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Bitcoin outshines gold for under-40 investors

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About three quarters of investors aged under 40 would rather hold bitcoin than gold in their portfolio, according to a survey by independent financial advisory and fintech deVere Group.

The deVere poll of more than 750 clients from around the world, suggests that the digitalisation of assets is a reality that the financial services sector can no longer ignore.

Some 77% of clients aged under 40 would opt for the cryptocurrency over the precious metal in their portfolios to build their long-term wealth opportunities, indicating a resounding shift in the investment landscape.

While gold has traditionally been considered a safe-haven asset and a store of value, younger generations see bitcoin as a more dynamic and potentially rewarding investment.

Year-to-date, BTC is up 112.75%.

In comparison, on Wall Street, the S&P 500 is up 13.97%, the Dow Jones 2.79% and the Nasdaq 29.76%.

“This trend signals a notable shift away from traditional investment assets towards the digital realm,” said deVere Group CEO Nigel Green.

“Younger generations are more familiar with digital assets and the tech that underpins them. Bitcoin represents a digital-native investment option that aligns with their understanding of technology and their belief in the future of digital currencies. The rise of online transactions and digital payments also underscores the relevance of digital assets like bitcoin,” Green explained.

He said that survey respondents also cited the potential for high returns as a driving factor in their preference for bitcoin.

Price appreciation

“The cryptocurrency’s track record of significant price appreciation seems to have caught the attention of younger generations.”

Major financial institutions and corporations are integrating bitcoin into their investment strategies and balance sheets. This institutional support lends legitimacy to the cryptocurrency and can further fuel its adoption, making it more appealing to younger investors.

In addition, its divisibility and ease of transfer across borders make it a versatile asset for individuals looking to diversify their investment portfolios. Liquid markets and 24/7 trading give the cryptocurrency an advantage over gold in terms of flexibility.

“Concerns about inflation will have likely driven bitcoin’s appeal to investors too. Bitcoin’s fixed supply of 21 million coins is seen as a potential hedge against the devaluation of fiat currencies, making it a desirable asset for wealth preservation.”

While bitcoin’s allure is undeniable, individuals should carefully assess their risk tolerance and diversify their investments to manage potential downsides, given the inherent volatility of cryptocurrencies, cautioned the deVere CEO.

“Bitcoin is at the forefront of this paradigm shift, and its unique properties make it a favoured investment option for a generation that values innovation, accessibility, and the potential for substantial returns,” concluded Green.