CMC News

#Bitcoin Could Hit 200% Demand Surge by 2100, Fed Report Shows

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 $BTC.

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 $BTC 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.

$BTC 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.