Global Aging, Rising Wealth Could Boost Bitcoin Demand Through 2100, Fed Analysis Suggests

• Demographics drive asset demand: aging populations increase capital available for investment, raising demand for store-of-value assets.

• Rising global wealth and productivity encourage portfolio diversification into cryptocurrencies and alternative assets.

• Federal Reserve research projects aging could raise asset demand by roughly 200% of GDP between 2024 and 2100.

Bitcoin demand: Aging populations and rising wealth boost crypto adoption — explore portfolio implications and expert perspectives. Read COINOTAG analysis now.

What is the effect of global aging on Bitcoin demand?

Global aging increases long-term Bitcoin demand by concentrating wealth in older cohorts with larger investable assets and longer-term allocation perspectives. The effect is amplified if real interest rates remain low, making alternative stores of value like Bitcoin relatively more attractive.

How does the Federal Reserve view demographic-driven asset demand?

The US Federal Reserve Bank of Kansas City projects that population aging will continue the upward trend in asset demand, with demographic shifts potentially raising asset demand by an additional 200% of GDP between 2024 and 2100. This projection suggests a structural increase in demand for long-duration and alternative assets, which can pressure real interest rates lower.

Global aging and rising wealth could boost demand for assets like Bitcoin, with the Fed projecting stronger investment growth through 2100.

Global demographic shifts and rising wealth could power cryptocurrency adoption and asset demand well into the next century. Front-loaded capital in older cohorts, combined with greater productivity, is likely to increase overall demand for financial assets, including cryptocurrencies such as Bitcoin.

Demand for global assets, including cryptocurrencies, is expected to be driven by an aging global population and increased productivity worldwide, resulting in an older population with more capital to invest. This dynamic favors assets perceived as scarcity stores of value and long-duration holdings.

This dynamic will drive asset demand until the year 2100, according to the US Federal Reserve Bank of Kansas City. “For asset demand, population aging means that the upward trend from recent decades will continue,” a research report published on Aug. 25 said.

“Using demographic projections to extend our historical analysis, we project that aging will raise asset demand by an additional 200% of GDP between 2024 and 2100.” The report also noted that persistent increases in asset demand could imply a continued decline in real interest rates, improving the investment case for alternatives such as Bitcoin.

Source: Kansascityfed.org

Rising wealth is a second structural force. Analysts and industry executives say higher household wealth supports greater risk tolerance and broader portfolio diversification into newer asset classes. Institutional product development — such as spot ETFs and regulated custody — further lowers barriers to entry for older, risk-averse investors.

Why might older investors value Bitcoin like gold over the next 75 years?

While cryptocurrencies remain volatile, regulatory clarity and institutionalization can shift perception. Gracy Chen, CEO of cryptocurrency exchange Bitget, argued that with clearer rules and government engagement, the aging cohort may eventually view Bitcoin similarly to gold: a scarce, digitally native store of value.

Industry data shows adoption is already moving beyond younger cohorts. Triple-A reported that 34% of global cryptocurrency holders were aged between 24 and 35 as of December 2024, and institutional allocations to crypto have increased since late 2024. These trends suggest a broadening investor base that could include older demographics as products and regulation mature.

Crypto investor asset allocation. Source: Bybit Research

Bitcoin accounted for one-third, or 30.95%, of total assets in investor portfolios as of May, up from 25.4% in November 2024. Greater allocation snapshots reflect both retail enthusiasm and growing institutional exposure.

How will rising wealth change investor behavior toward crypto?

Analysts at cryptocurrency exchange Bitfinex noted that increasing personal wealth tends to increase diversification into newer assets. As wealth accumulates, investors with longer horizons can tolerate crypto volatility and allocate a portion of portfolios to digital assets for potential upside and uncorrelated returns.

Younger, tech-savvy investors remain most inclined toward altcoins and emerging crypto projects. Over time, as households age and regulatory frameworks solidify, demand could shift toward perceived stores of value like Bitcoin, while a segment continues to pursue higher-risk, higher-reward crypto opportunities.

Frequently Asked Questions

How much could asset demand rise due to aging?

Federal Reserve Bank of Kansas City’s analysis projects aging could raise asset demand by roughly 200% of GDP between 2024 and 2100, a structural shift that supports long-duration and alternative asset demand.

Who currently holds most cryptocurrency assets?

As of December 2024, 34% of global crypto holders were aged 24–35, showing strong younger adoption. Institutional and older investor participation has been increasing with new regulated products and clearer policy signals.

What should investors consider when allocating to crypto?

Consider time horizon, diversification, regulatory developments, and risk tolerance. Use small strategic allocations for long-duration exposure and maintain liquidity for shorter-term needs.

Key Takeaways

• Demographics matter: Aging populations concentrate investable wealth, lifting demand for financial assets.
• Wealth and regulation: Rising wealth plus regulatory clarity can broaden crypto adoption to older cohorts.
• Portfolio action: Investors may allocate a small strategic percentage to Bitcoin as a long-duration store of value while maintaining diversification.

Conclusion

Global aging and rising wealth create a multi-decade tailwind for Bitcoin demand and broader crypto adoption. As real interest rates adjust and regulation matures, older investors may incorporate cryptocurrencies into diversified portfolios. Monitor demographic research, regulatory updates, and institutional product launches to inform allocation decisions. COINOTAG will continue tracking these structural shifts.

Published by COINOTAG • Updated: 2025-10-05