Anyone who is a bit concerned with economic issues, will have noticed that for some time the fear of a recession occurring in the next 1-2 years circulating. If she has not already begun (albeit slowly). Because: the last 10 years after the financial crisis of 2008/09 worked well for most financial markets. However, the story also shows that about every 8-10 years, the economy slows down or it comes to a crash. Conversely, the longer an uptrend persists, the more likely it is to experience an economic crisis. Many investors have been asking themselves for some time how best to set up their portfoliosto be well prepared for the next few years. The generation of Millennials seems to have already answered this question in part. To buy bitcoin for this purpose: for many conceivable.
Bitcoin buy interesting for many millennials
40% of Millennials, especially young to middle-aged adults, would consider buying cryptocurrencies like Bitcoin in the event of a recession . This is the result of a study published on 10th September by the international broker eToro.
The study was conducted online in the United States from July 18 to 31. It should serve to examine how different generations manage their financial investments or intend to do so in the future. For this purpose, about 1000 people were interviewed.
According to the survey, more than 66% of US investors are afraid of a recession. To reduce their risk, they would shift part of their equity investments to other investments. These include, among others, commodities and real estate. That is why it is expected that a shift of stocks into other assets will take place in the coming months and years.
Guy Hirsch, Managing Director of eToro US, explains:
Historically, these investment opportunities have been limited to wealthy and institutional investors, but innovation opens up opportunities for day-to-day investors and the results of the study clearly show that demand exists.
Buying bitcoin is not an option for older generations
As encouraging as the results of the eToro study are, they also show that older generations would prefer other, traditional investments. Thus, the study shows that 50% of Generation Z would buy real estate rather than other assets and that 38% of Generation X would prefer commodities.To explain the names of the generations: The classification of the generations in X, Y, Z tries to organize the birth cohorts. The division is only rough and differs depending on the country and literature. Nevertheless, one can hold a rough time schedule:
- Generation X: about 1965 to 1980
- Generation Y: approx. 1980 to 1995 (also called Millennials)
- Generation Z: approx. 1995 to 2010
How good is it to buy Bitcoin as a hedge against a recession?
Fears of a coming recession continue to increase and, at the same time, interest in cryptocurrencies is rising to hedge against digital coins. One of the focal points for this purpose is Bitcoin. BTC is often referred to as digital gold because it is the first digital good that is rare and thus ideally suited for storing value (like gold).Especially in times of crisis, gold enjoys great popularity, which has a positive effect on the price of the raw material. But if you look at the constant comparison between gold and bitcoin, you have to ask yourself the question of how sensible BTC actually is as a hedge against a recession.
The truth is, no one can answer that question at this time. Bitcoin exists only since 10 years. Since then, there has been no recession or major global financial crisis. Even if Bitcoin and Gold have a lot of similarities on paper , the claim that Bitcoin performs well in times of economic crisis has yet to materialize.
But it is also clear: There is no 1: 1 correlation of the two assets. But it can be determined phase by phase, a stronger correlation. Recently, for example, when the trade war between the US and China kept the world in suspense. It will be interesting to see how the course of Bitcoin will evolve in the next few years apart from all hype forecasts.
Source of info cryptomonday.de.