Bitcoin and NFT will outperform stocks, survey finds

[ad_1]

A Bitcoin ATM. Photo: PA

Investors have more confidence in cryptocurrencies and non-fungible tokens (NFTs) to generate solid returns in 2022 than in stocks, new data has revealed.

In a poll conducted by some 6,000 people on LinkedIn over the past two weeks, 30% of respondents said that a cryptocurrency other than bitcoin (BTC-USD) would give the best investment results.

25% said bitcoin and NFTs would be the best investment for 2022, while only 20% believe stocks will outperform others.

Nigel Green, founder and CEO of deVere Group, an independent financial advisory firm, which conducted the investigation, said the results were “surprising”.

“Stocks, which have always been the backbone of successful investor portfolios, are apparently falling out of favor as a way to build and build wealth, with digital assets taking over,” he said. -he declares.

Read more: European stocks follow the Asian rally

Green said investors are looking at digital assets because they predict that markets in 2022 will perform the same as in 2021. Cryptocurrencies, despite falling in December, have had a remarkable year.

Bitcoin ended the year up almost 65%. As a perspective, the S & P500 (^ GSPC) – the benchmark of the world’s largest economy – was up about 28%, and gold was down about 7%.

Another reason could be that rising prices amid supply chain bottlenecks and a shortage of skilled workers is a major concern for investors as their purchasing power erodes.

“Bitcoin and other digital currencies are widely viewed as a shield against inflation, primarily due to its limited supply, which is not influenced by its price,” Green said.

He also believes investors are increasingly convinced that digital currencies are “the inevitable future of money”.

Read more: Live Crypto Prices

The survey also suggests that NFTs are increasingly seen as a future-proof asset class. Over the past year, many major global sports franchises, fashion brands, and renowned artists and musicians have launched NFTS.

The story continues

Meanwhile, the survey showed that investors preferred “other cryptos” to bitcoin, which Green said could mean they are leaning more toward ethereum (ETH-USD).

“Ethereum is the most requested development platform for smart contracts, thus underscoring the value of this network not only as a platform for developers, but as a global financial utility.”

The price of Ethereum was up on Wednesday. Chart: Yahoo Finance France

“There is also tremendous enthusiasm for the revolutionary transition to the ETH 2.0 upgrade, which makes the Ethereum network significantly more scalable, sustainable and secure. “

The investigation comes as bitcoin and ethereum prices were up on Wednesday.

Ethereum jumped 5% to trade at $ 3,277.

Meanwhile, bitcoin rose 2.8% to trade at $ 43,068 (£ 31,594), recovering from early week losses when it briefly fell below the critical 40 mark. $ 000. It is down about 30% from its all-time high of $ 69,000.

“The main cause of the recent sell-off has been an aggressive US Federal Reserve, which shifted its interest rate hike schedule earlier than expected, making risky assets like cryptocurrencies less attractive,” Naeem Aslam said. , Chief Market Analyst at AvaTrade.

Bitcoin checked on Wednesday. Chart: Yahoo Finance France

“In addition, we can now confidently say that there is a positive correlation between the prices of cryptocurrencies and the broader stock markets. As a result, the recent decline in the stock markets has also had an impact on sentiment on markets. crypto markets. “

He said there would likely be volatility in the crypto markets over the next few days due to the much anticipated inflation data.

Indeed, in November, when inflation hit its highest level in 30 years, bitcoin hit its highest level ever.

“Investors have started to accumulate more digital coins in order to protect themselves from rising consumer prices. If inflation resumes its rapid rise, bitcoin could potentially rise again.”

Watch: What are the risks of investing in cryptocurrency

[ad_2]