Wharton finance professor believes Bitcoin is the new gold for young investors

According to Wharton’s finance professor, Bitcoin (BTC), the world’s most valuable cryptocurrency, has replaced gold as a hedge against inflation for young investors.

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

BTC, on the other hand, is becoming more popular among younger investors as an inflation hedge, according to Siegel. He further added, “I think Bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold. Digital coins are the new gold for the Millennials. I think that the story of gold is the fact that the young generation is regarding Bitcoin as the substitute.”

Siegel also pointed out that older generations saw gold skyrocket during the 1970s inflationary period. “This time, it is not in favor,” he continued.

Gold, which has traditionally been seen as an inflation hedge, failed to meet investors’ standards in 2021, having had its worst year since 2015 and falling around 5% to close the year at $1,800. Despite enormous price volatility throughout 2021, BTC had increased by roughly 70% by the end of the year.

Many big names prefer Bitcoin over Gold 

In October 2021, several prominent global investors argued that Bitcoin is “better than gold,” with Dallas Mavericks owner Mark Cuban arguing that Bitcoin was “superior to gold.” Barry Sternlicht, the co-founder of Starwood Capital Group, also stated that gold is “worthless” and that he holds Bitcoin because every government is printing massive amounts of money.

Despite the fact that the king coin is becoming a more popular asset when compared to gold, many financial and crypto experts feel it has yet to show its inflation hedge status.

In November 2021, Kevin O’Leary, Shark Tank star, said that his crypto holdings had crossed his gold holdings amidst MicroStrategy CEO Michael Saylor advising to sell $10 trillion of gold to buy Bitcoin.