This article was compiled and organized by BlockWeeks
Over the next two decades, the United States will experience the largest generational wealth transfer in human history. Baby Boomers and older generations will pass trillions of dollars in assets to their children, and this group of "digital natives" has investment behavior completely different from their parents—their acceptance of Bitcoin and crypto assets is far higher than that of the previous generation.
$840 Trillion: The Largest Wealth Transfer in History
According to the Federal Reserve's Survey of Consumer Finances, as of the second quarter of 2023, total U.S. household wealth was $146 trillion. Among this, Baby Boomers born in 1964 and earlier, along with older generations, held a combined $95.6 trillion, accounting for about two-thirds of all U.S. wealth, while this group made up less than one-third of the adult population.
In recent years, Millennials have surpassed Baby Boomers in population size, becoming the largest generation in the United States. But despite being larger in population, Millennials and younger generations (including digital natives such as Gen Z) together hold only $8.3 trillion, about 5.7% of total wealth, roughly 11.5 times less than Baby Boomers and older generations, and about 15.5 times less per capita.
Cerulli Associates predicts that the total wealth transferred by 2045 will reach $84.4 trillion, of which $73.6 trillion (87%) will be passed to heirs as inheritance, and the remaining $11.9 trillion (13%) will be donated to charity. Baby Boomers (ages 59–77) will transfer $53 trillion (63% of total transfers), and the "Silent Generation" (over 78) is expected to transfer about $16 trillion (19%), with most of it completed within the next decade. Coldwell Banker estimates that by 2030, Millennials will hold 5 times the wealth they held at the beginning of this decade, mainly from inheritance.
Why Younger Generations Prefer Crypto
Millennials and Gen Z are the first digital natives. Compared with their parents and grandparents, they are more racially diverse, more educated, and more socially conscious. Squeezed by multiple economic recessions, high housing costs, and heavy debt burdens, these younger generations are more open to alternative financial systems and investments (including crypto). Multiple cross-generational crypto adoption rate surveys show that younger generations' crypto adoption or acceptance rate is at least 3 times that of Baby Boomers.
The traditional financial system once benefited Baby Boomers greatly—relatively higher incomes, lower living costs, and years of economic growth. Therefore, research shows they trust the financial system more and tend to maintain the status quo. But many Millennials and younger groups are disappointed with a financial system that has failed to serve them as it served their parents. Especially after the 2008 financial crisis, inflation concerns and declining institutional trust have made these digital-native groups more willing to accept alternative financial systems and investments, more often using purely online digital brokerage apps and robo-advisors, and more preferring technology, ESG, social impact, and alternative investments.
Therefore, the idea of "an alternative financial system not controlled by banks and governments, supported by digitally native currency" resonates with this population. The digital-first, accessible, permissionless, privacy-focused, always-on independent personal finance approach advocated by Bitcoin and crypto aligns highly with the values of younger generations.
Coinbase estimates that about 52 million Americans hold crypto assets (about 1 in every 5 adults), with Millennials having the highest holding rate (45%), followed by Gen Z (39%). Pew's survey results are similar: only 8% of adults over 50 have ever invested in, traded, or used crypto, compared with 25% of those aged 30–49 and 28% of those aged 18–29.
Potential Impact on the Crypto Market
The transfer of wealth to these crypto-friendly groups could significantly boost demand for Bitcoin and other crypto assets. If the "Great Wealth Transfer" happened today, Galaxy estimates that, based on younger generations' higher technology acceptance relative to Baby Boomers, $160 billion to $225 billion in incremental funds would flow into the crypto market. Since most of the wealth held by Baby Boomers and older generations is expected to be passed to younger generations by 2045, this estimate implies that over the next 20 years the crypto market could receive about $20 million to $28 million in incremental buying per day as a result.
Realistic Constraints: Not Everyone Can Wait for an Inheritance
However, the wealth transfer may not solve all the financial problems of Millennials and the next generation. Only a small portion of people are expected to receive an inheritance, and the wealth transfer is very likely not to flow to the low-income groups that need inheritance the most. And for those expecting to inherit wealth, due to longer lifespans, rising medical costs, poor financial planning, changing spending priorities, and reduced benefits, the actual wealth transferred will be lower than expected.
A Coventry study shows that 85% of retirees prioritize their own financial security and health, and more than 75% of retired respondents do not plan to leave any inheritance. Previous intergenerational wealth transfer research (tracking inheritances from 1989 to 2007) also did not bring an obvious "inheritance wave"—wealth transfers accounted for an average of 19% of net worth and continued a downward trend, indicating that the share of inheritances and gifts in household wealth accumulation is gradually declining.
Therefore, Millennials who expect the wealth transfer to immediately bring economic prosperity to repay all debts may need to lower their expectations and make other preparations. Most of the wealth transferred from older generations will not flow to low-income groups. Nevertheless, any inheritance can improve an individual's financial situation and enhance investment capacity, and Bitcoin and other crypto assets may become major beneficiaries.
Demographic Shifts Favor Crypto
Baby Boomers experienced the post-World War II economic boom and reshaped American society as a whole. But there is an obvious generational divide between them and Millennials and younger generations—the latter face greater financial pressure than their parents. In addition to the huge wealth gap, the social values of digital-native generations are also completely different, especially in terms of technology acceptance, social awareness, and institutional trust. Therefore, it is only natural that these groups are more willing to accept alternative financial systems such as Bitcoin and crypto.
As the last batch of Baby Boomers approaches retirement, Millennials will become the main beneficiaries of the "Great Wealth Transfer," with older generations passing on nearly $100 trillion in wealth through inheritance. The Great Wealth Transfer may not solve all the inflated debt problems of younger generations, but it represents a major demographic shift that will empower digital-native populations with a higher propensity to adopt crypto. Over time, as generations change, crypto is expected to see more capital inflows and gain more favorable support on the path to mainstream adoption.
