If you were born between 1946 and 1964, you are part of the generation referred to as “Boomers” which is short for “Baby Boomer” which describes anyone born shortly after World War 2. They make up about 25% of the population and control over 70% of the total disposable income in the US. There was such a population boost that by the year 2030, boomers will outnumber children. There is going to be a huge transfer of wealth when the boomers start to end their time on Earth. It is estimated that over 60 trillion dollars will be handed over to the next generations known as Gen-X and Millennials.
A Gen-Xer is someone born between 1965 and 1980. They were first named “baby-busters” because this generation was having fewer children due to more women entering the workforce along with the wide distribution of the pill. Baby Busters started their lives before the electronic age surged. Meaning, they had record players, rotary dial phones, and got their TV from an antenna on the roof. Most cars had manual transmissions and if you missed your favorite song on the radio, you had to wait around until they played it again. The name was switched to Gen-X because when they arrived into the workforce in fewer numbers, they seemed out of place as most key positions were already taken by the boomers. Because of the struggles trying to make it in the workforce and spikes of high unemployment during that time, they seemed to have time on their hands to re-invent themselves. They are the ones who have had a huge influence on technology and the first internet generation. Their children are known as “Millennials”.
Millennials are a generation that have grown up only knowing the digital age and are known as digital natives. They haven’t had the joy of trying to wrap their heads around technology as a lot of it had already advanced greatly before they were old enough to notice. Growing up they saw their parents having to deal with stock market crashes and lending fraud. Their trust in the banking and financial systems is a lot lower and this is having a great impact on their investments as they seem to have more faith in digital banking technology.
The Great Transfer Of Wealth
As stated before, it is estimated that over 60 Trillion dollars is being transferred to the Gen-Xers and Millennials. A survey of Millennials (people between 18- 35) found that 25% of them would rather own Bitcoin than traditional stocks as reported by Blockchain Capital. Three times as many people in this group said they were familiar with Bitcoin than people 65 and older. It is estimated that nearly 25% of Millennials say they own some bitcoin and as the years continue to pass, larger numbers of Millennials will be injected into the investment pool. The website Mode used February 2020 as a baseline and tracked Bitcoin investments across the Gen-X and Millenial generations and found a 2.24% increase in the first month. Overall, from February through May, they recorded an 8.88% increase in Bitcoin purchases from these two generations, and Google Trends data has shown a 50% rise in searches for “Where to invest”. Mode Banking chief products officer Janis Legler stated,
“Bitcoin is becoming popular among all age groups and is being endorsed by more mainstream investors every week. We expected Millennials to continue buying into cryptocurrencies, but to see more experienced investors also become increasingly interested in Bitcoin is extremely promising for the growth of the industry.”
The new generations seem to understand that the current money system is unfair and have decided to avoid these disadvantages through Bitcoin and other cryptocurrencies.