Investors pick BTC and NFTs over stocks for better returns

However, ‘another crypto’ is expected to perform better than bitcoin in 2022

A single Bitcoin lying on a green stock price chart                                 
Investors look to cryptos and NFTs for growth – Photo: Alamy
                                

Investors believe that bitcoin (BTC), other cryptos and non-fungible tokens (NFTs) are more “trusted” than stocks to give them better returns in 2022.

This is according to Nigel Green, the founder and CEO of independent financial advisory firm deVere Group, who ran a poll on LinkedIn.

The results of the poll found that just under a third (30%) of investors believe that “another cryptocurrency” besides BTC will give better returns than other investment options.

A quarter (25%) believe that BTC and NFTs will be the best investment option in 2022, with just 20% saying that traditional stocks will outperform other investment options.

Green said he was both “taken back” and “surprised” by the results of the poll.  

Three reasons behind the results

Green stated that there could be three key reasons behind the results of the poll.  

The first one being that investors are predicting that the crypto market will behave in a similar way as it did in 2021. The lead crypto BTC, ended the year up by 65%, whereas the S&P500 was only up by 28% while gold was down 7%.

Green went on to say, however, that past performance “is no guarantee of future returns”.   

Secondly, price increases due to supply chains bottlenecking, shortages of qualified workers and rising inflation is pushing people towards BTC and other cryptos, especially as they are seen as a “shield against inflation”.   

Finally, investors are increasingly confident “that digital currencies are the inevitable future of money”.

Green added: “In our increasingly tech-driven, globalised world, it makes sense to hold digital, borderless, decentralised currencies and/or other digital assets, such as NFTs.”

Why investors favour ‘another crypto’ over BTC

The CEO of deVere suggested that the reason why BTC had been pushed down the ranking to below “another cryptocurrency” is due to its main rival ethereum (ETH).

Green stated that this is because ETH “has a higher level of real-use potential” and is the “most in-demand development platform for smart contracts”.

Regarding NFTs, Green said that due to “major global sports franchises, fashion brands and household-name artists and musicians launching NFTS” the digital collectibles are seen “as a future-proof asset class”.

The poll was taken by almost 6,000 individuals on LinkedIn.

Further reading

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