The steady rise in demand for crypto in the 2020s
Charles Schwab, one of the largest US brokers, has published a report which shows that Grayscale Bitcoin Trust is one of the top 5 equity holdings of US millennials. In fact, Bitcoin is more popular than Microsoft, Netflix or Berkshire Hathaway in this age group (24 to 39 years old). Millennials are still in the early stages of their business careers and will earn substantially more money in the coming decade compared to today. It also means they will have much more investable capital, and as their awareness of crypto grows, so will their investments into cryptocurrencies.
The crypto infrastructure for institutional investors is also expanding at a rapid pace with the expectation that this trend will continue in the coming years. As large investors are getting more familiar with Bitcoin and other cryptocurrencies, more will start investing in this asset class. State Street, one of US largest banks, surveyed over 100 asset managers, and 38% stated that they plan to invest more into cryptocurrencies in 2020.
On the other side, there will be three Bitcoin halvings in the 2020s, which will gradually reduce its supply. In the next decade, we can expect a significant shift in Bitcoin supply and demand dynamics, and I believe this will have a considerable positive effect on the price of Bitcoin and other cryptocurrencies.