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Bitcoin is new gold for millennials, Wharton finance professor says

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According to Wharton’s finance professor, Bitcoin (BTC), the world’s most valuable cryptocurrency, has displaced gold as an inflation hedge for youthful investors.

In a CNBC Squawk Box interview on Friday, Wharton School finance professor Jeremy Siegel claimed gold’s performance in 2021 was “disappointing.”

BTC, on the other hand, is rapidly being seen as an inflation hedge among younger investors, according to Siegel:

“Let’s face it, I believe Bitcoin has displaced gold as an inflation hedge in the minds of many younger investors. For the Millennial generation, digital coins are the new gold. I believe that the gold tale is true, and that the younger generation views Bitcoin as a substitute.”

Siegel also pointed out that older generations saw gold skyrocket during the 1970s inflation. “It’s not in favour this time,” he continued.

Gold, which has traditionally been seen as an inflation hedge, failed to fulfil investors’ expectations in 2021, posting its worst year since 2015 and falling approximately 5% to conclude the year at $1,800. Despite enormous price volatility throughout 2021, BTC had risen by roughly 70% by the end of the year.

In October 2021, some notable worldwide investors backed Bitcoin above gold. With Dallas Mavericks owner Mark Cuban claiming that Bitcoin was “better than gold”. Barry Sternlicht, co-founder of Starwood Capital Group, has stated that gold is “worthless”. And that he is keeping Bitcoin since every government is producing large quantities of money.

BTC is becoming a more popular asset against gold. However, many financial and crypto professionals believe it has yet to demonstrate inflation hedge status.

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