Research: Serious mistrust of banking system, millennials may tend to turn wealth to Bitcoin

The current generation of baby boomers has a lot of dislike and distrust of Bitcoin, and they are largely ignorant of this technology. Millennials, on the other hand, have mastered the technology and they will inherit trillions of dollars.

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Bitcoin boom for millennials?

According to statistics, in the next 30 years, an estimated 60 trillion US dollars of wealth will be transferred from baby boomers to millennials. Baby boomers are defined as being born between 1946 and 1964, so it is estimated that 10,000 people reach the age of 65 every day.

Ikigai fund manager Travis Kling raised an obvious question:

"Every day, 10,000 baby boomers reach the age of 65. Over the next 30 years, an estimated $ 60 billion of wealth will be transferred from this generation. Where do you think this money will flow?"

WX20200228-142323 @ 2x

Baby boomers are usually old-school investors who like traditional assets such as blue chips and commodities, and they avoid risk.

Some repeated comments from some baby boomers on crypto Twitter can prove it, they seize every opportunity to indulge in fighting the fire of Bitcoin.

They don't understand technology and are unwilling; most of them have made millions, and some have made billions. However, an intergenerational paradigm shift is imminent.

Serious mistrust of the banking system

The global economy is in trouble, even before the outbreak of the new coronavirus (Corvid-19) puts the world on a red alert. The economic boom and depression are cyclical, and the last cycle change was in 2008.

At that time, the real estate market began to decline, and banks were over-lending, enabling people to obtain loans at more than 100% of their property value.

Banks also buy and sell profitable mortgage securities backed by home mortgages and sell them to investors. Financial institutions around the world own these mortgage-backed securities, but they also include mutual funds, corporate assets, and pension funds.

Banks are demanding more mortgages (usually loans to people without credit) to increase profits on the sale of these derivatives. The bubble eventually burst, so to speak, the last financial crisis caused by the bank.

According to the Pew Research Center, millennials were born between 1981 and 1996, so many people have vivid memories and experience of the global economic crisis. Most of them have reached adulthood, entered the workforce in the face of the peak of the recession, and many are now carrying heavy debt.

As a result, there is widespread mistrust of the banking system among this population, and this trust has led to this economic collapse. Satoshi Nakamoto emphasizes this in his now famous Bitcoin white paper.

"The central bank must be trusted not to devalue the currency, but the history of fiat currencies is full of disruption to this trust. Banks must be trusted to hold our money and transfer them electronically, but they will pass the wave of credit bubbles It lends out, but reserves are scarce. "

Therefore, it is reasonable to believe that a large part of these wealth will not flow into the banking system or old-school assets, but rather into the immutable, limited and reliable technology-Bitcoin.