Skip to main content

Market Overview

Millennials Are Twice As Likely To Buy Bitcoin Than Gold As Safe-Haven Investment

Share:
Millennials Are Twice As Likely To Buy Bitcoin Than Gold As Safe-Haven Investment

Unprecedented government stimulus measures, an ongoing global pandemic and a stock market at all-time highs have many investors looking for a safe-haven investment in 2020. The SPDR Gold Trust (NYSE: GLD) has had a great year in 2020, but a new survey by deVere Group has found twice as many younger investors prefer bitcoin to gold as a store of value.

The deVere survey included more than 700 of the company’s millennial clients around the world and found that 67% of them think bitcoin is a superior safe-haven asset to gold.

The GLD fund has outpaced the S&P 500 in 2020, gaining 20.1%. However, the Grayscale Bitcoin Trust (OTC: GBTC) has left gold in the dust this year, gaining 188.5% on the year.

Related Link: The Libra Cryptocurrency Rebrands As 'Diem'

Millennials Trust Tech: Nigel Green, deVere Group CEO and founder, said the survey suggests bitcoin may ultimately dethrone gold as the world’s preferred safe-haven investment.

Green said investors are right to be concerned about central banks around the world flooding the global economies with extra money, and younger investors are increasingly turning to bitcoin to avoid the fallout.

“Bitcoin has been around a little more than a decade, but already accounts for more than 3% of gold’s $9 trillion market cap,” Green said.

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

Benzinga’s Take: One of the best arguments against bitcoin as a safe-haven investment is its extreme pricing volatility. Bitcoin’s overall performance has been great in the past few years, but its value has risen or fallen by at least 72% in each of the past five years, including a 72.6% drop in 2018. The worst year for gold prices in the past five years was 2018, when prices dropped just 0.9% on the year.

 

Related Articles (GLD + GBTC)

View Comments and Join the Discussion!

Posted-In: Bitcoin GoldAnalyst Color Cryptocurrency Commodities Top Stories Markets Analyst Ratings Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com