Bitcoin’s $5,000 breakout sparked massive debates and predictions about whether this surge was the coin “bottoming out,” the true reason for this climb and what will cause the next bull run.
Ryan Selkis, Founder of the virtual currency research firm Messari Crypto, is in the news after he claimed that Bitcoin could reach $50,000 in the future. This surge will not be caused by a publicly traded BTC product, he said. Instead, millennials will fuel this growth.
Millennials are the growing demographic that are increasingly embracing cryptocurrencies, with a recent survey by eToro indicating that 43 percent of millennial traders trusted crypto exchanges more than the US stock market. Selkis claimed that a “great wealth transfer” could propel Bitcoin’s price ten times its current valuation.
Selkis said that his “conservative” prediction was that Bitcoin will reach $50,000 and the collective cryptocurrency market will become a “multi-trillion dollar asset class.” It should be noted, however, that this prediction was made prior to the massive 15 percent Bitcoin price hike.
His tweet read,
“There’s a $30 trillion “great wealth transfer” expected in the next 20+ years (millennials inheriting money from their parents). If 1% of that goes into cryptocurrencies, crypto will be a multi-trillion dollar asset class. That’s the conservative case for $50k+ bitcoin.”
As baby boomers transfer their wealth to millennials and the latter invest 1 percent of the same into the virtual currency market, the market could see a massive rise. According to estimates, $30 trillion could be passed down between the generations, leading to $300 billion flowing to the coin market, almost double the current valuation of the collective market.
Mati Greenspan, a senior market analyst at eToro, agreed with Selkis’ prediction. Interestingly, a day prior to the BTC breakout, Greenspan predicted that if the king coin surged past its 200-day moving average of around $4,600, a bull-run could be on the horizon. With reference to the “great wealth transfer,” the eToro analyst stated,
“If an additional $300 billion were to flow into bitcoin than it could easily increase the total market cap by 10 to 20 times the incoming capital.”
However, some analysts do not peg their hopes on millennials as much as Selkis and Greenspan do. The transfer of wealth into assets like cryptocurrencies depends on the choice of the investor, it cannot be certain that millennials would invest in virtual currencies.
Others pointed out the variance of the incoming anticipated investment, adding that Bitcoin might not receive the lion’s share. With the domination of the altcoin market, Bitcoin saw its grip on the collective market loosen to just above 50 percent. Hence, despite the unlikelihood of BTC reaching $50,000, Bitcoin as an asset class reaching the trillion-dollar valuation, could be a reality.
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