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According to a Wharton finance expert, bitcoin is the new gold for millennials.
According to Wharton’s finance professor, Bitcoin (BTC), the world’s most valuable cryptocurrency, has supplanted gold as an inflation hedge for youthful investors.
Wharton School finance professor Jeremy Siegel stated in a CNBC Squawk Box interview on Friday that gold’s performance in 2021 was “disappointing.”
BTC, on the other hand, is becoming more popular as an inflation hedge among younger investors, according to Siegel:
“Let’s face the fact, I think Bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold. Digital coins are the new gold for the Millennials. I think that the story of gold is a fact that the young generation is regarding Bitcoin as the substitute.”
Siegel also recalled how older generations saw gold skyrocket during the 1970s inflation. “This time around, it’s not in our advantage,” he continued.
Gold, which has typically emerged as an asset class that provides a buffer against inflation, failed to match investors’ expectations in 2021, having its worst year since 2015 and falling by 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.
