Wharton Professor: Bitcoin Replaced Gold

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  • Bit­coin is pro­vid­ing bet­ter pro­tec­tion from infla­tion than gold, a Whar­ton finance pro­fes­sor said.
  • Jere­my Siegel added that Bit­coin has replaced gold in the minds of younger investors.
  • The peer-to-peer mon­ey out­per­formed gold by a large mar­gin last year, ris­ing by almost 60% while the met­al lost 5% of its value.

Bit­coin is act­ing as a bet­ter infla­tion hedge than gold and has replaced the met­al in the minds of younger investors, a senior Whar­ton pro­fes­sor said in a Fri­day inter­view with CNBC.

“Let’s face the fact, I think Bit­coin as an infla­tion hedge in the minds of many of the younger investors has replaced gold,” Jere­my Siegel said. “I think that the sto­ry of gold is a fact that the young gen­er­a­tion is regard­ing Bit­coin as the substitute.”

The pro­fes­sor added that gold’s per­for­mance in 2021 has been “dis­ap­point­ing,” in fact the metal’s worst year since 2015. Gold lost 5.81% of its val­ue dur­ing 2021, while Bit­coin gained near­ly 60%. The S&P 500, in com­par­i­son, rose by about 30%.



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