Gold makes way for Bitcoin

Millennials are turning their backs on gold and buying Bitcoin as a defensive play. A poll undertaken by deVere Group, which surveyed over 700 millennials in North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia and Latin America, found that more than two-thirds (67%) view Bitcoin as a better safehaven asset than gold.

Bitcoin has soared since the onset of the pandemic; at the time of writing it was up by about 535%.

“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,” says deVere CEO Nigel Green.

“But, as this survey reveals, gold could be dethroned within a generation as younger investors, who are so-called ‘digital natives’, believe it competes better against gold as a safe-haven asset.”

Add to this the role central banks are playing in devaluating traditional fiat currency.

“Another key factor is the historic levels of money printing, as central banks around the world attempt to prop up their economies following the fallout from the pandemic,” says Green. “If you are flooding the market with extra money, then in fact you are devaluing traditional currencies – this, and the threat of inflation, are legitimate concerns to a growing number of investors, who are seeking alternatives.

The trend shows no signs of slowing anytime soon.

“As the world continues to shift towards tech and as millennials become a more dominant part of the economy, we should expect Bitcoin to also take an increasingly influential role, especially in regard to being a ‘recession-proof’ asset.”