It seems that investment decisions depend very much on the generation, or else when the investor was born. Gold and Bitcoins are a popular choice for both older and younger investors.
Prices of both asset classes, Bitcoin and gold, are rising. This is despite the coronavirus crisis. Investors are looking at both assets as a safe haven and a certain protection against inflation. However, the age of investors provides interesting data. While older investors tend to invest in gold, younger investors are betting on Bitcoin.
Fear of COVID-19
Analysts at Bloomberg found that investors are betting on investing in BTC and gold as hedges against inflation as well as stock market weaknesses. However, it is interesting to see that older investors reach for gold, while younger ones are “staking sats”.
It is well known that gold was a refuge for the older generation, known as the “Baby Boomers”. This trend is not disappearing. Millennials prefer technology.
Some predict that the estimated wealth of $ 68 trillion, which will be transferred from the Boomer generation in the next 25 years, will massively affect the price of BTC. According to the Messari platform, a 1% allocation of institutional funds could mean a price of $ 50,000 for 1 BTC.
However, it should be noted that these alternative investments come at a time when investors are concerned about the long-term impact of the pandemic on the economy. Although efforts are being made to return to normal, we still face restrictions.
Both assets also experienced a significant recovery in connection with the falling dollar. It is declining in spite of the constant printing of money by the Fed. Both gold and Bitcoin fell in price in mid-March. The Black Thursday was the worst. Falling prices are also driving investors to invest in safe assets.
Investors, regardless of the generation in which they were born, are worried about the future development of economic situation. It is natural that they invest in safe havens to protect their assets from inflation.