Jeremy Siegel, a professor at United States business school Wharton, believes Bitcoin has surpassed gold as the ultimate hedge against inflation.
Speaking during an interview with CNBC, Siegel suggested that Bitcoin’s status has been influenced mainly by millennials who consider cryptocurrency as a substitute.
In recent months, amid soaring inflation figures, both Bitcoin and gold have been pitted against each other as the attractive hedge.
Siegel acknowledged that gold has been the favorable hedge against inflation historically, but Bitcoin has the upper hand in the current environment. However, Siegel added that gold is still a good investment option despite slightly falling behind.
“Let’s face it, I think Bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold. Digital currencies are the new gold for millennials. <…> I still think it [gold] is a good investment, and you should hold commodities,” said Siegel.
Overall, the scholar noted that in 2021, gold’s performance was ‘disappointing’. Notably, the precious metal partly remained stagnant, with Bitcoin soaring to new record prices.
Elsewhere, Frank Holmes, CEO of investment firm U.S. Global Investors, also opines that Bitcoin has replaced gold among millennials.
As previously reported by Finbold, Holmes stated that in 2022, trading activity by young people would drive Bitcoin to outperform gold. However, he stressed that Bitcoin’s progress faces hindrances due to high market volatility and ongoing regulatory uncertainty.
Institutions leaning towards Bitcoin
Additionally, Bitcoin’s ability to act as a hedge against inflation is also receiving approval from established traditional finance sector players. In October last year, banking giant JP Morgan analysts revealed that institutional investors are leaning more towards the cryptocurrency with the view it’s a better inflation hedge than gold.
Besides Bitcoin gaining traction as a hedge against inflation, the asset and other cryptocurrencies continue to find other use cases as a payment option. For instance, in October last year, Wharton announced it would start accepting cryptocurrencies as tuition fee payments for the online blockchain and digital assets program.
Featured image via Wharton School YouTube