An aging global population combined with rising wealth levels could fuel cryptocurrency demand well into the next century, according to research from the U.S. Federal Reserve Bank of Kansas City.
The demographic shift will drive asset demand by an additional 200% of GDP between 2024 and 2100, the Kansas City Fed projected in a report published in August. Population aging means the upward trend in asset demand from recent decades will continue its trajectory, potentially benefiting digital assets like Bitcoin.
Lower real interest rates are expected to accompany this demographic transformation. The Fed analysis suggests this environment could boost alternative investments as traditional yields decline, creating favorable conditions for cryptocurrency adoption among older investors with substantial capital.
Gracy Chen, CEO of cryptocurrency exchange Bitget, believes the aging population may come to value Bitcoin as highly as gold within the next 75 years. Growing regulatory clarity and institutional products like ETFs could make digital assets more attractive to older demographics who traditionally favor conservative investments.
Current crypto holders skew young, with 34% aged between 24 and 35 as of December 2024, according to crypto payment company Triple-A. However, maturing regulations and government backing could shift this distribution as the asset class gains legitimacy among older investors.
Bitcoin already represents 30.95% of total assets in investor portfolios as of May, up from 25.4% in November 2024. This growing allocation signals increasing confidence in cryptocurrency as a portfolio component alongside traditional assets.
Bitfinex analysts expect rising global wealth to translate into greater risk appetite and diversification into emerging asset classes. Higher wealth levels typically feed increased demand for crypto, particularly among investors with longer time horizons who can weather volatility.
Younger, tech-savvy investors are positioned to favor altcoins and newer crypto projects given their understanding of technology and higher risk tolerance. The combination of demographic aging and wealth accumulation creates a multi-generational pathway for sustained cryptocurrency adoption through the end of the century.