According to a survey, almost half of Russian retail investors believe that cryptocurrency like Bitcoin (BTC), is a hedging asset that can be linked with stable income.
Investing.com, a financial publication, surveyed 1,000 Russian retail investors to determine the most popular types of alternative investments.
A survey of 1,000 Russian retail investors conducted by Investing.com found that 46% of respondents viewed cryptocurrencies to be a potential asset to protect against financial risk during economic crises.
Russian retail investors prefer crypto over real estate, as only 37% of those surveyed considered real estate to be an effective investment tool.
According to Anastasia Kosheleva (head of Investing.com’s Russian division), real estate was the most popular hedging asset in Russia historically. She pointed out that cryptocurrencies are the most popular investment trend for 2021, surpassing traditional assets like stocks and foreign exchange currencies.
Bitcoin appears to be the most popular alternative investment among many cryptocurrencies. According to Brand Analytics’ big data platform, Bitcoin was the most widely used cryptocurrency in Russia in October. It outperformed coins like Tether (USDT), and Litecoin(LTC) in terms social media mentions.
Russian investors have become increasingly interested in cryptocurrencies in recent years. According to a survey, 77% of Russian investors preferred Bitcoin over gold last year.
The Bank of Russia released a financial stability document last week. It noted Russia’s increasing role in the $2.8 trillion global cryptocurrency market. According to the central bank, Russia is third in the world for the BTC hash rate. It also mentions that Russia is the largest user of Binance cryptocurrency exchange.
Related: Bitcoin is undergoing a major change due to inflationary winds around the globe
Global investors are increasingly turning to cryptocurrencies such as Bitcoin to hedge against financial risk, despite rising inflation and ongoing COVID-19 pandemic.
Goldman Sachs’ head for energy research Damian Courvalin stated that investors are increasingly using crypto to hedge against inflation in addition to traditional assets such as gold. He stated that, “just like we argue silver is the poorman’s gold,” gold could be becoming the poorman’s crypto in mid-November.
Vimal Gor, Pendal Group’s head for alternative duration strategies, had previously argued that cryptocurrencies should not be excluded from new defensive portfolios because government bonds are no longer a good hedge against risk.
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