- The correlation between bitcoin and gold is a big reflection on the investment preferences of the younger generation compared to the older one.
- Especially during times like these with the coronavirus fuel economic crisis.
The correlation between bitcoin and its precious metal alternative, gold, is a big reflection on the investment preferences of the younger generation compared to the older one. Especially during times like these with the coronavirus economic crisis.
JP Morgan Chase, one of the biggest financial institutions in the world, recently released a report stating that interest in alternative assets has risen significantly with millennials typically choosing bitcoin over digital assets with boomers going towards traditional assets such as gold.
Earlier this year in March, the economy took a big hit due to the COVID-19 pandemic but since then, investor demand. This has risen by 46% on an international scale with significant rallies in both gold and the crypto markets.
This happens whilst the US dollar collapses in front of our very eyes. Many people are now calling for an alternative reserve currency with crypto being part of the list…
It’s no surprise though that Millennials should choose crypto over traditional assets. It is well documented that the younger generation is more likely to get involved with new technologies such as bitcoin compared to the older generation. That’s not to say that the older generation are wrong or that even the younger generation are right but it’s just a typical demographic for a nascent industry. This happens with all sorts of new technologies, not just cryptocurrency or blockchain.
That being said, many of the older generation have accepted that even though Cryptocurrency isn’t for them, the power of blockchain could significantly change the way we live.
The strategists in the report say the following:
The older cohorts continued to deploy their excess liquidity into bond funds, the buying of which remained strong during both June and July.