Impending Economic Crash Threat Could Spark Bitcoin Growth From Millennials As Household Wealth Surges

The current state of the economy is causing analysts to predict that a crash is coming. The household wealth of the United States has reached an all-time high over the $100 trillion mark, which has primarily been a result of increasing value for property and stock options. This trend does not seem sustainable, which analysts believe will be the necessary catalyst to push millennials towards cryptocurrency.

The wealth reached these levels in the middle of September, and it seems like a good development for the market for some people. However, based on the place that the average income has remained for quite some time, it is clear that this kind of high note will not be going for much longer. The investment director of AJ Bell, Russ Mould, said,

“Household net worth cannot sustainably grow this much faster than incomes. Assets have been bid up and at some stage there has to be chance that they correct, just as happened in 2000 and 2007.”

Based on Mould’s observations, the bullish stock market is making history right now, since real estate seems to be increasing in value, while there is no more accumulation of household wealth. The market will remain vulnerable, unless the economy is able to come up with stable income. Mould noted,

“The difference is likely to be accounted for by the surge in the value of financial and other assets — equities, bonds, property and rankly everything from vintage cars to art to wine to baseball cards. And this is one warning that at some stage another collapse in financial markets will sweep around the globe.”

Along with Mould, Nouriel Roubini feels that there will be a financial crisis by 2020 as well. The economist and Stern School professor used the recent behaviors over the last year to support the prediction. Roubini goes as part as to say that there will be a minor correction or a financial crisis, and there is not much of a way to understand anything further.

Bitcoin has notably been a store of value but has not had a direct connection of the market. The decentralized state makes it possible to move around independently, which makes it a perfect alternative for consumers that need to survive the volatility of the market. Despite the lack of a connection, Matt Hogan believes that the network’s decline does not necessarily man that cryptocurrency will usher in a more bullish market.

The vice president of research and development at Bitwise Asset Management was interviewed by Bloomberg, when he said,

“Non-correlation is not the same as inverse correlation so there’s no guarantee that when the market goes down crypto will go up. Over the long term, we think the fundamental drivers of crypto are different from the fundamental driver of equities and other assets, and we would expect the low correlation to persist.”

Since millennials seem to be showing a need for Bitcoin in the industry, it is possible that Bitcoin could rise up as a helpful store of value, much like gold. In fact, there are surveys that indicate that well over one-third of millennials plan to get involved in the industry within the next few years, which is good considering that 80% of American millennials at least have some knowledge about Bitcoin.

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