Really interesting presentation from Fundstrat on the economics of Cryptocurrencies. Millennials will lead the way.

Millennials constitute people that are born between 1981 and 2000. That’s 96 million people, the largest generation in history, dwarfing baby boomers (80 million) and GenX (65.8 million).

Millennials don’t trust banks, in fact 92% of them don’t trust banks. In general they don’t believe in centralized systems, and they shouldn’t because centralized systems get hacked all the time. Recently, the Malaysian central bank wired $50 million to hacker, not realizing it was fake entity.So we know that centralized systems aren’t necessarily working well in a native digital world. Since monetary systems are reliant on trust, lets take a look at what that trust looks like. This peer researched survey, “do you trust the government to do the right thing”, shows lowest levels of trust in 50 years. Never has the average person trusted the US government less than today.

But this issue is global…

This same survey question was asked outside the United States with the results shown below.

Unsurprisingly, the countries where people’s trust in government is less than the United States (shaded area below red line) are the countries where cryptocurrencies are flourishing most.

Now, back to millennials. Every generation sees innovation, new tech replace old tech. However, now days, that innovation is mostly digital. Facebook, Uber, Airbnb, Instagram…all of these are digital products and services, all built on the internet.

This new generation is the first one to grow up in a digital world, and with that comes an understanding and comfort with digital products. Digital assets will come naturally to them. The average millennial is 26 and they are now just entering two critical financial phases, the “first home buying” and “investment” period of their lives. To put this generation in perspective, when Boomers reached this age they bought equities, and we saw a huge stock market boom.

The Cryptocurrency and Bitcoin timeline coincides with the first Millennials entering the “investment phase” of their life. We also know that they have a strong distrust in government and centralized networks. Add that to the fact millennials grew up in a digital world with digital products….digital assets, especially one’s focusing on being a store of value or “digital gold” AKA Bitcoin, could be next.

Crypto is coming.

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Interested in other cool crypto posts….check out What happens when the last Bitcoin is mined?and The Price of Bitcoin vs Cost of Mining.