Topic: In times of turmoil, is Bitcoin really a safe-haven asset? - page 4. (Read 995 times)

Yeah nothing we can do about mindset of people about bitcoin. Even though many users have adopted it, they just seen bitcoin as store of value, nothing more nothing less, some say this will replace other currency but the truth is people only using it for financial purposes such as trading. How often does bitcoin uses on establishment? Few times, just because to show how cryptocurrency is booming. But with a fixef supply has disadvantage since most people thinking is to hold it since its value can increase later on. So its not being used or utilized like what fiat and currency has been used for.

I disagree with this. Bitcoin price is not affect by where it is traded. Bitcoin price is determined by traders ( market) and traders are always hypersensitivity with news, by that way price will be affected by news.
Gold has been a standard store of value for thousands of years and it is recognized worldwide. Meanwhile no country claim that Bitcoin is a currency. Until now Bitcoin is just an asset and its value is not stable. We can see and we saw that Bitcoin price can be shock by a rumor, a fake news, or a speak of Warren 

Unfortunately, that's the harsh truth Bitcoin is facing today. It's more like a store of value than a real currency like the ones we know and love today (Fiat). Just like Gold, people tend to sell their Bitcoin in order to obtain cash for daily purchases. After all, Fiat is widely accepted among merchants and businesses worldwide than the pioneer cryptocurrency. Considering that Bitcoin is a highly-volatile cryptocurrency, it can never be a safe-haven asset that's good to use in times of turmoil. Negative events in the mainstream world will affect Bitcoin's prices in a bad way just like it's the case with stocks today.

While Bitcoin proponents have often claimed the cryptocurrency to be a safe-haven asset, yesterday it has proved them wrong. At least, 1 Bitcoin = 1 Bitcoin no matter what. In terms of Fiat, one would have to deal with the dreaded volatility until the market gains more liquidity. With ample regulations from governments worldwide, I'm sure the crypto market will mature like never before. As it's said in the real world, "Don't put all your Eggs in One Basket". Diversification is necessary if we want to survive unexpected situations in the mainstream world like the recent case of the coronavirus pandemic which has affected the worldwide economy. Just my thoughts

I think probably the reason why Fiat or gold has even become a main way of buying goods is because of its easy access. Though, we can say that Bitcoin and any other cyrptocurrency is easy to be used for transaction because it is digital, still, many people are not aware and unsure of its existence. Traditional family or standard families would still rely on Fiat to buy goods for the lockdown system. Bitcoin still remains a decentralized currency, people thinks its an investment and asset rather as something they can use everyday especially for this kind of situation. It is still a safe haven, and its quantity, quality, and price depends on the user - on how and when will he use it. It may experience this decline but let's not ignore the fact that from the very start, it is volatile. No one controls it, no one is sure of when will its demand will go down or up. Moreover, the finality here is that, the fear will cause and subject you to be realistic. If I think that it is unsafe and I might be scammed if I use Bitcoin, wouldn't I just rely on my savings account or paper money in my wallet?

The stock arket was crashing so much that they shut down and did not allow people to trade anymore. This made it seem that the stocks did not crash so much but they would if not for the external influence.

You can see how traditional markets work. They decide when you're allowed to sell or not. You're just a sheep to them.

Bitcoin is only as decentralized as the Internet. If they shut down the Internet what will you do? That's what people who sell are afraid of. The total shutdown!
Have you noticed that the biggest crash happened after Trump said that the US will close its borders?

Absolutely correct, fear contributed to the dip in price of Bitcoin and other cryptocurrency, we all know that, with Bitcoin volatility, it won't be able to stand against turmoil or epidemy. The global shift in financial institutions will at the end shift to digital currency and holders will reap the fruit of holding for long-term. The effect of this coronavirus will cause a global recession which will engulf the whole world, then maybe as the time goes Bitcoin can be a safe haven.

You certainly find it different of course when there is a crisis just like we have now. But talking about crypto as a safe haven, you can't expect to be like that coz even before we know how volatile it is. This is enough that people would like to say that only invest crypto that we can afford to lose. And for that statement alone we, therefore, conclude that safety assurance and guaranteed gains are not at 100%. This is the risk we face before then and this is also a thing we are able to face again and again in the future.

Basically Bitcoin being a volatile coin will make it not be seen as a safe haven because its dropped far more than other stocks in the market. Like gold and oil dropped and Bitcoin which was to be a safe haven dropped even worst than them. This was as a result if bitcoin volatility. We have seen is: Bitcoin isn't immune to turmoil or crisis most especially when it has to be a global thing. We'll got it wrong when we said it is immutable, though the global effect of sell off affected Bitcoin because of it volatility which we all know from the beginning. Bitcoin isnt a safe haven as it proof itself during the covid-19.

Yes, one whale, as was the case with Mr. Gox previously, having thrown into the market several batches of eight thousand bitcoins, can completely collapse the cryptocurrency market. Where does the "safe haven" go? At the same time, can such a drop occur in the gold market, even considering that the amount of gold entering the market will be approximately equal in value to the value of bitcoins then exposed? It is unlikely that the gold market in a similar situation will fall as much as with cryptocurrency.

Cryptocurrency does have the capacity of been safe haven against traditional fiat but not against conflicts, pandemics and war which could lead to panic sell their holdings.

Bitcoin decentralization doesnt mean bitcoin will be bulletproof to pandemics and a single whale which choose to save his holding by swapping it for stablecoin could cause the current dump. However, bitcoin is still somehow linked to mainstream events because it uses the internet and it exchange activities are total execute by exchange team which might be living in the region where the COVID 19 is high so the dump in price is normal.

To see the the COVID-19 being declared as pandemic, it does seem like to have a significant effect to it. What's the other thing that we could think of the cause of this crash?
However on the brighter side, Bitcoin landed almost the same crash last year except that it was below 4k before so we can still think the conclusion that the Corona Virus effect to Bitcoin is still just a coincidence although we can expect that many are panicking in other countries now.

Bitcoin did not even drop this hard within days during Venezuela crisis. There is too much fear and worry with Corona. The world is crumbling under the weight of the virus.

Basically I agree about "safe-haven" assets and don't think that the COVID-19 incident will really affect any market in the world, or maybe the collapse of the bitcoin market because of a process for the bullish market after the halving event and honestly, I still hesitant to say about the collapse of the bitcoin market because of the impact of the corona virus because everything happens simultaneously when chaos continues to increase in many sectors in the world because of this corona virus outbreak.

I think that it is not must to go ahead to take actions yet, it is better to wait a bit for the market to stabilize to trade, the COVID-19 has just declared a global pandemic, we must not forget it.

In my opinion, it is best to buy bitcoin little by little to see how it performs and accumulate everything you can, when people make nervous sales it is the best time to invest.

Yes Bitcoin is a decentralized cryptocurrency but it's price is still base on the technical and fundamental analysis and right now, the fundamentals already affected it. We saw the price decline of it few days ago.

It is and it will never be a safe haven asset. We saw already that Bitcoin is also affected with the current events right now. Bitcoin isn't a safe haven because we saw how it moves already. It went from $9k to below $5k in just a few days so how will it be a safe haven. If there is a safe haven asset, I think gold would be the one.

The COVID-19 has spread worldwide and it has created mass hysteria to most of the investors right now forcing them to sell some of their assets at a loss. This virus will just stop affecting the market if the mainstream media will stop hyping it.

I posted about this in another thread. Simply, bitcoin has the potential to be a safe-haven asset, but isn't at the moment...


To my mind, a key indicator of how far along that road to 'safe-haven' status we are will be how bitcoin reacts once the panic dies down and the recovery starts.

I would even argue that had Bitcoin been centralized, it could avoid the current price fall since there's no reason for it to go down which is not the same with other things people trade that is tied to physical things that suffer due to restrictions. However, I believe that Bitcoin can recover from this, and perhaps it won't even take that much time. Over the last hour, according to Coingecko, Bitcoin is up 7.5%. (okay, down to 6.7% already). Surely, it's still extremely low, and people did not expect that. An example of how unexpected this is can be a predictions thread due to a giveaway by Bitcasino where we had to predict today's price: https://bitcointalksearch.org/topic/bitcasinoio-predict-the-bitcoin-price-win-0025-btc-5229828.

The only safe-haven at such kind of panic is short options, money might doubled many folds during this crash. But unfortunately, during most of the time, such options will just bring loss

I'm already sending fiat to exchanges and try to grab some coins, but seems the lowest point has passed, now its on the way back

It doesn't matter if bitcoin is being traded on centralized or decentralized exchange platforms.Do you think that,if bitcoin was 100% traded on decentralized exchanges,the price crash would have been avoided?
Bitcoin is a safe heaven for the people in a country,if there is a local crisis in that country.When it comes to global events,BTC can't be a safe heaven.I don't think that even gold can be considered a safe heaven,where there is a global "plaque".

I think we all should be responsible for making Bitcoin and other cryptocurrencies safe haven.
If everything dies down today, I bet people will go back to their old ways. When the old way results to crashes , people will complain again,and it happens over and over again.
I wish people could stop being greedy/selfish and start doing things properly. The Right thing should be done absolutely! Decentralization, Transparency, immutablity, censorship resistant permissionless/trustless transactions, etc. We must try as much as possible to avoid things that will lead to problems in the future. Safe haven should be made of things that can survive worst disasters... I would seriously recommend things like foods(not "centralized food"), smale/medium scale farming implements, decentralized internet, first aid box, survival information, torch, more of natural things, mobile homes, mobile hospitals, mobile industries, inverters, etc. Crypto communities should produce and trade these things, even on decentralized exchanges. They should be continously traded like we normally trade cryptocoins. When disasters hit, lots of people in centralized world will have no option than to join our world and that will be good for price. I will definitely buy alots of cryptocoins that are specifically designed for such assets. And it would be fun to diversify into multiple assets