Gold or Bitcoin debate seems to be getting hotter. A JP Morgan study has revealed that young people are buying Bitcoin while the old guard is lining up to buy gold to ward off any economic downturn. The phenomenon once again highlights the chasm between the old and young investors who take different paths in their quest to achieve economic prosperity.
Interestingly, neither can be accused of making a foolish decision since both gold and Bitcoin have done exceedingly well in these pandemic-ridden times. Bitcoin has touched $11,700 this year, and gold also crossed $2,000 per ounce. These are remarkable returns yearly and highlight the safe-haven potential of both the assets. So, gold or Bitcoin debate is a confusing choice.
Gold or Bitcoin? Now, it depends on your age
The JP Morgan statement mentions that the ‘gold or Bitcoin’ investment camps differ from each other on a wide variety of investment instruments. The alternative currencies aren’t everyone’s cup of tea, especially the older investors who still include gold as part of their long-term portfolio.
Considering the current circumstances, the younger people seem justified when they put their trust in cryptocurrency, particularly Bitcoin. The rapid digitization in finance, falling confidence in fiat currency, and flailing economies make a strong case for Bitcoin. It is also easier to move around compared to physical gold assets.
Gold, on the other hand, has proven its worth over hundreds of years as a safe-haven asset. It is more established and centuries of data to back its credentials. The precious metal has been the choice of elites for centuries now. Whether it is the 1850s Gold Rush or the spiritual value, people have always preferred to accumulate gold in any form. It is the ultimate gift you can give to your future generations.
Gold or Bitcoin debate has no end, at least for now
Bitcoin may be new, but it has gone through significant upheavals in recent times and came out relatively unscathed. It has performed well compared to other highly volatile cryptocurrencies, which have lost their value merely in a few years of existence.
Bitcoin entered the financial scene in 2008 as the Great Recession engulfed world economies. Young people felt powerful, believing there can be a digital currency far from the control of centralized financial power centers. The hard economic times further strengthened their resolve to maintain their financial privacy through cryptocurrencies. Bitcoin is their hope against the highly centralized financial machine that controls the financial destiny of the masses.
Young people prefer Bitcoin as they don’t have any faith in banks. To them, Bitcoin is a tool that promises financial independence, wealth, and privacy all in one. Additionally, both groups don’t share similar views on stocks either. Younger people are lapping up stocks like never before, while the older generation is busy selling the equities.