Bitcoin is new gold for millennials, Wharton finance professor says

According to Wharton’s finance professor, Bitcoin (BTC), which is the most valuable cryptocurrency in the world, has replaced gold for young investors as an inflation hedge.

Gold’s performance in 2021 was “disapointing”, Wharton School finance professor Jeremy Siegel stated in a CNBC Squawk Box interview on Friday.

Siegel stated that BTC is becoming a popular inflation hedge for younger investors.

Let’s face it, Bitcoin has taken over the role of an inflation hedge for many younger investors. Digital coins are the future of gold for Millennials. The story of gold is not a myth. I believe that the younger generation sees Bitcoin as a substitute.

Siegel reminded us that the inflation of 1970s saw gold rise and older generations had witnessed it. He added, “This time it is not in favour.”

The asset class gold, traditionally seen as an inflation hedge, did not meet investors’ expectations in 2021. It had its worst year since 2015, and dropped around 5% to $1,800. BTC surged 70% in 2021 despite massive price fluctuations.

Related: More billionaires turn to crypto because of fiat inflation fears

Many prominent investors worldwide supported Bitcoin over gold in 2021. Mark Cuban, owner of the Dallas Mavericks, argued that Bitcoin was “better” than gold in October 2021. Barry Sternlicht, co-founder of Starwood Capital Group, said that gold is actually worthless and that he holds BTC because all governments are printing large amounts of money.

However, despite BTC being a more popular asset than gold, many crypto and financial experts believe it has yet to prove its inflation hedge status.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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