Investors believe that Bitcoin and other cryptocurrencies will deliver better returns than the stock market in 2022.
According to a new survey on LinkedIn, 30 per cent of investors said that they believe another cryptocurrency other than Bitcoin will yield the best results this year. Meanwhile, 25 per cent said that Bitcoin and non-fungible tokens (NFTs) will outperform other investments, while just 20 per cent said that they think stocks will perform better than the others.
“Stocks, which have always traditionally made up the bulk of successful investors’ portfolios, are falling out of favour it seems as a way to create and build wealth, with digital assets taking over,” said Nigel Green, the founder and chief executive of deVere Group.
“Also, it’s surprising that it’s believed by investors that ‘other’ cryptocurrencies – and not the headline-grabbing, dominant Bitcoin – will out-run other asset class this year in terms of returns.”
Bitcoin ended 2021 up almost 65 per cent, while the S&P 500 was up by approximately 28 per cent. Meanwhile, gold was down by around seven per cent by the end of the year.
“Investors are increasingly confident that digital currencies are the inevitable future of money,” added Green.
“In our increasingly tech-driven, globalised world, it makes sense to hold digital, borderless, decentralised currencies and/or other digital assets, such as NFTs.”
Last year, a survey by digital institutional investment platform Valk found that professional investors are increasingly focusing on cryptocurrency and digital assets with one third investing in cryptoassets for the first time, and 55 per cent raising their allocations.