Jeremy Siegel, professor of finance at the University of Pennsylvania, told CNBC’s Squawk Box program on Friday that digital currencies like Bitcoin are the “new gold” for millennials.
In addition, Siegel also commented that many young investors are looking to Bitcoin as an inflation hedge, leaving gold aside. This scenario caused gold to fall by the wayside in 2021.
Being easier to be stored, transported and traded, Bitcoin has been gaining more and more space in the fight against gold, ending another year as the best protection after a 63% appreciation in the period.
Bitcoin is the new gold for young people
Jeremy Siegel frequently appears in interviews on CNBC talking about inflation, in addition, he is also the author of books on financial investments with a long-term focus.
In his most recent interview, the professor at the University of Pennsylvania took the opportunity to talk about the change in the mindset of investors, who now have an asset with indisputable properties.
“Now, about the gold, it has disappointed. But let’s face it, I think Bitcoin, as a protective asset, in the minds of many young investors, has replaced gold. […] Digital coins are the new gold for millennials.”
“Bitcoin as an #inflation hedge in the minds of many of the younger investors has replaced #gold,” says Wharton’s Jeremy Siegel. “Digital coins are the new gold for the millennials.” #btc #bitcoin pic.twitter.com/mxnSfpIhKa
— Squawk Box (@SquawkCNBC) December 31, 2021
Going further, Siegel also draws comparisons between the 1970s, when the gold standard was extinguished, and today’s scenario with inflation hitting records in the United States and other countries.
“We who are older remember the 70s when inflation made the [preço do] gold shoot […] But I think the history of gold is being affected by the fact that new generations are using Bitcoin as a replacement for it.”
Bitcoin has better properties?
The strong popularization of Bitcoin in 2021 made the cryptocurrency one of the most talked about themes of the year among investors of all classes. Some of them were even selling gold to buy bitcoin.
In comparison, while gold has been a store of value that has been used for hundreds of years, Bitcoin offers some additional benefits that are attracting investors.
Bitcoin can be easily split, transported and stored. Furthermore, their markets are open 24/7, so purchases or sales can be made at any time and against any currency in the world, a more liquid market as well.
Finally, Siegel’s vision is so real that a survey by CNBC found that 83% of Generation Y millionaires invest in cryptocurrencies. Going further, many of them wish to have even more exposure to them in the future.