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

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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.

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