A recent report from the US Federal Reserve Bank of Kansas City highlights the potential impact of demographic changes on the cryptocurrency market. As the global population ages and wealth increases, demand for cryptocurrencies and other assets is projected to surge significantly by the year 2100. The source reports that this trend could reshape investment strategies and market dynamics in the coming decades.
Forecast on Asset Demand
The report, published on August 25, 2024, forecasts that the aging population will drive asset demand up by an additional 200% of GDP from 2024 to 2100. This substantial increase is expected to reshape investment strategies, with a notable shift towards alternative assets such as Bitcoin.
Impact on Investment Strategies
Furthermore, the anticipated rise in asset demand may contribute to a decline in real interest rates, making traditional investments less attractive. As investors seek higher returns, cryptocurrencies could become a more prominent part of diversified portfolios. This reflects a broader trend towards digital assets in the financial landscape.
