Post
Topic
Board Bitcoin Discussion
Re: In times of turmoil, is Bitcoin really a safe-haven asset?
by
camito
on 14/03/2020, 02:13:06 UTC
I've seen how mainstream events like the coronavirus "COVID-19" and the downfall of the stock market, has negatively impacted Bitcoin's price across the crypto market. For a cryptocurrency that's been hailed as a safe-haven against traditional Fiat, it's been doing otherwise. Gold has been performing better than Bitcoin and other cryptocurrencies combined. It's odd to see something like this happening today since Bitcoin is a decentralized cryptocurrency. This should make it "immune" from real-world events whatsoever. Bitcoin's latest decline in price has shown us that the cryptocurrency is still linked to mainstream events. It's probably because Bitcoin is often traded on centralized exchanges than decentralized ones. As long as it stays that way, Bitcoin will never be able to become a "safe-haven" asset in times of turmoil. Or am I wrong?

What are your thoughts? Huh

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?