The latest reports indicate that millennials prefer bitcoin to gold as a haven asset. A new global survey from one of the biggest independent fintech and financial advisory organizations globally has revealed.
These findings of the poll done by deVere Group come just days after Bitcoin surged to a new all-time high of $19,924. That beats the price that was set previously in 2017.
The survey findings
Over 67% of the 700 millennial clients surveyed acknowledged that bitcoin competes better against gold as a haven asset. These respondents currently reside in the UK, North America, Australasia, Africa, Latin America, East Asia, Asia, and the Middle East. All of them were born between 1980 and 1996.
Nigel Green, deVere Group CEO and founder, commented on the findings:
“From Ancient Egypt onwards gold has always had immense value and has long been revered as the ultimate safe-haven. It’s always been a go-to asset in times of political, social and economic uncertainty as it is expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses. But, as this survey reveals, Bitcoin could be dethroned within a generation as millennials and younger investors, who are so-called ‘digital natives’, believe it competes better against gold as a safe-haven asset.”
Mr. Green believes that millennials are to become increasingly crucial market participants in the coming years. The biggest-ever generational transfer of wealth is predicted to be more than $60 trillion with the baby boomers going out and millennials coming in.
The Money-Printing Saga
Another major factor that was highlighted by the CEO of deVere Group is the historic levels witnessed in the money-printing arena as many central banks globally try to prop-up their economies after the fallout from COVID-19.
As the governments and central banks flood markets with extra money, they are devaluing their fiat currencies. Currency devaluation and the threat of inflation are key issues affecting many investors who are now seeking alternatives. Mr. Green said:
“As such, and in-line with the findings that show that millennials have a preference for Bitcoin over gold, the cryptocurrency is set up for growing prominence as a serious safe-haven asset class.”
Today, bitcoin is often referred to as ‘digital gold’ since it is a medium of exchange just like the precious yellow metal. It is also a unit of account, decentralized, non-sovereign, scarce, and it is also turning into a store of value. These characteristics are attracting more institutional investors who are gradually joining the nascent market resulting in the recent bullish trends seen in 2021.
Mr. Green concluded by saying:
“During 2021, a year of unprecedented financial turbulence, the value of Bitcoin has risen by around 170%. Bitcoin has been around a little more than a decade but already accounts for more than 3% of gold’s $9 trillion market cap. As the world continues to shift towards tech and as millennials become a more dominant part of the world economy, we should expect Bitcoin to also take an increasingly influential role in financial markets, especially in regard to being a ‘recession-proof’ asset.”
