Nearly half of retail investors in Russia believe cryptocurrencies like Bitcoin (BTC) are a hedging asset associated with stable income, according to a new study.
Investing.com asked 1,000 Russian retail investors to find out what types of alternative investments are most in demand.
According to the survey, up to 46% of respondents viewed cryptocurrencies as a potential protective resource that allows them to hedge against financial risks during the economic crisis.
Russian retail investors preferred cryptocurrency over real estate, while only 37% of respondents who invested in alternative assets considered buying real estate an effective investment tool.
According to Anastasia Koshleva, Head of Russia, Investing.com, real estate has historically been the most important security tool in Russia. She noted that cryptocurrencies have become the biggest investment trend in 2021, surpassing other traditional assets including foreign exchange and stocks.
According to research by big data platform Brand Analytics, Bitcoin was the most popular cryptocurrency in Russia in October and performed better than coins like Tether (USDT) and Litecoin (LTC) in terms of social media.
In recent years, cryptocurrencies have become increasingly popular among Russian investors: according to last year’s survey, 77% of Russian investors prefer bitcoin over gold.
Last week, the Bank of Russia published a financial stability report that highlighted the country’s growing role in the global cryptocurrency market in the amount of $ 2.8 trillion. The central bank has stated that Russia has the third largest national BTC hash rate in the world and is one of the largest users of the Binance crypto exchange.
Related Topics: Rising Inflation Globally Driving Radical Changes to Bitcoin
With rising inflation and the ongoing COVID-19 pandemic, global investors are increasingly looking at cryptocurrencies like Bitcoin as a hedge against financial risk.
Investors are increasingly protecting themselves from inflation by using cryptocurrencies in addition to traditional assets like gold, according to Damien Kurvalin, head of energy research at Goldman Sachs. “Just as we argue that silver is gold for the poor, perhaps gold will be the cryptocurrency for the poor,” he said in mid-November.
Vimal Gur, head of alternative futures strategies at Bendal Group, previously argued that cryptocurrencies should be added to new alternative defensive portfolios as government bonds lose value as a hedge against risks.