For many, bitcoin is hedge against inflation. But it's also a safety play for a world where old ideas about economics are up in the air.
Just because gold is losing momentum and bitcoin is gaining it doesn't mean investors are selling gold to buy bitcoin – not yet, anyway.
Drastic measures are being taken by the Federal Reserve as Wall Street reels from fresh predictions of a steep drop-off in economic output due to coronavirus-related lockdowns, business disruptions and job losses.
After the past week, bitcoin will never again be considered a safe haven investment, argues Noelle Acheson. And that’s not a bad thing…
Bitcoin fell 40 percent this week from coronavirus shocks, but it's still seen as a safe haven in the Middle East.
“I don’t think any asset is safe right now – except cash, U.S. dollars.”
CoinDesk's Noelle Acheson points out the real narrative shift is in the broader market, not bitcoin.
Bitcoin is often lumped in risky assets like growth stocks, high yield debt, high beta ETFs, venture capital, and emerging markets. In fact, it has many hallmarks of a safe haven in a crisis.
As U.S. stocks tumbled on Monday by the most in six months amid renewed coronavirus fears, bitcoin barely budged - at least in terms of the notoriously volatile cryptocurrency’s trading history.