Cryptocurrency

Millennials use BTC as a hedge

Everyone who deals a bit with economic issues, will have noticed that the longer the fear that in the next 1-2 years, entering the recession is circulating. If it has not already begun (albeit slowly). For the last 10 years after the financial crisis of 2008/09 was good for most of the financial markets. History shows, however, approx. every 8-10 years is waning, the economy, or it comes to a Crash. That is to say, conversely: the longer an uptrend lasts, the more likely the Occurrence of an economic crisis. Many investors ask themselves, therefore, been a while, how you set up your Portfolio for the next few years will be well armed. The millennial Generation seems to have this question partially answered already. To buy this purpose, Bitcoin: for many of the conceivable.

Buy Bitcoin interesting for a lot of Millennials

40% of the people of the Generation of ‘Millennials’, especially young to middle-aged adults, would pull in the event of a recession, the purchase of crypto-currencies such as Bitcoin can be considered. This is the result of a on 10. September published study, which was conducted by the international Broker eToro.The study was conducted online in the period from 18. to 31. July in the United States. You should be used to examine how different generations manage their financial investments or in future projects. In addition, approximately 1000 people were interviewed.According to the survey, more than 66% of U.S. investors fear a recession. In order to reduce your risk, you would move a portion of their equity Investments in other equipment. This includes, among other things, raw materials and real estate. This is exactly why it is expected that a switch of shares will take place in other Assets in the coming months and years.Guy Hirsch, CEO of eToro U. s., explains:

In the past, these were limited to high net worth and institutional investors, but innovations are opening up these opportunities for everyday investors and the results of the study clearly show that the demand is there.

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Bitcoin comes to buy for the older generations, less out of the question

As pleasing as the results of the study by eToro are also show on the other side too, that older generations would prefer other more traditional Investments. The study shows that 50% of Generation Z would rather buy real estate than other Assets, and that 38% of the Generation would prefer X raw materials.For the explanation of the names of the generations: Through the division of the generations X,Y,Z is trying to organize the year of birth. The classification is only a rough and differs depending on the country, and literature something. Nevertheless, you can hold a rough division of time:Generation X: CA. 1965 to 1980Generation Y: approx. from 1980 to 1995 (also Millennials called)Generation Z: CA. 1995 to 2010Möchtest you act on one of the world’s leading CFD brokers? We have for you in our Plus500 Test all of the knowledge about values is collected and written down, where here are the pros and cons are. Just have a look on the Test or see for yourself and join today at Plus500.

How sensible is it to purchase Bitcoin as a hedge against a recession?

The fear of a coming recession is growing stronger and stronger, and at the same time, the interest in crypto-rising currencies, with the digital Coins, however, secure. For this purpose is, above all, a focus on Bitcoin. BTC is often referred to as a digital Gold, because it is the first digital Good that is scarce and so the Store of value (like Gold) is ideal.Especially in times of crisis, Gold is always a 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 need to ask the question, how useful BTC is actually as a hedge against a recession.The truth is that this question can be answered at the current time no one. Bitcoin exists only since 10 years. Since then, there was no recession or major global financial crisis and more. Also, if Bitcoin and Gold on paper, many Similarities, the claim that Bitcoin when the economy is performing crises yet to come true.However, it is also: There is no 1:1 correlation of the two Assets. However, there can be observed a stronger correlation. Recently, for example, as the trade war between the US and China has kept the world in suspense. You may be curious as to how the price of Bitcoin in the next few years, apart from all the Hype forecasts will continue to develop.What do you say to the results of the survey? Belong to which Generation are you and how do you buy Bitcoin to hedge against times of crisis? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.