Global demographic shifts and rising wealth could power cryptocurrency adoption and asset demand well into the next century.
Demand for global assets, including cryptocurrencies, is expected to be driven by an aging global population and increased productivity worldwide, resulting in an older population with more capital to invest.
This dynamic will drive asset demand until the year 2100, according to the US Federal Reserve Bank of Kansas City. “For asset demand, population aging means that the upward trend from recent decades will continue,” a research report published on Aug. 25 said.
“Using demographic projections to extend our historical analysis, we project that aging will raise asset demand by an additional 200% of GDP between 2024 and 2100.”
The report added that this dynamic could “imply a continued decline in real interest rates,” boosting demand for alternative investments such as Bitcoin (BTC).
Source: Kansascityfed.org
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Investors will value Bitcoin like gold in next 75 years
While cryptocurrencies are still considered risky assets, growing regulatory clarity may lead the aging population to value Bitcoin (BTC) as much as gold over the next 75 years, according to Gracy Chen, CEO of cryptocurrency exchange Bitget.
About one-third, or 34% of global cryptocurrency holders were aged between 24 to 35 as of December 2024, according to a report by crypto payment company Triple-A.
While crypto remains a volatile asset class, growing regulatory clarity and institutional products like ETFs could make Bitcoin more attractive to older investors, Chen told Cointelegraph.
“The maturity of crypto regulations being worked on at the moment can play a good role in fueling future demands for the asset class.”
Chen added that crypto’s growing “government backing” and proven role as a store of value will see the aging population “evolve to value Bitcoin as much as they have come to value gold within a 75-year gap.”
Crypto investor asset allocation. Source: Bybit Research
Bitcoin accounted for one-third, or 30.95%, of total assets in investor portfolios as of May, up from 25.4% in November 2024.
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Rising wealth fuels crypto diversification
Analysts at cryptocurrency exchange Bitfinex said that increasing global wealth will likely translate into greater risk appetite and diversification into emerging asset classes such as crypto.
“Increasing personal wealth increases diversification into newer assets, as risk appetite develops,” the analysts told Cointelegraph. “We see higher wealth levels feeding through into increased demand for crypto, while investors with longer investment horizons are more likely to be open to investing in Bitcoin.”
They added that younger, more tech-savvy investors “will look more favorably at altcoins and newer crypto projects, given their greater understanding of technology and risk tolerance.”
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