March 28, 2024

Distrust of banks will ensure the influx of investments in cryptocurrency

Distrust of banks will ensure the influx of investments in cryptocurrency

Today's Baby Boomers have a lot of mistrust in Bitcoin as an investment, as they generally don't understandtechnology. However, they are followed by millennials that have grown on technology and are ready to inherit trillions of dollars of baby boomers to invest in bitcoins.

Statistics show that over the next30 years $60 trillion. of older generations will be transferred to millennials. Baby boomers were born in 1946 — 1964, so approximately 10,000 of them turn 65 every day.

Ikigai fund manager Travis Kling wondered:

“10,000 baby boomers turn 65 every day. Approximately $ 60 trillion. wealth will be transferred from them over the next 30 years. What do you think we're going to? ”

Baby boomers, as a rule, are old-school investors who prefer blue-chip stocks and goods, trying not to take risks.

This is evidenced by frequent baby boomer tweets.on cryptocurrency Twitter that attacks Bitcoin at an opportunity. They do not want to understand technology, and many of them have already earned millions and even billions. However, a generational paradigm shift is about to happen.

Mass distrust of banks

The global economy is in a difficult position -so it was before coronavirus, which put the world on high alert. Booms and busts in the economy are cyclical, and the last major downturn was in 2008.

Then the housing markets began to fall, and banks continued to lend excessively, which allowed people to take huge loans that exceed the value of their property by more than 100%.

At the same time, banks engaged in tradeprofitable mortgage securities, selling them to investors. Financial institutions around the world — mutual funds, corporate assets, and pension funds — all owned these securities.

Banks needed more and more mortgages, and they often lend to insolvent people. The bubble eventually burst. And to say that banks are capable of causing a crisis is to say nothing.

Millennials were born between 1981 and 1996., and therefore many of them have vivid memories of this global economic crisis. Many of them came of age and began to work, faced with the peak of the recession, and now they are burdened with debts.

That is why a massive mistrust of the banking system that caused this collapse is widespread among this population.

Satoshi Nakamoto spoke about the distrust of the banking system in the whitepaper of bitcoin:

“The central bank needs trust so as not tospoil the attitude to their currency, however, in the history of fiat currencies there have been many examples of violations of such trust. Banks want to be trusted with money for storage. However, they translate them into electronic form and borrow, creating credit bubbles, and keeping only small reserves. ”

Naturally, a significant portion of wealthbaby boomers, when it passes to the younger generation, will not go to the banking system or traditional assets, but to those technological assets that you can trust, especially in bitcoin.

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