Jeremy Siegel, the Professor of Finance at the Wharton School of the University of Pennsylvania, believes that BTC is gaining popularity among young investors. During a recent interview with CNBC, Siegel outlined the importance of BTC as an inflation hedge.
Siegel highlighted the drawbacks of rising inflation and noted that the Federal Reserve (Fed) and other authorities have failed to meet expectations. With vast experience of nearly 5 decades, Wharton’s finance professor is one of the well-known voices in the global financial ecosystem.
“Let’s face the fact, I think bitcoin (BTC) as an inflation hedge in the minds of many of the younger investors has replaced gold. Digital coins are the new gold for the millennials,” Siegel said. “It’s a fact that the young generation is regarding bitcoin as the substitute for gold,” he added.
Commenting on the performance of gold during the recent year, Siegel said that the commodity remained disappointing. "Old people remember the 1970s. During that inflation time, gold soared. This time, it is not in favor,” Siegel explained.
Ray Dalio and Michael Saylor
Siegel is not the only finance professional who believes that BTC is slowly replacing gold as an inflation hedge. Ray Dalio, a prominent US-based hedge fund manager and the Founder of Bridgewater Associates, called Bitcoin digital cash and mentioned that investors have started considering BTC as a store hold of wealth and an inflation hedge, just like gold. “Bitcoin has proven itself over the last 10 years. It hasn’t been hacked,” Dalio said.
In an interview with CNBC’s Fast Money, Michael Saylor, the CEO of the business intelligence firm, MicroStrategy, said that BTC is like digital gold on a big tech network. He added that the cryptocurrency has outperformed gold as an inflation hedge in the last few years. “Bitcoin is the highest, most dominant, digital property network,” Saylor said.
