Over the next 10 years, there will be a significant transfer of wealth and assets from the silent generation and baby boomers to millennials, making them the wealthiest demographic in history. This economic transition is due, in large part, to the aging of older generations and the natural succession of their assets. Before continuing, it is crucial to clarify that the silent generation and baby boomers They include people between 56 and 96 years old. On the other hand, millennials are those who are currently between 27 and 42 years old. In the middle are the It is estimated that these older generations will leave assets worth $90 billion to millennials wealthy only in the United States, according to a study by the Knight Frank agency. Another study indicates that members of the millennial generation are more likely to own cryptocurrencies. Currently, this sector invests 22% of its funds in cryptocurrencies and 8% in non-fungible tokens (NFT). In other words, 1 in 5 American adults under the age of 42 own cryptocurrency, according to Policygenius, a digital services company. In the following table you can see the percentage distribution of investments of various generations. In addition to cryptocurrencies, there are also bonds, stocks and real estate, among others.
Distribution of investments by generation. Source: Policygenius. Likewise, in the case of Generation Z, which includes people between 18 and 26 years old, 20% invest in cryptocurrencies and 9% in NFTs. Although to a lesser extent, older generations also invest in crypto assets, with rates of between 10% and 5%. According to the level of adoption and expansion that digital assets such as bitcoin (BTC) have currently had, it is likely that, in 10 years, it will be a much more consolidated currency, whose presence will be more present in the investors' portfolio. This becomes relevant considering that millennials (the generation with the greatest investment in cryptocurrencies) will be the ones that «take control» of the world's wealth at that time. An example of this is the growing progress of bitcoin spot ETFs in the United States. A financial tool that has been successful in just five months of having debuted on the stock market and allows investing in the asset, as reported by BitcoinDynamic. The influx of institutional capital into ETFs not only brings large sums of money into the market, but can also increase confidence in bitcoin as a legitimate and valuable asset going forward. This additional legitimacy can attract even more investorsboth institutional and retail, among which are millennials.
Millennials had an important post-pandemic economic recovery
Younger Americans are the main beneficiaries of the strong post-pandemic economic recovery, experiencing low unemployment rates and rapid wage growth. “These advances in the labor market have helped fuel historic growth in wealth among young Americans,” according to the Center for American Progress. In millennial homes, Inflation-adjusted wealth doubled between 2019 and 2023, increasing by 101%. This rapid increase occurred during and after the COVID-19 pandemic-induced recession. Unlike millennials, Previous generations did not experience similar increases in wealth during and after recessions when they were of a similar age. This can explain why generation Millennials “weathered the pandemic recession much better financially and with an improved outlook for financial security compared to, for example, baby boomers,” the report highlights.