67% of Millennials Believe Bitcoin Is A Superior Safe Haven Compared to Gold

67% of Millennials Believe Bitcoin Is A Superior Safe Haven Compared to Gold

Millennials believe that Bitcoin is a better safe-haven than gold. Despite its increased adoption, Bitcoin has experienced several social problems in its continued rise to prominence.

Over the last few years, we have seen first-hand how millennials deal with their personal finances.

The older generation believed in gold as the last resort in beating inflation, but with central banks printing more money than ever before due to the pandemic, many have had to search for better ways to hedge against inflation.

Millennials Believe In Bitcoin’s Future

A recent study from SimpleMoneyLife shows that cryptocurrencies are getting more adoption worldwide, despite their high volatility. The increased popularity, along with recent price rallies, has made these assets more preferable to legacy investment options like gold or government bonds.

In its research, SimpleMoneyLife, a personal finance platform, quoted a study from the deVere Group. The study revealed that about 67 percent of millennials see Bitcoin as a better store of value than gold.

The consistent adoption from millennials and increased institutional investment, has bolstered cryptocurrencies’ popularity worldwide.

Social networking apps like Twitter also play major roles in spurring crypto adoption. As SimpleMoneyLife explained, the social networking site churns out over 70,000 Bitcoin-related tweets daily.

Many of these tweets come from verified accounts of Bitcoin evangelists like Anthony Pompliano, Peter McCormack, and even Twitter CEO Jack Dorsey.

Several experts have pointed to Bitcoin possibly overtaking gold due to its increasing popularity.

Yesterday, Brett Messing and Anthony Pompliano of New York hedge fund SkyBridge Capital recently explained that crypto investments are as safe as gold and government bonds. The investment experts listed increased regulation and an enhanced Bitcoin infrastructure for its safety, adding that its value should skyrocket on the back of increased investment from institutions and millennials.

Social Concerns

Despite adoption being on the rise, SimpleMoneyLife pointed out that Bitcoin is experiencing some social problems with its distribution.

Although created to be decentralized, only a few early investors are controlling the vast majority of BTC presently in circulation. The SimpleMoneyLife research showed that two percent of BTC wallets control about 95 percent of the assets in circulation. A further 70 percent of BTC addresses have less than 1 BTC in them.

Another social problem appears to be the gender inequality discovered in the Bitcoin ecosystem. Males are seen as more interested in cryptocurrencies in general than females, with SimpleMoneyLife reporting that 85.77 percent of Bitcoin-related engagement comes from men, while 14.23 percent of the network’s participants are female.

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Author: Jimmy Aki

Dennis Gartman: ‘Bitcoin is the Millennials’ Gold’ & Should Be Left to ‘Wiser or Courageous’ People

Dennis Gartman: ‘Bitcoin is the Millennials’ Gold’ & Should Be Left to ‘Wiser or Courageous’ People

“Market can remain illogical longer than you or I could remain solvent. And right now bitcoin seems to me to be utterly illogical,” says Gartman.

Dennis Gartman remains a gold bull with no interest in Bitcoin, despite the latter beating yellow metals’ performance by a wide margin. Despite bullion’s pullback since hitting its all-time high in August at $2,075, Gartman believes,

“You have to stay in gold. I think that there’s no question about it.”

The chairman of the University of Akron’s Endowment Investment Fund does understand that the traditional safe haven asset is getting “competition from Bitcoin” but according to him, the digital asset will “disappear eventually.” He added,

“Perhaps it’s just old age on my part wanting to be involved in the gold market.”

Gartman doesn’t believe in the infinite supply of the crypto asset pushing the price of Bitcoin higher because “there are seven thousand various cryptocurrencies out there. There’s an infinite amount of finite amounts of currency.”

As such, he thinks all the fun and enthusiasm over Bitcoin and cryptocurrencies will go away eventually. Not right away, but maybe in two to four decades. Gartman said,

“Perhaps I’m just an old man with just a sense of history. Perhaps I shall be wrong. Perhaps Bitcoin becomes the currency of the future. If so it shall do so without me.”

BTC is “utterly illogical”

With all the central banks around the world working in coordination, from the US Federal Reserve Bank, ECB, Bank of Canada to the People’s Bank of China and Russian Central Bank, “that’s going to drive gold prices higher” whether it is in the dollar, euro, yen, or renminbi, he said.

“I think gold gets stronger across the board for a long price,” Gartman told Bloomberg on Tuesday.

On Bitcoin’s equivalency to gold, Gartman doesn’t believe it as the precious metal has been around for thousands of years and Bitcoin has only been for just over a decade. He said,

“Bitcoin is the millennials’ gold. I understand that. I get that. I will never understand Bitcoin as far as being able to buy it at $10,000, $15,000, $20,000. I should leave that to people who are wiser or smarter or more courageous than I am.”

Gartman’s fear about the world’s largest cryptocurrency is primarily regulation as he feels in the “not too distant future, the monetary authorities, various central banks around the world are going to refuse to give up their monopoly on monetary policy.”

This means Bitcoin has been rendered zero. But before becoming valueless, can it go to $100,000?

“As John Maynard Keynes once said the market can remain illogical longer than you or I could remain solvent. And right now bitcoin seems to me to be utterly illogical,” said the retired editor of The Gartman Letter. He added,

“Again those who have done well in it. I wish them that they continue to do well but they shall still do so without me. I’d rather I’d much rather own gold.”

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Author: AnTy

Former Australian Senator With Highly Conservative Views Becomes the Next Bitcoiner

Former Australian senator Cory Bernardi describes Bitcoin as “the millennial’s version of gold.”

A Bitcoin convert, Bernardi took to Twitter to share that it has been only in the last couple of years that he became a bitcoiner.

“My conclusion is it is the millennial’s version of gold.

Still see risks attached but are basically the same as other asset classes – leg, confidence and demand. See demand getting stronger.”

He further mentioned Morgan Creek Digital partner Anthony Pompliano for advocating Bitcoin, to which Pomp said, “There are hundreds of people pushing content, education, and knowledge in the space. Complete team effort.”

Earlier this January, he left politics after serving under the Liberal Party for over a decade. Bernardi, who served as a senator for South Australia, is known for his highly conservative views.

Following his controversial career in politics, Bernardi now runs a membership-based website Confidential Community which, according to him, offers “more common sense than most people can handle.”

Last week was the only other time Bernardi tweeted about Bitcoin when he retweeted Pomp and said his self-proclaimed “famous” newsletter covered the impact of the election on Bitcoin and other potential asset classes.

In 2020 more and more high-profile people have publicly shared bullish views about Bitcoin and declared their BTC holdings. From Paul Tudor Jones, Stan Druckenmiller, Ben Miller to companies like Square and MicroStrategy have found Bitcoin as the best alternative asset class as a hedge against inflation and devaluing the US dollar.

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Author: AnTy

Not Just Millennials, Boomers are Buying Bitcoin at a Record Pace

Millennials are the ones that have been fueling bitcoin growth all these years, who are burned by the banks. As we reported, 51% of millennials trust bitcoin over big banks.

This generation is the one that has lived through multiple recessions and they are the ones who are anticipated to inherit more than $68 trillion from their Baby Boomer parents by the end of this decade.

But Baby Boomers aren’t limited to just knowing about bitcoin anymore, they are actually investing in the digital currency.

“We’ve seen a lot of growth this year from both Boomers and Millennials,” said Alex Leishman, co-founder and CEO of River Financial Inc., a startup Bitcoin financial services firm.

Fed’s the Inspiration

According to the San Francisco-based firm, its number of clients has doubled every month this year, which was fueled by “Bitcoin Boomers,” new crypto investors over the age of 55. Since March, they accounted for 77% of River Financial’s volume growth.

Its average monthly volume increased 80% this year, which in part is led by Federal Reserve’s asset purchase policy, the firm said.

“The surging activity we’ve seen since the beginning of 2020 has been in part inspired by the Federal Reserve’s unprecedented monetary intervention,” said Leishman, a former aerospace engineer who was also a teaching assistant for Stanford University’s first cryptocurrency class.

Bitcoin is becoming more accepted after macro investor Paul Tudor Jones shared last month that he has 1 to 2% of his assets in bitcoin.

The company exclusively deals in Bitcoin and has now a private client service for investors who want to purchase up to $250 million worth of BTC.

Traditional Finance Meet Bitcoin

The company announced that it had raised $5.7 million from investors including Slow Ventures, Polychain Capital, Castle Island Ventures, DG Lab Fund, and individual investors.

“The evolution of finance is only happening faster in the wake of the current global economic crisis,” said Olaf Carlson-Wee, Polychain Capital founder. “We see River Financial as bridging the gap between traditional finance and Bitcoin.”

The company which now has licenses to operate in 10 states, plans to further offer standard checking and savings accounts in the coming year in partnership with a chartered bank.

According to Leishman, while Coinbase and Grayscale cater to those with the trading mentality, they do not provide the kind of customer service not the older and wealthy investors seek. River Financials provides services that one would get at a bank and assigns a private adviser to its investors as well.

Leishman says it doesn’t charge a fee to store customers’ bitcoin and customers treat the service as a savings bank with deposits, bitcoin purchase, accounting for 97% of company’s transactions.

River’s advisers include Elizabeth Stark of Lightning Labs and Steve Lee of Square Crypto.

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Author: AnTy

Bitwise “Committed” to Bitcoin ETF, Sends a Letter to SEC about Significant Retail Demand for BTC

  • A Bitcoin ETF to provide investors exposure to BTC in a regulated manner
  • Charles Schwab’s study shows millennials growing interest in BTC
  • Most popular crypto app has 30 million accounts, more than Charles Schwab, TD Ameritrade, and E*Trade’s combined
  • But these Bitcoin access avenues have high fees, limited disclosures, & security risk

in response to their decision to disapprove the proposed rule change to list and trade shares of the Bitwise Bitcoin ETF Trust under NYSE Arca Rule.

Though the company is disappointed with the Staff’s decision, it is not giving up and aims to provide additional context to review Staff’s decision.

“Bitwise is committed to creating a bitcoin ETF that provides all investors with the ability to

access bitcoin in a regulated and familiar fund format with the transparent and robust disclosures required by the federal securities laws.”

Such an ETF, it said would provide protection for the current millions of US investors using other avenues to access BTC market.

Meeting SEC’s Requirements for an ETF

Bitwise in its letter dated Dec. 18, reiterates that two requirements found by the Staff in terms of the bitcoin market being resistant to market manipulation and fraudulent activity and that the listing exchange has entered into a surveillance sharing agreement with a regulated market of significant size are satisfied by BTC market.

Because the BTC price is set in the open market, Bitwise argues it is resistant to the kind of market manipulation scandals that occurred in markets that rely on coordinated fix pricing. Bitcoin’s inherent fungibility and the market’s distributed nature allows for effective arbitrage that it said helped insulate bitcoin from attempts to manipulate individual markets.

As for the market to be need to be resistant to a comprehensive set of market manipulation vectors to qualify, “This is a standard that, historically, even the most well-regulated, arbitraged, and liquid markets, such as the U.S. equity index options market, have not met.”

Bitwise’s research also pointed out that CME bitcoin futures — the largest US bitcoin market by notional volume — is a regulated market of significant size.

Why Does A Bitcoin even ETF Matter?

But why exactly the market needs a Bitcoin ETF? Bitwise notes that a large number of US investors are investing in Bitcoin but they need to do so in a safe and efficient manner.

The company illustrated Charles Schwab’s recent study that showed Grayscale Bitcoin Trust is the fifth largest holding in millennial retirement accounts, ahead of companies like Berkshire Hathaway, Walt Disney, and Microsoft.

GBTC it said is the only tool that retail investors can access Bitcoin through a traditional brokerage account. However, it’s ability to offer high-fidelity exposure to BTC is limited. Also, it is traded on the secondary market at a premium to its net asset value (NAV) as high as 140%.

Another primary means for retail investors for accessing bitcoin is via crypto apps. Coinbase is once such incredibly popular one that has 30 million accounts, more than the number of active brokerage accounts at Charles Schwab, TD Ameritrade, and E*Trade combined. But they have their own challenges in terms of high fees, limited disclosures, and security risk.

“Our goal is to demonstrate that there is significant retail demand for bitcoin exposure, and to note that this demand is currently forced into products that forgo the protections and disclosure requirements that would be required of an ETF.”

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Author: AnTy