• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Sensei Inu Logo Sensei Inu Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Breaking News: Breaking: Bitcoin Repayment Plan Gets New Deadline From Mt. Gox Trustee
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: Bitcoin Repayment Plan Gets New Deadline From Mt. Gox Trustee
Why Bitcoin 'Cannot be a Reliable Safe-Haven Asset'?

Why Bitcoin ‘Cannot be a Reliable Safe-Haven Asset’?

Christine Vasileva by Christine Vasileva
4 years ago
in Bitcoin Investment, Bitcoin, News, News teaser
0

Bitcoin (BTC) shed as much as 50% of its price within 24 hours, going through massive liquidations in what looks like a capitulation event. Yet BTC still has some characteristics of a safe haven asset.


Bitcoin Unreliable Due to Unpredictable Days of Trading Anomalies, Panic Selling

BTC is unreliable in the short term due to the unexpected days of either massive gains or losses. Yet owning Bitcoin in the past decade has shown its potential to offset other economic risks. Now, BTC is entering a period of heightened volatility, losing trust as remaining stable enough. But overall, Bitcoin can have features that may be useful during crisis times for traditional assets.

“Generally speaking, Bitcoin has moved in ways that seem to reflect what’s happening in the broader market. But there are exceptions — entire years that don’t fit this pattern. The data suggests that over the years Bitcoin has occasionally performed as an effective alternative to traditional markets,” shows the most recent Longhash analysis.

bitcoin price DJIA correlation

Overall, money flowing into Bitcoin reflected confidence in the overall economy. Exceptions included 2014, when the fallout of the Mt. Gox failure depressed prices for a year. Yet BTC can be viewed as a still novel asset in a phase of discovery, with any price moves possible.

The influence of liquidations on the futures market also makes Bitcoin less reliable. The asset does not have an emergency switch, except for occasional technical emergencies on exchanges.

BTC May be Safe Haven in Developing Countries

Bitcoin was not a safe haven in the sense of money flowing into the markets while other assets tanked. One of the reasons for that may be logistics – even retail investors cannot move so fast to stock up on BTC. Yet there is a side to Bitcoin which looks like potentially working at times of crisis. The top cryptocurrency, however, has been used locally to offset other lagging markets. During the bull market of 2017, Korean investors moved into crypto assets, to offset lagging local markets. For others, Bitcoin was a speculative one-off chance.

The recent selling also showed that BTC could offer a fast source of emergency funds, even if sold at lower prices. Holding some BTC coins is also an alternative payment tool, as the Bitcoin network has not closed during the sell-off.

Bitcoin is also relatively safe in countries where local currencies are even more volatile and unreliable. The leading coin has worked to offset inflation and weak currencies in Venezuela, Iran, and in part, Turkey. BTC may be much riskier in comparison to stock indexes in developed economies but may work to offset economic lags in developing countries.

bitcoin a boon for developing countries
bitcoin a boon for developing countries

The usage of BTC is also a source of unofficial dollarization. And since price discovery is happening in advanced economies, holders of BTC may also benefit from a higher economic standard. LocalBitcoins is also showing anomalies in price discovery, where BTC shoots to extraordinary price peaks as an offset against local monetary and economic risks.

What do you think about the latest Bitcoin crash and the short-term loss of safe-haven status? Share your thoughts in the comments section below!


Images via Shutterstock, LongHash

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Christine Vasileva

Christine Vasileva

Christine Vasileva is a financial news and business writer, tracking the latest developments in fintech and the effect of blockchain and crypto-assets on global business and finance.

Related Posts

Bitcoin

Bitcoin Miners On The Defensive: Market Uncertainty Spurs Revenue Diversification – Analyst

2 hours ago
Bitcoin

Bitcoin Roadblock Unveiled: Analyst Identifies Barrier Faced By The Top Crypto

15 hours ago
Bitcoin ESG

Bitcoin Is The Ultimate ESG Asset, Expert Validates

21 hours ago
Upbit

Upbit’s Dark Hour: Fake APT Tokens Wreak Havoc In South Korea

1 day ago
Barclays

Crypto Investor Barclays Announces Closure Of UK Accounts For British Expats

2 days ago
Friend.tech

New Report Dives Into The Good, The Bad, And The Ugly Side Of Friend.Tech

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit

Press Releases

  • Pepe Coin Price Continues To Decline, Kangamoon and Shiba...

    30 mins ago
  • Polygon (MATIC) and Ripple (XRP) are in the Recovery Mode...

    38 mins ago
  • Imagine Buying Bitcoin at 20 cents! Gold Coin on the rise

    1 hour ago
  • The Growing Traffic to the Scorpion Casino Presale Hints at...

    4 hours ago
  • VeChain (VET) and Avalanche (AVAX) Market Dilemmas: New...

    10 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.