There’s no denying that cryptocurrency is the newest form of gold to millennials, according to a recent article by The Wharton School. This new paradigm can impact financial regulations and institutions as well as create an entirely different economic system.
Jeremy Siegel is a finance professor at Wharton University. He believes that Bitcoin is the new gold for millennials. This article discusses his thoughts on the topic.
According to Wharton’s finance professor, Bitcoin (BTC), the world’s most valuable cryptocurrency, has supplanted 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, I believe Bitcoin has supplanted gold as an inflation hedge in the eyes of many younger investors.” For Millennials, digital currencies are the new gold. I believe that the gold tale is true, and that the younger generation sees Bitcoin as a replacement.”
Siegel also pointed out that older generations saw gold skyrocket during the 1970s inflationary period. “This time, the odds are stacked against us,” he continued.
Gold, which has historically been seen as an inflation hedge, failed to fulfill investors’ expectations in 2021, having had its worst year since 2015 and falling approximately 5% to conclude the year at $1,800. Despite enormous price volatility during 2021, BTC had increased by roughly 70% by the end of the year.
Concerns about fiat currency inflation are prompting more billionaires to resort to cryptocurrency.
In October 2021, some notable worldwide investors said that Bitcoin was “better than gold,” with Dallas Mavericks owner Mark Cuban stating that Bitcoin was “better than gold.” Barry Sternlicht, co-founder of Starwood Capital Group, has said that gold is “worthless” and that he holds Bitcoin since every government is producing large sums 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.
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