News

Wharton's Professor Warns About Inflation, Predicts Many Rate Hikes, Says Bitcoin Has Replaced Gold for Millennials

A finance professor at the Wharton School of the University of Pennsylvania has warned about inflation and the Fed hiking rates many more times than the market expects. He also said that bitcoin has become the new gold for the millennials.

Finance Professor on Bitcoin and Inflation

Wharton’s finance professor Jeremy Siegel shared his outlook for various markets that he believes investors should have exposure to this year in an interview with CNBC Friday.

Siegel is Russell E. Palmer Professor Emeritus of Finance at Wharton School, University of Pennsylvania. His research focuses on demographics, financial markets, long-run asset returns, and macroeconomics.

He was asked about gold and commodities as investments going forward. Noting that gold “has been disappointing,” he stressed that “it’s a fact that the young generation is regarding bitcoin as the substitute” for gold. The professor opined:

Let’s face the fact, I think bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold … Digital coins are the new gold for the millennials.

“Old people remember the 1970s,” he continued. “That inflation time, gold soared. This time it is not in favor,” he noted.

Professor Siegel also believes that investors should have exposure to commodities, which he said could be done by investing in emerging markets, which are commodity-sensitive.

The finance professor proceeded to discuss inflation, which he has raised concerns about on multiple occasions. “I’ve been saying this for a long time. I’ve been warning about inflation for a year and a half,” he emphasized.

“The Fed and the fiscal authorities so way overdid it, particularly the Fed on liquidity,” he described. “They are so far behind the curve that we have a lot of inflation that is embedded in.” The professor concluded:

The Fed is going to have to hike many more times than what the market expects.

Tags in this story
Bitcoin millennials, commodities, digital gold, Emerging Markets, Federal Reserve, finance professor, gold, inflation warning, Rate Hike, rate hikes, the fed, University of Pennsylvania, Wharton School

What do you think about the finance professor’s inflation warning and his comment about bitcoin and gold? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer
Show comments