Is Bitcoin a Safe Haven Asset?

March 16, 2018

bitcoin-safe haven asset

Bitcoin is highly volatile and that is no secret. This characteristic alone can make it feel like a not so safe-haven kind of asset. Open, 24 hours a day, 7 days a week for trading, bitcoin and the trading of alt coins comes with its own stresses and dramas vs. it’s potential value.

“Traditional assets like gold have a lot more liquidity Bridges and gateways that facilitate flows to and from stocks, bonds, and ETFs,” noted Mati Greenspan, senior market analyst for social trading platform eToro. “Bitcoin doesn’t have that framework in place just yet,” which makes it more difficult for investors to take money out of stocks, for example, and put them in to the digital currency. Is Bitcoin appealing during times of distress? Is Bitcoin Still A Safe-Haven Asset?

Bitcoin’s High Volatility While there are many reasons noted by Forbes why Bitcoin is failing to function as a safe-haven asset may be these reasons including significant change in investor base. As time goes on and the market matures with a new wave of investors into bitcoin, the better it is for the entire cryptocurrency industry. “This new investor helps to establish a stronger Bitcoin market and adds legitimacy to the Cryptocurrencies as a whole.”

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What is Bitcoin?  Bitcoin is a digital currency created by Satoshi Nakamoto in 2009 that uses decentralized blockchain technology for secure payments and storing money that doesn’t require banks or names. The name also refers both to the open source software Satoshi designed to make use of the currency and to the peer-to-peer network formed by running that software.  Bitcoin was announced on an email circular as a way to liberate money in a similar way to how the internet made information free.  Is Bitcoin the future of currency? Is it currency at all? What is it for? And should I buy some? These are some the answer the future blog posts of Quantaloop Blog and the Quantaloop Academy will answer.

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