Crypto is a cover for 46% of Russian retail investors, poll finds

Nearly half of retail investors in Russia believe cryptocurrencies like Bitcoin (BTC) are a hedging asset associated with stable earnings, according to a new survey.

Financial publication surveyed 1,000 Russian retail investors to find out what types of alternative investments are most in demand.

According to a investigation out of 1,000 Russian retail investors per, up to 46% of respondents viewed cryptocurrencies as a potential defensive asset that allows them to hedge against financial risks in times of economic crisis.

Russian retail investors preferred crypto over real estate, as only 37% of respondents investing in alternative assets viewed buying real estate as an effective investment vehicle.

Real estate has historically been the main hedging asset in Russia, according to Anastasia Kosheleva, head of the Russian division of She noted that cryptocurrencies have become the biggest investment trend in 2021, as they have overtaken other traditional assets, including currencies and stocks in foreign currencies.

Among many cryptocurrencies, Bitcoin is apparently the most popular alternative investment for Russians. According to a to study By the Big Data Brand Analytics platform, Bitcoin was the most popular cryptocurrency in Russia in October, overtaking coins like Tether (USDT) and Litecoin (LTC) in terms of social media mentions.

Cryptocurrencies have become increasingly popular among Russian investors in recent years, with 77% of Russian investors preferring Bitcoin over gold in a survey last year.

Last week, the Bank of Russia released a financial stability report, noting the country’s growing role in the $ 2.8 trillion global cryptocurrency market. The central bank mentioned that Russia ranks third in the world in terms of domestic BTC hash rate and is one of the biggest users of the Binance cryptocurrency exchange.

Related: Inflationary winds around the world mark sea change for Bitcoin

Amid rising inflation and the ongoing COVID-19 pandemic, global investors are increasingly turning to cryptocurrencies like Bitcoin as a hedge against financial risk.

According to Damian Courvalin, head of energy research at Goldman Sachs, investors have increasingly hedged themselves against inflation by using crypto in addition to traditional assets like gold. “Just as we argue that silver is the poor man’s gold, maybe gold is becoming the poor man’s crypto,” he said. noted in mid-November.

Previously, Pendal Group’s Head of Alternative Duration Strategies, Vimal Gor, argued that cryptocurrencies should be added to new alternative defensive portfolios, as government bonds have lost their value as a hedge against risk.

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