Link copied 
With inflation becoming a major concern for investors, a finance professor at the Wharton School of the University of Pennsylvania further warned that the Fed might hike rates more times than what the market expects. He also pointed out that gold appears to be losing ground to Bitcoin (BTC) as an inflation hedge especially among younger investors.
Jeremy Siegel, a finance professor at the Wharton School, University of Pennsylvania, shared his outlook for various markets that investors should have exposure to this year, according to Bitcoin.com. His research is focused on macroeconomics, financial markets, long-run asset returns, and demographics.
In a recent interview, Siegel was asked about commodities and gold and potential investment options this year. However, the professor noted that gold has been disappointing and appeared to have lost its appeal among younger investors.
“Let's face the fact, I think bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold,” Siegel told CNBC in an interview on Friday. “Digital coins are the new gold for the millennials.”
While gold might have performed spectacularly in past high inflation periods, Siegel is doubtful it will be able to do so this time. “Old people remember the 1970s,” he added. “That inflation time, gold soared. This time it is not in favor.”
With the resurgence of concerns over inflation, investors are on the lookout for the best inflation hedge. Bitcoin and gold have been pitted against each other with crypto proponents highlighting Bitcoin’s supply limit of 21 million coins as a factor that makes it attractive as a hedge, according to Business Insider.
The professor also shared his views on inflation and the Fed’s likely action. “The Fed and the fiscal authorities so way overdid it, particularly the Fed on liquidity,” he said. “They are so far behind the curve that we have a lot of inflation that is embedded in. The Fed is going to have to hike many more times than what the market expects.”
