Baby boomers and retirees embrace cryptocurrency revolution

• Bitcoin grew by a whopping 313% last year and industry experts predict that Bitcoin could touch $100,000 soon.
• A global poll of clients aged over 55 found that 70% have already invested in digital currencies or are planning to do so this year.

It is not just ‘digital native’ younger generations that are embracing Bitcoin and cryptocurrencies but also boomers and retirees, chief executive and founder of one of the world’s largest independent financial advisory and fintech organisation deVere Group said.

Nigel Green said that Bitcoin will continue to dominate the crypto ecosystem, but even within this class, it is recommended to maintain a diversified portfolio to mitigate risks and to seize opportunities.

Last weekend, Bitcoin hit $57,000, which gave it a market capitalisation of more than $1 trillion. In addition, Ethereum, the second-largest cryptocurrency, surged past $2,000 for the first time, giving it at the time a market cap of $226 billion.

This week, the prices have dipped and the Bitcoin market is currently worth around $900 billion.

 “Despite this week’s drops, the Bitcoin price has still soared by almost 360 per cent over the last 12 months, partly fuelled by endorsements made by Tesla billionaire Elon Musk, amongst others, and growing interest from institutional investors,” Green said.

Impressive run

Musk’s recent tweets in support drive the prices of cryptocurrencies up; his recent remark on Twitter ‘BTC & ETH do seem high’ pulled the prices of these digiassets down.

Bitcoin grew by a whopping 313 per cent in 2020 and industry experts predict that Bitcoin could touch $100,000 in the near future.

According to a global poll of clients aged over 55 found that 70 per cent of those surveyed are already invested in digital currencies or are planning to do so this year.

 “This hugely impressive run has captured the attention of people around the world – and not just so-called ‘digital native’ younger generations, as is typically, and somewhat patronisingly, portrayed.

“Boomers and Gen X, it seems, are just as excited about digital currencies, with seven out of 10 already invested in crypto, or will do so soon, according to the poll.

“They too recognise that digital, borderless money is the way forward.”

Seeking out alternatives

Whilst the recent massive social media hype and clickbait headlines are more of a catalyst for millennials and Gen Z to consider investing in the likes of Bitcoin, he said that there are other drivers for older generations.

The over-55 respondents to the survey frequently cited a key factor for their interest in crypto is the historic levels of money-printing as central banks around the world attempt to prop-up their economies following the fallout from the pandemic.

“They’re aware that if you are flooding the market with extra money, then, in fact, you are devaluing traditional currencies – and this, and the threat of inflation, is legitimate concerns, prompting them to seek out alternatives. Besides, Bitcoin’s reputation as ‘digital gold’ was also often highlighted,” he said.

The world’s largest cryptocurrency by market cap is often referred to as ‘digital gold’ because like the precious metal it is a medium of exchange, a unit of account, non-sovereign, decentralised, scarce, and a store of value.

With baby boomers and Gen X, who own most of the world’s wealth, are embracing the cryptocurrency revolution, Green said that prices are expected to increases in the longer-term.