Millennials actually prefer to store Bitcoin over gold as a safe haven asset or safe investment asset, according to the results of a recent global survey.
A survey conducted by one of the independent financial advisory companies and fintech, deVere Group. And the survey results were released when the Bitcoin price shot up to the US $ 19,864.
More than two-thirds (67%) of the 700+ millennial clients surveyed said they think Bitcoin competes better with gold as a safe haven asset.
Coming from North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia, and Latin America, the respondents to this survey were the generation born between 1980 and 1996.
Commenting on the findings of this survey, CEO and Founder, deVere Group, Nigel Green said that from the time of Ancient Egypt, gold has always had a high value and has long been considered a major safe haven.
“Gold has always been a reliable asset in times of political, social, and economic uncertainty because its value does not change or increases when other assets decline in value. Gold thus allows investors to reduce their exposure to losses, "Nigel added.
But this survey reveals that Bitcoin could "abdicate" within a generation as millennial investors and younger, dubbed "digital natives" believe Bitcoin competes better against gold as a safe haven asset.
"Millennials will become an increasingly important market in the next few years, with the largest intergenerational transfer of wealth - predicted to reach more than the US $ 60 trillion - from baby boomers to millennials," continued Nigel Green. Plus, the world is increasingly driven by technology and Cryptocurrency is of course digital.
Another key factor is the historical rate of money printing as central banks around the world attempt to buffer economies that have collapsed from the pandemic. “If you flood the market with extra cash, you are really devaluing the traditional currency, and this, as well as the threat of inflation, concerns a number of investments looking for alternatives.
"On its own, and in line with findings showing that millennials have a preference for Bitcoin over gold, cryptocurrency is poised to gain prominence as a serious safe-haven asset," Nigel explained. Bitcoin is often referred to as "digital gold" because, like the precious metal, Bitcoin is a medium of exchange, account, not sovereign, decentralized, scarce, and stores value.
"Throughout 2020, a year full of financial turmoil, the value of Bitcoin has increased by about 170%," Nigel concluded.
Bitcoin has only been around for about a decade but already accounts for more than 3% of the gold market capitalization of US $ 9 trillion.
"As the world continues to shift towards technology and as millennials become the more dominant party in the world economy, we hope that Bitcoin's role will also be increasingly influential in financial markets, especially in becoming a recession-resistant asset," concluded Nigel Green.
