When it comes to bitcoin vs gold, two-thirds of Millennials prefer the crypto coin as an investment hedge. DeVere Group, one of the largest independent financial advisory and fintech organizations, reported this eye-opening study at the beginning of December.
The release of these figures coincides with bitcoin’s all-time high of $22,428 today, December 17th, 2020. This figure smokes the previous record set in December 2017.
It also provides plenty of food for thought. Why are Millennials choosing cryptocurrency over physical assets? Read on as we examine what has caused this shift in investment preference.
2 IN 3 MILLENNIALS PREFER TO INVEST IN BITCOIN RATHER THAN GOLD
A majority of millennials prefer bitcoin rather than gold as a safe-haven asset. This global survey should be a warning to all Bankers who are still sticking to their old business model.
Two-thirds (67%) of more than 700 millennials surveyed said that they believe bitcoin competes better against gold as an asset.
Bitcoin vs Gold
Not too long ago, experts touted gold as the ultimate hedge against inflation. Among members of the Baby Boomer generation, it remains popular.
But Millennials don’t share this sentiment. According to 67 percent of the deVere survey respondents, bitcoin is considered the better safe-haven asset.
This remarkable finding shows how far public opinion about digital currency has come. At least among Millennials. They now consider bitcoin a go-to asset, especially in times of economic, social, and political uncertainty.
Millennials have made this calculation based on a belief that the “king of all cryptos” will retain or increase in value, even when other assets fall. Many believe bitcoin now represents the best way to reduce exposure to losses.
This change in thinking also demonstrates how tech-driven our world has become in recent years. We’ve reached a point where digital currencies now have serious value and standing in the market.
Baby Boomers vs Millennials
The shift from gold to bitcoin also belies other truths. A generational shift is taking place. Baby Boomers continue to age, and Millennials are taking their place at the economic helm.
Millennials will become an increasingly vital part of the market. They’ll participate in one of the most significant generational transfers of wealth in history. One involving $60 trillion.
What are other factors motivating Millennials to move towards bitcoin? Living in unprecedented times. Money-printing has spiraled out of control, reaching historic levels as nations prop up their economies.
The pandemic has wrought significant economic harm. As countries continue to boost their economies for the short-haul, they’ll make compromises. Their currencies will suffer the consequences, even as bitcoin continues to grow in value.
To avoid the monster of inflation, Millennials will continue to invest in digital currencies.
The devaluing of fiat currencies and the threat of inflation remain legitimate concerns. Investors have decided they want other options. They’re not afraid to take their chances with cryptos, at least bitcoin.
What’s another vital lesson we can take from this transition? Bitcoin could get dethroned within a generation.
Why? Because a similar set of processes may lead to the next generation of digital investors looking toward other safe-havens.
We don’t have a crystal ball. So, there’s little point in ruminating over the next big generational investment shakeup. Especially since we’re still at the beginning of this one.
Instead, let’s take a closer look at why bitcoin has risen to prominence. Investors in digital currencies often refer to bitcoin as “digital gold.” And Tyler and Cameron Winklevoss, the co-founders of Gemini, call it “gold 2.0.”
Why the allusions to gold? The asset has performed robustly and consistently. At least in terms of the relatively recent timeline for cryptos.
For these reasons, bitcoin now represents a serious hedge asset. Consider this. The coin has increased in value by approximately 170 percent despite the unprecedented financial turbulence of 2020.
Bitcoin is less than ten years old. Yet, it boasts more than three percent of gold’s market cap of $9 trillion.
Again, we don’t have a crystal ball. But one thing remains clear. The world will continue shifting towards tech solutions as Millennials take their place on the financial stage.
As they transition into a dominant financial market position, they’ll continue to demand recession-proof assets. Bitcoin represents the best solution for this generation.
Bitcoin Invest Trends
What’s the takeaway from all of this? Many people have come to an unmistakable realization. Bitcoin currently represents their best defense against devalued currencies and inflation.
It offers the opportunity for returns of 25 to 40 times. What other assets in the world can credibly boast these returns? And all while providing a hedge against inflation.
Bitcoin isn’t an ever-present medium of exchange. Instead, it’s an emergent store of value. Many experts believe it will continue to grow in value, too. Just as we believe in it at iMi Blockchain.
Why? Because it’s easier to transport than gold, more durable, more cost effective, and more useful.
Unlike gold, you can transact in bitcoin. How? By using a crypto debit or credit card, or even your Apple Pay wallet.
Now, imagine trying to buy a cup of coffee in gold coin!
A Bright Future for Bitcoin
Bitcoin may even become a currency. This option has not been taken off the table. Crypto experts like the Winklevoss brothers predict it could go as high as $100,000 or even $500,000. We at iMi Blockchain believe that bitcoin could reach 40,000 USD in 2021 based on our technical analysis.
Yet, the crypto asset will still avoid the fundamental problems associated with other stores of value. Think United States dollar, gold, and oil.
Are you interested in learning more about blockchain and cryptos? Are you unsure where to start?
Blockchain and Cryptocurrency Services
Blockchain technology and cryptocurrencies represent the future. Distributed ledger technology (DLT) will continue to change the way people invest and do business.
Are you interested in learning more about bitcoin vs gold? Do you want to find ways to implement and deploy blockchain in your organization? We have frictionless solutions to help your organization make the transition.
Blockchain technology and cryptos remain catalysts for the future. Don’t let your company get left behind. Book a consultation to see how we can help you leverage integrated solutions to support your company’s changing ecosystem.
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