Throughout history, housing has been a fundamental commodity, akin to nests for animals. People built their own homes when they couldn't afford to buy one. However, in recent decades, the perception of housing has shifted. The boomer generation and subsequent generations turned housing into an investment, leading to soaring prices and unaffordability for many. This phenomenon has resulted in a significant wealth gap between boomers and younger generations.
Every generation aspires to create its own generational wealth, just as boomers did with the real estate bubble. However, millennials and post-millennials have faced barriers to entry in traditional markets like real estate and energy, which are now being regulated due to climate concerns. In response, millennials have embraced Bitcoin, a decentralized digital currency that aligns with their interests. Bitcoin's complexity and potential for exponential growth make it less understood by older generations, creating an environment ripe for a generational bubble among millennials and post-millennials.
This dynamic is evidenced by the regulatory landscape surrounding Bitcoin. As a novel form of wealth creation, Bitcoin challenges the current holders of wealth, who are predominantly boomers. Consequently, the older generation has taken steps to regulate and control the cryptocurrency ecosystem, driving entities like Binance out of the US and increasingly excluding them from the Western world. The boomers have temporarily won this round by suppressing the cryptocurrency market.
However, this victory is likely short-lived. As the decade progresses, the boomers will retire, and younger generations will assume positions of power and influence. They will demand their fair share of the wealth from the aging boomers, ultimately forcing them to relinquish it. This shift will likely lead to the final pop of the real estate bubble, as younger generations reshape the financial landscape and drive a resurgence of the Bitcoin finance bubble.
This decade is a defining period of the 21st century, poised to shape the world of the 2030s in profound ways. The transformation will be dramatic, altering the financial and generational dynamics that have long been established.