date for a $350,000 BTC price at the year 2044.

“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.

Here’s a projection showing the estimated flow of assets as the Baby Boom generation declines and transfers its wealth to Gen X and Millennials. Almost 70% of the total $70 trillion transfer will occur in the next 10 years.

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Relative to marginal supply, the implied price of Bitcoin in 2044 would be about $350,000 (assuming the $971 billion investment).”

Source: Kraken Intelligence

Kraken points to a 2019 survey from Blockchain Capital in which 42% of respondents between 18-34 said they will likely buy Bitcoin over the next five years. By comparison, only 8% of respondents 65 and over said they plan to buy BTC.

The research team notes that its report should not be the basis for making investment decisions or be construed as an investment strategy or recommendation to buy assets.

You can check out the full report here.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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