Bitcoin could skyrocket in the coming years, climbing more than 1,000% to $50,000 as Millennials inherit the wealth of Baby Boomers, according to Ryan Selkis, founder & CEO of cryptocurrency research firm Messari.
Over the next few decades, Millennials stand to receive trillions of dollars through the "Great Wealth Transfer," he noted in a tweet.
Many expect this demographic to receive $30 trillion, he stated, and if only 1% of this sum ($300 billion) goes into digital currencies, "crypto will be a multi-trillion dollar asset class."
"That's the conservative case for $50k+ bitcoin," Selkis stated in the tweet.
This prediction could certainly materialize, stated Mati Greenspan, senior market analyst for social trading platform eToro.
"The current market cap of bitcoin is around $73 billion," he emphasized.
"If an additional $300 billion were to flow into bitcoin than it could easily increase the total market cap by 10 to 20 times the incoming capital."
However, several analysts voiced their doubts about the Messari founder's prediction.
"The wealth transfer effect has been discussed for almost two decades now," emphasized Jeff Dorman, chief investment officer of asset manager Arca Funds.
"The only thing we know for certain is that many Baby Boomers achieved great wealth and will leave money to their relatives when they pass away," he stated.
"How the inheritance is spent and invested is completely uncertain."
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, pointed to another potential problem in Selkis' forecast.
"I understand this anticipated transfer of wealth (over the next 25 years) is estimated to be north of $65 trillion," he stated, pointing to figures included in a CNBC article published earlier this year.
"If 1% of this, $650B moves into crypto, the asset class as a whole is likely to be in trillions, but that does not necessarily mean Bitcoin will be $50k," emphasized DiPasquale.
"Given how this wealth transfer is going to take place over the next two and a half decades, a lot also depends on how the crypto space develops, and more importantly, how Bitcoin scales and adoption grows," he stated.
"If Bitcoin manages to stay at the forefront by then, I would not be surprised if it goes well over $50k in price in the next 25 years," DiPasquale concluded.
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