Investors are confident in cryptocurrencies and non-fungible tokens (NFTs) to offer more reliable returns than equities in 2022, according to new data.
In a poll conducted by about 6,000 people on LinkedIn in the past few weeks, 30% of respondents said that cryptocurrencies other than Bitcoin (BTC-USD) provide the best investment results.
Twenty-five percent said Bitcoin and NFTs are the best investments in 2022, but only 20% believe that equities outperform others.
Nigel Green, founder and CEO of deVere Group, an independent financial advisory firm that conducted the survey, said the results were “amazing.”
“Equities that have traditionally dominated the portfolio of successful investors seem to be a way to generate and build wealth by taking over digital assets, and they are losing support,” he said. rice field.
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Investors are enthusiastic about digital assets as the market in 2022 is expected to perform as well as in 2021, Green said.
Bitcoin has ended the year with an increase of almost 65%. The outlook is that S & P500 (^ GSPC), the world’s largest economic benchmark index, has risen by about 28% and gold has fallen by about 7%.
Another reason is that rising prices amid supply chain bottlenecks and a shortage of qualified workers could be a major concern for investors as they are declining in their spending power. there is.
“Bitcoin and other digital currencies are widely regarded as a shield against inflation, primarily because of their limited supply and price independence,” Green said.
He also believes that investors are increasingly convinced that digital currencies are the “unavoidable future of money.”
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The study also suggests that NFTs are increasingly recognized as a promising asset class. Last year, many major global sports franchises, fashion brands, well-known artists and musicians launched NFTS.
Meanwhile, research shows that investors prefer “other cryptocurrencies” to Bitcoin, and Green may be inclined to Ethereum (ETH-USD).
“Ethereum is the most sought after development platform for smart contracts, thereby highlighting the value of the network not only as a platform for developers, but also as a global financial utility.”
“There is also a great deal of enthusiasm for the game-changing transition to the ETH 2.0 upgrade, which makes the Ethereum network fairly scalable, sustainable and secure.”
The survey will be conducted when both Bitcoin and Ethereum prices rise on Wednesday.
Ethereum surged 5% and traded at $ 3,277.
Meanwhile, Bitcoin rose 2.8% to trade at $ 43,068 (£ 31,594), recovering from losses when it temporarily fell below the critical $ 40,000 at the beginning of the week. It is down about 30% from the record high of $ 69,000.
NaeemAslam, AvaTrade’s Chief Market Analyst, said:
“In addition, we can confidently assert that there is a positive correlation between cryptocurrency prices and the wider stock market. As a result, the recent decline in stock markets has also affected crypto market sentiment. I did. “
He said the crypto market could be volatile in the coming days due to highly expected inflation data.
This is because Bitcoin reached a record high in November, when inflation reached its highest level in 30 years.
“Investors have begun to accumulate more digital coins to protect themselves from rising consumer prices. If inflation resumes a rapid rise, Bitcoin could surge again. “
Watch: What are the risks of investing in cryptocurrencies?
