Kraken and the forecast for a $350,000 bitcoin

Kraken has published a substantial study in which a new forecast for the price of bitcoin is put forward: $350,000 in the long term.

This analysis does not take into account price fluctuations in the short term but instead focuses on the coming decades. 

The key point is the fact that over the years there will be what is called “the most significant wealth transfer in history”, seeing that in the United States alone the Generation X and Millennials will inherit almost $70 trillion from the Baby Boomers generation. 

The fact is that the investment approach of these new generations is substantially different from that of the previous generation, with a much higher proportion dedicated to bitcoin. 

As a result, once the management of assets falls into the hands of the new generations, it is conceivable that a larger portion of these will be allocated to bitcoin. 

The report “Inheriting USDs & Acquiring BTCs” helps to understand precisely how this process could happen, and what impact it could have on the price of bitcoin. In fact, according to Kraken, this large transfer of wealth will fuel the mass adoption of bitcoin as an investment. 

To reach these conclusions, the study analyzes the life cycles of various technologies using historical examples, such as the landline phone or tablet, information about the preferences of consumers of these generations, and the prediction of how wealth will transfer over time. 

In particular, the report predicts that by 2044, the price of bitcoin could reach $350,000, or even exceed it.  

“Assuming a 5% investment allocation and a 2% inheritance tax, by 2044 Gen X and Millennials could invest an estimated $971 billion into Bitcoin as they inherit wealth. World investment could make this figure much higher. Here’s a projection showing the estimated flow of assets as the Baby Boom generation declines and transfers its wealth to Gen X and Millennials. Almost 70% of the total $70 trillion transfer will occur in the next 10 years. Relative to marginal supply, the implied price of Bitcoin in 2044 would be about $350,000 (assuming the $971 billion investment)”.