Professor Wharton said that Bitcoin (BTC) is the most valuable cryptocurrency in the world and has replaced gold as an inflation hedging tool for young investors.

Wharton finance professor Jeremy Siegel told CNBC Squawk Box on Friday that gold’s performance in 2021 is “disappointing.”

On the other hand, Siegel believes that BTC is increasingly becoming a hedge against inflation for young investors:

“Let’s face it that, in the minds of many young investors, Bitcoin has replaced gold as a hedge against inflation. Digital coins are the new gold for millennia. I think the story of gold is that the younger generation sees Bitcoin as inflation. New gold. Fact “.
Siegel also recalled that the older generation witnessed the rise in gold during the 1970s inflation. “This time it’s not welcome,” he said.

Gold has traditionally been an active hedge against inflation, but it fell short of investor expectations in 2021, the worst year since 2015, when it fell nearly 5% to $ 1,800. Despite severe price fluctuations in 2021, bitcoin has grown by about 70% by the end of 2021.

On the subject: more and more billionaires are turning to cryptocurrencies for fear of legitimate inflation.

Several well-known global investors will support Bitcoin over gold in 2021, and Dallas Mavericks owner Mark Cuban believes Bitcoin will be “better than gold” in October 2021. Barry Sternlikst, co-founder of Starwood Capital Group, also said gold is “worthless.” He believes that maintaining BTC is due to the fact that each government prints a lot of money.

However, while BTC is becoming an increasingly popular gold asset, many financial and crypto experts believe it has yet to prove its inflation hedge status.

Source: CoinTelegraph