Topic: Bitcoin is a Bad Safe Haven Asset (Read 834 times)
I really don´t understand why it has t be a fight of Bitcoin vs. e.g. gold. If you build a healthy portfolio with an appropriate risk management you can easily add both to your account. Never put all eggs in one basket, and that also means Bitcoin doesn´t even need to be a safe haven, but a perceived valuable asset that people can trust.
You're right I think they lack enough knowledge about Bitcoin so they are calling Bitcoin bad They never talk about this when they know about bitcoin investing Bitcoin is at the top of the crypto market Bitcoin is no longer a lucrative currency. The price of other currencies increases depending on Bitcoin Bitcoin is very good for the future and the demand of the crypto market is increasing for bitcoin It is possible to achieve double profit in long term investment but we have to wait patiently for that.
Bad safe heaven? I guess OP is among those cryto newbie who always buy high and expect the price of bitcoin to go high after buying, bitcoin hits an all time high of $10000+ during the last 3-4 months of the pandemic, if you had bought around $4k that's a nice return regardless of the volatility, just buy and hold bitcoin till next year this time (post halving) and will understand what I'm trying to say
Maybe he confuses with the bitcoin price is always change every day, so he says that bitcoin is a bad safe-haven asset. I think he needs to search for more information related to bitcoin and about investing itself. If he wants to use something as his investment, he needs to have knowledge and information before using his money to buy the asset. He doesn't need to buy at a high price if he has the knowledge because we can buy bitcoin at a low price and hold it for a while. By doing that, I am sure that he will not think that bitcoin is a bad safe-haven asset.
Bitcoin is a digital currency, it is 21 million supply only when supply is slow demand is increasing. Bitcoin is gold safe haven assest. Future payment currency, it is also world no.1 currency.
During the financial crisis due to the COVID-19 pandemic, Bitcoin and Altcoin were bad safe haven assets. Cryptocurrencies are not seen as safe haven assets equivalent to gold, US dollars or state debt obligations. As a result, crypto assets tend to be insecure from recession shocks.
There are two requirements that must be met in order for an asset to be an effective safe haven,
First, the volatility (level of up and down) the value of assets must be low. Second, when market volatility surges, the value of assets must increase.
Although in the current crisis, the trading volume of crypto assets is increasing, it merely compensates for the value of other declining assets, such as stocks,
There are two requirements that must be met in order for an asset to be an effective safe haven,
First, the volatility (level of up and down) the value of assets must be low. Second, when market volatility surges, the value of assets must increase.
Although in the current crisis, the trading volume of crypto assets is increasing, it merely compensates for the value of other declining assets, such as stocks,
Bitcoin BTC could perhaps the best performing class of investment this decade. That being said, we cannot deny that it could potentially be a safe haven.
However bacause of these factors, it might be reason to cause as bad investment for some; first, bitcoin derivatives were introduced to the market of bitcoin like Bakkt, ETF, GrayScale and etc. Investors here are stocks oriented so during COVID 19 when economy falls in comparison to other stocks and indexes, it is expected that Bitcoin will react the same way.
Second, impact of bitcoin small market caps -swing price are present in the market in the condition that it could spell market being easily prone by any manipulations,
and third, "adoption", simply the way we think and everyones ideal in this forum, use-case and scarcity could mean more market intervention.
If only this mentioned lacking and disadvantages may improved; I think, bitcoin is entirely investors' financial haven.
Take a look only Bitcoin and other cryptos compare to any form of financial instrument - as an asset class - could be classified into the market in its inherent characteristic and that is being scarce in real system. Safe haven is also seen in larger scale which mean 20 to 40 years in counting from now
During the financial crisis due to the COVID-19 pandemic, Bitcoin and Altcoin were bad safe haven assets. Cryptocurrencies are not seen as safe haven assets equivalent to gold, US dollars or state debt obligations. As a result, crypto assets tend to be insecure from recession shocks.
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Was BTC created to be a safe haven? I do not think so.--
To get profit from cryptocurrency, one must know the exact timing when to enter and when to exit. If it's too late to enter or exit the market so that it loses, then it's a risk.
Don't look at this with a narrow perspective, let alone just refer to the pandemic lately. But try to look at it from a broader perspective, going back ten years ago, even though the decline occurred during the pandemic, it still has a fantastic price compared to ten years ago, right?
Bad safe heaven? I guess OP is among those cryto newbie who always buy high and expect the price of bitcoin to go high after buying, bitcoin hits an all time high of $10000+ during the last 3-4 months of the pandemic, if you had bought around $4k that's a nice return regardless of the volatility, just buy and hold bitcoin till next year this time (post halving) and will understand what I'm trying to say
If bitcoin is used for daily trade or short-term investment it is certainly very bad as a safe haven. Because bitcoin prices are volatile
making it a high risk for short-term investment. But if bitcoin's long-term investment is very good as a safe haven asset, proven bitcoin
prices in 2009 compared to 2020 is very good if used as a long-term investment. Even in my opinion if compared to gold, bitcoin is still
far better for long-term investment.
making it a high risk for short-term investment. But if bitcoin's long-term investment is very good as a safe haven asset, proven bitcoin
prices in 2009 compared to 2020 is very good if used as a long-term investment. Even in my opinion if compared to gold, bitcoin is still
far better for long-term investment.
if its bad for short term then you shouldnt have to include the word safe haven with it but you can just termed it bad investment right away .
being risky means it applies on both short and long term . you can use the volatile effect of btc to earn on shorter terms so i dont consider it as a disadvantage but i dont know about you . if you have no balls then just stick on long term investment as that is less risky .
Price and volatility shouldn't be the only characteristics of "an asset" to be considered as a "safe haven" in my opinion. Venezuala had their "safe haven" in gold held by a London bank, and the bank won't give it back to them. Not your vault, not your gold.
Not every safe haven asset has all of the characteristics that describe "ideal" safe haven asset. According to https://www.ig.com/us/trading-strategies/what-are-safe-haven-assets-and-how-do-you-trade-them--181031 an ideal asset should has following characteristics to be considered safe haven:
Quote
Liquidity: the asset needs to be easily convertible to cash, at any time
Functionality: the asset needs to have a use that will continually provide long-term demand
Limited supply: the growth of supply should never outweigh the demand
Certainty of demand: the asset is unlikely to be replaced or become outdated
Permanence: the asset should not decay or rot over time
Functionality: the asset needs to have a use that will continually provide long-term demand
Limited supply: the growth of supply should never outweigh the demand
Certainty of demand: the asset is unlikely to be replaced or become outdated
Permanence: the asset should not decay or rot over time
Bitcoin currently has 4 out of 5 characteristics and can be considered safe. What it doesn't have yet is "certainty of demand", that is why bitcoin is volatile, meaning that its price fluctuates i.e. price is still being discovered.
That, according to their "definition". I believe we need another point of reference.
As Bitcoiners, or people trying to look for a "safe haven", the separation of money and state ethos in the Bitcoin community, and Bitcoin having the properties to support this ethos within, is sufficient.
If bitcoin is used for daily trade or short-term investment it is certainly very bad as a safe haven. Because bitcoin prices are volatile
making it a high risk for short-term investment. But if bitcoin's long-term investment is very good as a safe haven asset, proven bitcoin
prices in 2009 compared to 2020 is very good if used as a long-term investment. Even in my opinion if compared to gold, bitcoin is still
far better for long-term investment.
making it a high risk for short-term investment. But if bitcoin's long-term investment is very good as a safe haven asset, proven bitcoin
prices in 2009 compared to 2020 is very good if used as a long-term investment. Even in my opinion if compared to gold, bitcoin is still
far better for long-term investment.
A safe haven should be something that you can rely on during the time of great need e.g during the pandemic crisis, btc was seriously down in price while fiat was able to sustain people through this crisis, in fact, people where more in need of cash to provide sustainance during this period than btc, even now there is still a huge need of fiat, people need jobs to earn money (fiat) to provide for their families,
So from this perspective, I do not think btc can serve as a safe heaven or served as a safe haven during this period which was suppose to be the testing period for btc and how well it can serve as safe haven in a time of crisis.
So you problem is that you are not able to spend bitcoin in stores for your daily needs, there are many stores in the US and Europe that accepts bitcoin and if you are particular about spending your money in bitcoin then you are able to do so as many retail stores and restaurants are accepting major cryptocurrencies. If your country does not have that many stores accepting them it will get accepted eventually. If your investment in bitcoin is because you think as a safe heaven then it is a completely different story.So from this perspective, I do not think btc can serve as a safe heaven or served as a safe haven during this period which was suppose to be the testing period for btc and how well it can serve as safe haven in a time of crisis.
If there are not so many stores that accept Bitcoin the solution might be Bitcoin debit card. I have one for a long time, it works perfect and I don't have to think if the merchant acceptc Bitcoin or not.
Another thing, when you take into consideration risks and volatility that are part of Bitcoin I don't know how anyone can think that it's a safe heaven.
During the financial crisis due to the COVID-19 pandemic, Bitcoin and Altcoin were bad safe haven assets. Cryptocurrencies are not seen as safe haven assets equivalent to gold, US dollars or state debt obligations. As a result, crypto assets tend to be insecure from recession shocks.
There are two requirements that must be met in order for an asset to be an effective safe haven,
First, the volatility (level of up and down) the value of assets must be low. Second, when market volatility surges, the value of assets must increase.
Although in the current crisis, the trading volume of crypto assets is increasing, it merely compensates for the value of other declining assets, such as stocks,
There are two requirements that must be met in order for an asset to be an effective safe haven,
First, the volatility (level of up and down) the value of assets must be low. Second, when market volatility surges, the value of assets must increase.
Although in the current crisis, the trading volume of crypto assets is increasing, it merely compensates for the value of other declining assets, such as stocks,
Op,this topic has been discussed so many times.I don't see a reason why we should repeat the same thing over and over.Nobody is saying that cryptocurrencies are a good safe heaven.Maybe only some crypto trading newbies are thinking that Bitcoin and altcoins might be a safe heaven.Anyway,according to some statistics,Bitcoin is outperforming gold and stocks as the most profitable asset for 2019,as far as I remember.
So Bitcoin isn't a safe heaven,but it's a pretty good asset to put your money in.
Bitcoin is not a bad safe-haven asset. It all depends on the skill of investing in it and the strategy of patiently preserving it. Bitcoin is certainly not an asset in a stable safe haven like gold but it is a trade asset. Each type of asset has its own characteristics and because of this, there are differences between these assets. Bitcoin is a relatively volatile asset and if you can't invest in it properly and at the right time, it must not be considered a safe haven for you. So in my opinion Bitcoin may be considered a safe asset for you if you decide to make a long term investment but if you use it for trading, it is not a safe haven asset like gold and other assets.
It seems to me that this is all temporary and the future is definitely with digital assets, but whether Bitcoin specifically will become one, of course the question is. Although I personally - believe
A safe haven should be something that you can rely on during the time of great need e.g during the pandemic crisis, btc was seriously down in price while fiat was able to sustain people through this crisis, in fact, people where more in need of cash to provide sustainance during this period than btc, even now there is still a huge need of fiat, people need jobs to earn money (fiat) to provide for their families,
So from this perspective, I do not think btc can serve as a safe heaven or served as a safe haven during this period which was suppose to be the testing period for btc and how well it can serve as safe haven in a time of crisis.
So you problem is that you are not able to spend bitcoin in stores for your daily needs, there are many stores in the US and Europe that accepts bitcoin and if you are particular about spending your money in bitcoin then you are able to do so as many retail stores and restaurants are accepting major cryptocurrencies. If your country does not have that many stores accepting them it will get accepted eventually. If your investment in bitcoin is because you think as a safe heaven then it is a completely different story.So from this perspective, I do not think btc can serve as a safe heaven or served as a safe haven during this period which was suppose to be the testing period for btc and how well it can serve as safe haven in a time of crisis.
If many people consider btc as safe heaven then why many people will cash out to FIAT or some stable coins! They should leave it as it is, safe heaven should be stable, btc is not, you can only gain profit with btc but not consider it as safe heavn.
A safe haven should be something that you can rely on during the time of great need e.g during the pandemic crisis, btc was seriously down in price while fiat was able to sustain people through this crisis, in fact, people where more in need of cash to provide sustainance during this period than btc, even now there is still a huge need of fiat, people need jobs to earn money (fiat) to provide for their families,
So from this perspective, I do not think btc can serve as a safe heaven or served as a safe haven during this period which was suppose to be the testing period for btc and how well it can serve as safe haven in a time of crisis.
So you problem is that you are not able to spend bitcoin in stores for your daily needs, there are many stores in the US and Europe that accepts bitcoin and if you are particular about spending your money in bitcoin then you are able to do so as many retail stores and restaurants are accepting major cryptocurrencies. If your country does not have that many stores accepting them it will get accepted eventually. If your investment in bitcoin is because you think as a safe heaven then it is a completely different story. So from this perspective, I do not think btc can serve as a safe heaven or served as a safe haven during this period which was suppose to be the testing period for btc and how well it can serve as safe haven in a time of crisis.
Bitcoin and other cryptos even became stable and performed better during this crisis. If that's what you think that it's not a safe haven, you believe that. We're on a pandemic and this determines that cash is king. But once this pandemic ends, you'll see that bitcoin will have an unexpected jump once the injected money by US comes in to the market. You consider whenever that jump happens if it's a good safe haven or not but wait until this crisis is done.
A safe haven should be something that you can rely on during the time of great need e.g during the pandemic crisis, btc was seriously down in price while fiat was able to sustain people through this crisis, in fact, people where more in need of cash to provide sustainance during this period than btc, even now there is still a huge need of fiat, people need jobs to earn money (fiat) to provide for their families,
So from this perspective, I do not think btc can serve as a safe heaven or served as a safe haven during this period which was suppose to be the testing period for btc and how well it can serve as safe haven in a time of crisis.
OP doesn't mean to call it a bad but meant unsafe haven asset. Which to some extent is true considering it's volatility.
I love bitcoin and is bullish about it. But still I don't have all of my savings on bitcoin. It's not that I don't trust bitcoin, but I'm afraid of the volatility as I might need to get it cashed out before I intend to. Stable coins should have been safer but the problems within them is not bringing the feeling of safety from the inside.
I love bitcoin and is bullish about it. But still I don't have all of my savings on bitcoin. It's not that I don't trust bitcoin, but I'm afraid of the volatility as I might need to get it cashed out before I intend to. Stable coins should have been safer but the problems within them is not bringing the feeling of safety from the inside.
Bitcoin might not be a "safe haven" asset right now, but it is becoming one. Those who have the forsight to see that will reap great rewards.
Bitcoin is always a safe investment and even now you can blindly invest in bitcoins now and see the results in 2 years. This does not mean that alts are also safe heavon. Alts and crypto other than bitcoin is a risky investment.
This is kinda debatable. It is worst for those who invested way back 2017 (during the peak of the Bitcoin hype) and best to those who invested on early 2019. Bitcoin due to its high volatility can be said as not a good choice as Safe Haven Asset, a long term investment probably but not as Safe Haven so to speak because its real price is yet to be discovered as said of one of the early replies.
Bitcoin might not be a "safe haven" asset right now, but it is becoming one. Those who have the forsight to see that will reap great rewards.
Bitcoin is always a safe investment and even now you can blindly invest in bitcoins now and see the results in 2 years. This does not mean that alts are also safe heavon. Alts and crypto other than bitcoin is a risky investment.
This is kinda debatable. It is worst for those who invested way back 2017 (during the peak of the Bitcoin hype) and best to those who invested on early 2019. Bitcoin due to its high volatility can be said as not a good choice as Safe Haven Asset, a long term investment probably but not as Safe Haven so to speak because its real price is yet to be discovered as said of one of the early replies.
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