Curious where the next cryptocurrency investors are going to come from?

in crypto •  3 months ago

The popular theme is to say crypto's next investors will be institutions, but there is another group that could be equally as impactful...

Who might I be referring to you might ask?

I am talking about millennials!

Right now, crypto investors are predominantly made up of retail millennials.

A millennial is defined as anyone born from about 1980 to about 2000. Give or take a few years depending on who you talk to.

Retail investors are defined as non professional investors, people investing their own funds.

Which means the vast majority of crypto investors are young (between about 18-38) and are investing their own capital, as opposed to a fund, endowment, or pension.

A good thing or a bad thing?

An investing market with that kind of makeup has its positives and negatives. One of the main negatives being that it tends to be rather skittish, responding to whatever the latest headline reads.

Whereas institutional investors tend to be more long term focused and less likely to react to day to day fluctuations.

However, one of the main positives for crytpo is that this millennial age group is about to have a lot more investable income!

Check this out:

(Source: https://twitter.com/TuurDemeester/status/1009685022993985536)

Millennials currently make up roughly 45% of the global adult population.

That is a rather large percentage, but up until just recently they haven't accounted for much of the total adult disposable income.

That is about to change.

Check out this chart from Fundstrat Global Advisors:

(Source: https://twitter.com/TuurDemeester/status/1009685022993985536)

Based on a 9% annual growth rate, 10 years from now millennials in the US are expected to have roughly $7 trillion dollars of disposable income.

That is more than double the current estimate of roughly $3 trillion.

That 10 year number is especially significant considering it is projected to be the first time that millennials capture the largest share of income ever.

They would be taking the mantle currently held by the Baby Boomer generation.

Given the fact that millennials are the primary crypto investors, and given the fact that they are set to capture the majority of the global income over the next decade, where do you suppose some of their disposable income might go?

Hmm...

I have a guess...

Stay informed my friends.

Image Source:

http://sugarlandtaxservice.com/millennials-in-the-sugar-land-workplace/

Follow me: @jrcornel

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We’ll take institutional money now and Millennial money later. Both should result in a growth spurt. 💰🤑💰

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Works for me.

I heard someone say one time that most Bitcoin owners are not yet even born, which is to say that crypto markets are only beginning, and BTC and crypto will be around for a very long time. To me that means long term this market will thrive, which is of course very exciting.

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That is very interesting. If that is true, we are probably going to be very wealthy when we retire. If bitcoin is still around when those not yet born are going to be buying it, it's got to be worth a lot more than the current price. In my opinion BTC is almost a binary bet. It will either be worth a ton or nothing.

Millennial incomes have to be growing fast as they get out of college, get their first jobs and first promotions. Institutions seem like they need 2-3 years to get their act together. I expect the foundations for institutions to be laued from 2018-2019 and then institutions to enter in 2020 around the halfing. Hopefully we see Eth futures and a bitcoin etf this year. Well also have zcash trust(sept), Eth (dec) with bch Xrp and ltc (march) and whatever else grayscale comes up with next year.

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Yes that is true. The infrastructure is still being built.

Crypto coin No1 business in the future

maybe nearly 45% of the population but possessing tremendously less % wise in capital

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Over the next decade they will be the highest earners on the planet.

millenials 45% of global adults! wow, that is fascinating and scary ,, how history tumbles along, and with ever growing population ...

the future, difficult to predict is

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Haha, why scary?

Not surprising at all. We have an investment group here in a college town, and 90% of them are Millenials - you can guess what investment we spend most of our time on.

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I'm thinking municipal bonds?! :)

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It is also good that they are younger, means there is more of a future in it.

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Yes good point, they aren't going anywhere.

What you say sounds quite logical as these guys are much more computer literate, they understand the newer technology better and is more open to new ways of doing things, let the crypto boom begin!!

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Haha yes we are :)

Wow ,I didn't realize the Millennials are to have that much Spending power in the next decade or so. Very interesting. Thanks for sharing this @jrcornel

I think you are right and Millennial income will be a huge part in crypto's next stage but I also think institutional money will help everyone to feel more confident.

I am not necessarily surprised about this though... There was so much blind money thrown at ICOs at the end of 2017 at the height of the market and when they were released everyone pulled their money out and dumped it. Those billions of dollars (I believe) had a huge role in what happened to the market.

So many people thought the market could never come down and they were just tossing money into every project they could without reading or doing research about what they were... Billions were invested into ICOs and most of them weren't great...

Millennial income and institutional money will hopefully help us get out of this hole and turn everything around! I think it is just a matter of time! :)