Galaxy Digital CEO and founder Mike Novogratz believes that a transfer of wealth to the next generation could inject $225 billion into Bitcoin (BTC) and other cryptocurrencies.
Novogratz tells his 461,900 followers on the social media platform X that he believes that millennials are more inclined to invest in digital assets than baby boomers.
“This has big implications for BTC and other digital assets. Young people have proven to better understand digital assets, showing a willingness to invest in the space. As wealth passes from one generation to the next, as much as $225 billion could flow into digital assets.”
Novogratz also believes that the younger generation’s appetite for digital assets will lead to more politicians in favor of cryptocurrencies.
“This will also have a profound impact on the US’s social and political landscape. Digital assets have always been a young people’s revolution, and they will look to leaders and policies that represent their views.”
He says that the younger generations, including both millennials and Gen Z, “stand to have vast influence over the approximate $84.4 trillion set to pass from baby boomers to millennials and Gen Z.”
He bases his comments on a new report issued by Galaxy related to the impacts on crypto by the so-called great wealth transfer.
Says the report,
“If the Great Wealth Transfer were to occur today, we estimate an incremental $160 billion-$225 billion would flow into crypto markets based on the greater acceptance rates of the technology by younger generations relative to baby boomers.
As most of the wealth held by boomers and older generations is expected to be passed along to younger generations by 2045, our estimate suggests the impact of the Wealth Transfer may result in $20 million-$28 million of daily incremental buying pressure across the crypto market over the next 20 years.”
Survey data in the report shows millennials are the highest adopters of digital assets, five times that of baby boomers.
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