The demographic changes taking place in several countries are expected to drive greater adoption of cryptocurrency and blockchain technology, mainly among the millennial and Gen Z populations, according to a new study.
Digital asset trading platform Bitget surveyed more than 255,000 people in 26 countries and found that a decline in the Baby Boomer and Gen X populations could lead to "progress in unlocking solutions that would drive society towards blockchain adoption".
The study said millennials see cryptocurrency as an attractive asset with high yielding potential as they are still in the early stages of building their investment portfolios. This age group has greater familiarity with the internet and digital technology compared with older generations, said the company.
"Cryptocurrency popularity and acceptance varies among different age groups," said Gracy Chen, managing director of Bitget, noting the research found only 8% of Baby Boom respondents currently hold cryptocurrency.
Millennials accounted for the largest share of cryptocurrency ownership at 46%, followed by Gen X (25%) and Gen Z (21%), she said.
"This research allows us to have a better understanding of the needs and preferences among crypto users. It also allows our company to implement a suitable plan to prepare for wider demand in this industry," Ms Chen said.
Bitget expects the influence of the Baby Boom and Gen X cohorts to weaken over the years as they pass away.
"These generations make up 42% of the total population and can only lobby their interests quantitatively," she said.
"The older generation can oppose or hinder the adoption of bills that promote crypto adoption through their wide representation in the government."
The survey found 4% of Baby Boom respondents and 6% of Gen X respondents would choose government representatives based on their attitude towards the regulation of the cryptocurrency market.
On the other hand, 27% of millennials and 36% of Gen Z respondents were willing to vote for candidates with cryptocurrency agendas.
"In 2030, all Gen Z members will be adults. From a statistical point of view, the chances of growth related to the acceptance of cryptocurrencies in the coming years are very high," noted the report.
Even though demographic changes should lead to an increasing acceptance of cryptocurrencies, stalling population growth in many of the countries surveyed may curb this trend.
Bitget forecasts the population growth rate between 2085-2095 could fall below 0.5%.
"Combined with an increase in life expectancy, it is possible there could be a total rejection of cryptocurrencies, blocking innovation and modern technology," said the report.
