Millennials demonstrate clear preference for Bitcoin as a value reserve asset
Millennials prefer Bitcoin to gold as a safe haven asset, revealed a new global search one of the largest independent financial advisory organizations in the world.
The results of the survey conducted by the deVere Group come in the week when the price of Bitcoin, the largest and original cryptocurrency in the world, reached a historic peak this week, reaching $ 19,864. This only beats the previous price record, set in December 2017.
More than two-thirds (67%) of the more than 700 millennial generation customers surveyed said they think Bitcoin competes better with gold as a safe-haven asset.
Respondents are customers who currently reside in North America, the United Kingdom, Asia, Africa, the Middle East, East Asia, Australasia and Latin America, all born between 1980 and 1996.
On the findings, Nigel Green, CEO and founder of the deVere Group, said:
“From Ancient Egypt onwards, gold has always been of immense value and has long been revered as the ultimate safe haven. It has always been an indispensable asset in times of political, social and economic uncertainty, as it is expected to retain its value or even grow when other assets fall, thus allowing investors to reduce their exposure to losses.
But, as this research reveals, Bitcoin can be dethroned within a generation, as the millennium generation and younger investors, called ‘digital natives’, believe that it competes better with gold as a port- safe.”
According to Green, the millennial generation is expected to become an increasingly important player in the market in the coming years, with the greatest transfer of wealth of all generations – estimated at more than $ 60 trillion – from baby boomers to the millennial generation occurring. .
The party of money printing
Another key factor highlighted by the CEO of Grupo deVere is the historical levels of money printing as central banks around the world try to sustain their economies after the consequences of the pandemic.
If you are flooding the market with extra cash, then you are actually devaluing traditional currencies – and this, together with the threat of inflation, are legitimate concerns for an increasing number of investors looking for alternatives.
“As such, and in line with the findings that show millennials have a preference for Bitcoin over gold, cryptocurrency is set to stand out as a class of safe haven assets,” said Green.
Bitcoin is often referred to as “digital gold” because, like the precious metal, it is a medium of exchange, a unit of account, non-sovereign, decentralized, scarce and a store of value.
Mr. Green concludes:
“During 2020, a year of unprecedented financial turmoil, Bitcoin’s value increased by about 170%. Bitcoin has been around for just over a decade, but already accounts for more than 3% of the $ 9 trillion market value of gold.
As the world continues to shift to technology and the millennial generation becomes a more dominant part of the world economy, we should expect Bitcoin to also play an increasingly influential role in the financial markets, especially with regard to being an asset ‘ Recession-proof ‘. “