US citizens seemed to be taking a liking to Bitcoin and other cryptocurrencies, two recent reports suggest.
Yesterday, US bank JPMorgan said younger investors were "Likely to choose Bitcoin" as an investment over gold while a report from last week stated Americans were investing their "Excess" cash into cryptocurrencies.
Falling interest rates are tempting some Americans to forgo safety and pour their savings into assets such as stocks and Bitcoin, noted Bloomberg.
The report said it's now "Standard advice" in personal-finance subreddits and Facebook groups to keep extra cash in high-yield savings accounts.
In contrast, assets like Bitcoin and gold gave returns of 55% and 29% this year, while Ethereum, Chainlink, and some DeFi tokens, gave a minimum of 300%. Still, the report suggests the upside is yet not fully realized.
Only 18% of respondents chose cash investments such as savings accounts or CDs, while a smaller number presumably chose cryptocurrencies.
JPMorgan analyst Nikolaos Panigirtzoglou said in a report Wednesday that younger investors are generally interested in alternative assets like Bitcoin.
Gold and Bitcoin ETFs have been experiencing strong inflows over the past five months, as both old and young see the case for an "Alternative" currency, added Nikolaos.
That's not to say older generations are not warming up to Bitcoin.
Earlier this year, investing legend Paul Tudor Jones said his $22 billion Tudor Investments firm holds over 1% of total assets in Bitcoin futures.
Americans are "pouring" cash, stimulus checks into Bitcoin and gold
Published on Aug 6, 2020
by Cryptoslate | Published on Coinage
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