Key Takeaways:
- Wharton finance professor claims bitcoin is the new gold for millennials.
- Regardless of the enormous price volatility throughout 2021, BTC had increased by roughly 70% by the end of the year.
According to Wharton’s finance professor, Bitcoin (BTC), the world’s most valuable cryptocurrency, has replaced gold as an inflation hedge for youthful investors.
In a CNBC Squawk Box interview on Friday, Wharton School finance professor Jeremy Siegel remarked that gold’s performance in 2021 was “disappointing.”
BTC, on the other hand, is becoming more popular among younger investors as an inflation hedge, according to Siegel:
“Let’s face it: in the views of many younger investors, Bitcoin has supplanted gold as an inflation hedge.” For Millennials, digital coins have replaced gold. I believe that the gold story is true and that the younger generation sees Bitcoin as a viable alternative.”
Older generations, Siegel pointed out, saw gold skyrocket during the 1970s inflation. “It’s not in our advantage this time,” he added.
Gold, which has traditionally been seen as an inflation hedge, failed to fulfil market expectations in 2021, having had its worst year since 2015, falling approximately 5% to conclude the year at $1,800. Despite large price swings throughout 2021, BTC had a positive year.
Regardless of the enormous price volatility throughout 2021, BTC had increased by roughly 70% by the end of the year.
In October 2021, several major worldwide investors argued that Bitcoin was “better than gold,” including Dallas Mavericks owner Mark Cuban. Barry Sternlicht, a co-founder of Starwood Capital Group, has also stated that gold is “worthless” and that he holds Bitcoin since every government is producing large quantities of money.
Despite the fact that Bitcoin is becoming a more popular asset when compared to gold, many financial and crypto experts feel it has yet to show its inflation hedge status.
