Bitcoin Forum

What is a safe haven asset?A safe-haven asset is a financial instrument that is expected to retain, or even gain value during periods of economic downturn (https://www.ig.com/en/trading-strategies/what-are-safe-haven-assets-and-how-do-you-trade-them--181031).In other words a safe haven asset is expected to retains it's value during economic crash/instability.There are several assets that have been identified by investors as a safe haven asset;Gold, Government bonds, US dollar, Japanese yen, Defensive stocks etc.
Over the years Bitcoin has been identified and recognized as a safe haven asset for investment.Bitcoin which is often referred to as a "Digital Gold" is a digital asset that retain it's value and even increase in value during economic instability.Since Bitcoin isn't backed up by government or any central controlling authority most investors haven't identified Bitcoin to as safe haven asset in their investment portfolio.For the fact that Bitcoin retain it's value and beyond during economic crash it's a safe haven asset to me.It's important for an investor to carry out research on any safe haven asset before investing,even if they are called safe haven asset doesn't mean they don't have their unique risk,so research should be done effectively as every investor have their different investing goal and risk tolerance.
Features That Qualifies Bitcoin As A Safe Haven Asset
1.High Liquidity: Liquidity is the ability to convert your asset into other assets or cash.An investment must have a high liquidity which guarantees quick transactions and market growth.With the high liquidity in Bitcoin transaction it makes it a store of value and a safe haven asset.
2.Limited Supply: Bitcoin supply is limited,it has a fixed supply of 21 million BTC to be mined.The law of supply and demand states that when the supply outweigh the demand the value of the currency is depreciated and loses its value but when the demand outweigh the supply the currency retains it's value, that's why the value of Bitcoin is maintained because of it's limited supply.
3. Continuous Demand:An investment must maintain a continuous demand for it to be a store of value and a safe haven asset.The continuous demand of Bitcoin makes it a store of value and promotes it adoption.
4.Permanence:An asset is considered a safe haven asset when it can't be destroyed physically for instance Bitcoin.Bitcoin can be stored for years in a wallet without any form of decay or rot.
My fellow Nigerians let's discuss,what's your take on Bitcoin as a safe haven asset.

Bitcoin dey very volatile, so me i no go consider am to be a safe haven asset, its price dey fluctuate well well and e no dey retain its value for a long time, it is usually up and down. Look at Gold for example, it is a proper safe haven asset, e no go give you the kind of ROI wey you go get from bitcoin, but e dey retain its value, even during market decline.

Bitcoin is still an asset that is somewhat new, so prolly sometime along the line, its volatility could reduce and it might be considered a safe haven asset then, but for now it isn't. BTW, all the features you mentioned isn't what qualifies an asset as safe haven.

Gold was $1835 or higher in 2011, it was $1061 in 2015. Its price was less than $1200 in 2018 before there was much increase again and got above $2000. Not at over $2300. But we should expect what that happened in 2011 to 2015 to happen at anytime. Yet gold is referred to as safe haven because if you hold the gold while losing, you will still make profit later. Also that gold price is less volatile.

Bitcoin can be speculative asset in short term, but it has proven several times that it is also a store of value in long term. Example is El Salvador that first bought bitcoin around $50000, bitcoin fell to $15560 or so but they keep buying it. Bitcoin now is at $61000, which means they did not sell while losing but making money now in long term holding.

Bitcoin being volatile is even one of the major reason why it is considered as a safe haven asset because I think if Bitcoin wasn't volatile there would have been no bull moment.Investor can also take advantage of the volatility to accumulate more Bitcoin,so it can also be seen as a benefit.Just like you mentioned Gold as a proper safe haven asset do you also know it has it's own unique risk just like you consider volatility as a risk.
If all the features I mentioned isn't what qualifies an asset as safe haven then you can list yours that's why it's called a discussion.

Bitcoin has an inherent volatile nature which makes it unique, it helps you to know when to buy and when to sell. Op referring to bitcoin as a safe heaven is because it's an edge against inflation, especially in third world countries with failing economy.

https://www.talkimg.com/images/2024/05/12/1ZcVz.png

For example, in 2009 in Nigeria when Bitcoin was launched, one dollar was N145 naira. With N145 naira, you could literally buy more than one Bitcoin because the price wasn't up to a dollar back then but today N145 cannot even buy you a square meal. For someone who bought and held Bitcoin over the years, he'd not feel the economic hardship because even as inflation is increasing and the purchasing power of naira is declining, the price of Bitcoin is also increasing. So Bitcoin can be regarded as a safe haven.

Any assest wey dem dey call safe haven asset na that assest wey people dey always won buy no matter even when our economy no dey do well or balance, just like the way our Naija economy be, and that asset value go dey increase in price over time. Those kind assest them if you buy them no go run at loss when the keep an with you for a very long period of time, instead you go make plenty gain from them.

Of which bitcoin fall under this category, and I know say with time as many countries don dey get their bitcoin ETF, and many countries government don see the future of bitcoin. Soon we go hear say bitcoin don turn safe have because e get the quality wey safe haven assets get.

I must tell you the truth there is nothing like a safe heaven. No one knows what the future would be, calling Bitcoin a safe heaven is like saying there is nothing that could possibly go wrong if we invest in Bitcoin. Investment is a risk and there is risk in investing in Bitcoin as an asset. The reason why Bitcoin is the most preferred asset that is being preached about to invest in is because it has proven itself over the years to not fail. And people who had invested in it has gotten good profit since the existence of Bitcoin.

I don't see any reason to think of bitcoin as heaven it is actually cryptocurrency and if you hold it long term you will get more profit than you expect. Bitcoin can be used as a hedge when the value of traditional assets declines due to various economic negative effects. Most investors, except those with a volatile nature, have made huge profits holding Bitcoin and many are calling it the next generation cryptocurrency.

No be ROI or bull market we dey talk about here, this topic is about what is a safe haven asset or not, and a safe haven asset na one wey fit retain its value when there is a market decline or global economic crisis, and i no think say bitcoin don pass that test yet, part of the reason for that is that it is a relatively new asset. Gold has been around for a very long time, and e don prove say e fit retain its value, even in a global crisis.

Well, it is good that we try to clarify things like this to those who are still new to these things so they can see the most realistic aspect of the bitcoin and cryptocurrencies. Like most platforms, the Bitcoin technology has its ups and downs too and people are working towards understanding the uptrend of the market so as to protect her assets.

Like you mentioned, invest comes with risks and likewise in the bitcoin technology. It is not MMM where people make quick money without undergoing the pain of taking such investment risks. The opportunities in the crypto technology are enormous but we must advocate more about people learning the rigorous process of investing, through the DCA approach and Lumpsum.

That's indirectly saying the same thing bro, although I understand the point at which you are driving at and I would relate it with the context and meaning behind this quote " nothing lasts forever" because thats the only thing I do consider whenever I see discussions like this because that's the only possible point I can hold to seeing that anything bad could happen to Bitcoin but other than that Bitcoin has lived and served and it's still serving so I guess it's not all wrong to relate it as a safe heaven.

I love the part you mentioned profit since existence but let’s be realistic, not everyone will even enjoy the benefit cause bitcoin investment is not an easy investment so an investor should not think because someone else invested and earn profit someone else can earn without understanding bitcoin investment . Aside the volatile market people get scared of what’s really the problem cause I don’t understand. When an asset is considered as a safe haven, you see demand endless, ability to regain value after an event. Inflation can’t affect bitcoin so what’s stopping bitcoin from being a valuable investment choice although no investment is risk free likewise other investment. From my opinion generally no investment is worth answering a safe haven, we can’t really tell 10 years from now what bitcoin investment will look like but, for the fact we hold and invest bitcoin remains a valuable investment.

For this direction wey you don take the matter to, bitcoin is really a save haven asset because bitcoin no dey chop inflation like fiat and the risk wey dey untop bitcoin dey very minimal. Plenty people don lose wetin no good untop other coins  but I no sure say e get person wey go bit him chest say  him lose money untop bitcoin unless say him wan hammer sharp sharp.

If person but bitcoin come hold am for a long time, the person go must collect because we don see say bitcoin dey always deliver on long term levels. People we buy 2022 toll date dey sit untop money we long now because from that time till now, bitcoin don vomit better profit.

For me na bitcoin any time any day because na there my mind go rest say I do investment. I fit buy bitcoin go sleep with my two eyes closed because I know say I no go hear story say e dump or him swallow python come die.

And I no mention ROI,na features of Bitcoin wey make am safe haven asset for investment nai I mention,ok you talk say safe haven asset na asset wey dey retain e value even in the state of market decline or crisis,oya make I ask you one question bitcoin dey lose e value during market crisis?if de answer na NO then Bitcoin na safe haven asset.E no matter how long the asset don stay for the world for the fact say em dey retain it's value during economic crisis na safe haven dem dey call am.

Bitcoin is an opportunity to grab but most people failed to understand the whole basis that follows with bitcoin investment, they tend to see it as ponzi scheme. Bitcoin risky die, if your skin no full, no put body oh, I just de give my own advise. I've encountered enough problems and complaints from my colleagues this year and in the past. We should always know what's best for us and not run into investment just because our friends is involved in the system. We should grind harder to obtain solid path to follow.

Bitcoin is risky but I advise one to take the risk because it's a sfe heaven investment assets, if you have 1 Bitcoin you can use it to start up many things in this country despite the challenges we are having concerning crypto currency exchanges. One things for sure is our government fails to see the better sides of Bitcoin because they are scared bitcoin will take over fiat just like the MFB has taken over the banks. Crypto is risky but Bitcoin is not risky, if you know the difference it means you already know best. I can't tell someone not to invest in Bitcoin because it's risky, it looks like you are telling someone not to enter into heaven.

You are absolutely right bitcoin investment is not an easy one but there are people who are going about it like it's nothing and I think the author of this article really tried and I can't really say that bitcoin is a safe haven but I think one of the thing that qualifies it is, low gas fee and again they have strong team and the  feelings when you invest in bitcoin is very different from when you invest on other coin. To an extent you are also right, we don't know what bitcoin will look like in the next 5-10 years because the coin is created by human not God but will hope and pray it continue to exist no matter what.

Anybody wey no dey reason Bitcoin as a safe haven investment that one na your own business because I personally can't find another investment that is more safe haven than Bitcoin. I for dun talk gold but that one no dey even increase in price, e only just stays stable like fiats with very few increase and although you can classify that as a safe haven but wetin reach an asset wey go protect your investment and still give you an opportunity to make profits. Forget about the volatility of Bitcoin as that one no be a flaw but na wetin make Bitcoin strong. Bitcoin fit crash with the general market in the times of economy pandemic abi economical breakdown but after that one dun pass, you can be rest assured say Bitcoin go dey among the best performing assets.

The limited supply of Bitcoin na wetin sweet pass for its features as a safe haven because the other safe havens wey I know no technically get a limited supply and no get a Blockchain technology like Bitcoin. Bitcoin still dey new too and the more adoption they increase na the more Bitcoin go dey get more exposure and possibilities of the price increasing. There's no futuristic asset wey pass Bitcoin wey you fit use as a safe haven, a currency and still a future investment because as you dey save your money na so your money still dey grow for your wallet wey e dey still doing nothing but safe.

Yes in my own opinion, I believe that Bitcoin is a safe heaven to save your money in, because it's an asset that appreciate in value overtime, though it's has it own risk attached to it due to it volatility, but it's way more better than holding your money in fiat, which will be eaten up by inflation, so it's very necessary to hold your money in Bitcoin, because by doing so, you don't just gives your money added value, you are unknowingly building a generational wealth if you really have a good stash of Bitcoin in your possession, and you stay true to your accumulating strategy.

So in essence is that, Bitcoin is actually a safe heaven for our money, just like land, gold, and anything that appreciate in value overtime.

You summarized what is important to note about Bitcoin as a currency and as an asset that's good for investment.
Bitcoin has proven to be a safe haven asset since meeting the requirements and after the launch and approval of the spot exchange traded fund, that's the spot ETF, because without the ETF approval, it would have not been possible for large pocket investors like big corporations and businesses with large capital to invest in Bitcoin as an asset of value and am sure also if Bitcoin did not have the potential and prospects of increasing in value and returns, regulatory agencies, that's the SEC, would have not allowed its activities and use to be regulated citing it as irrelevant or a sham that has failed already with proofs of such failure.

Yes Bitcoin is a safe haven asset in the sense that you can decide to make any amount of transactions without limit and interference by any third party organization and the government (decentralized), you can choose to invest in it by hodling for long term profits so Bitcoin have proven to be a volatile asset that is worth investing on and since it has been able to clear the doubt of those that were thinking and making speculation that it will crash but it has become more reliable and sustainable so anyone who invest in Bitcoin is surely on the safer side perhaps Bitcoin is a safe haven asset.

We've seen how the value of Bitcoin went since the day of it's creation till this point anf though it's volatile in nature, it still has the potential of retracing to different ATH whenever it's price goes down which makes it a good asset class and one of the best to invest on especially for long term investment and knowing that the ETF was approved for more big investors, industries and companies to come in shows that it's a very valuable asset to invest on if Bitcoin was worthless then I don't think there would be any need for ETF approval or arrivals on big investors. Bitcoin is a very good asset for investment but then I'll still continue to advise that one must be very knowledgeable and understand it properly before making any investment whether long or short-term.

There's heavy crash in the market, we just have to he patient and know the necessary steps to take in the space. Bitcoin is the perfect illustration for safe Haven asset for investment in crypto, it have the necessary features to bolster the swift bull runs and also its been affected by bear season which personally I see them as opportunity to grab more golden opportunities to bagged pieces of bitcoin and not just them, but other altcoins inclusive. Bitcoin will continue to hits more than expected, we should always buckled up and ready for the challenging moments in the space. When it comes to volatility, the market speaks for itself and bitcoin stands strong enough.

Bitcoin is indeed can be recognize as a safe haven asset by many investors, It has shown the potential to retain or even increase in value during economic instability similar to traditional safe haven assets like gold,silver and bonds etc. While Bitcoin is not backed by a government or central authority its ability to preserve value during economic downturns has led so many investors to consider it a safe haven asset for their investment portfolios. Both Bitcoin and gold are viewed as stores of value and can potentially retain or increase in value during times of economic uncertainty.  There are key differences between the two assets, Bitcoin operates in a digital space and is decentralized, while gold is a physical asset with a long history as a store of value. The supply of Bitcoin is fixed, whereas gold's supply can increase through mining. Despite these differences, both assets have shown resilience during economic downturns, making them attractive to investors seeking safe haven options. The overall adoption and acceptance of Bitcoin in normal finance and investment circles can also play a significant role in determining its status as a safe haven asset.

Any asset that has limited supply while the demand Keeps booming it's obvious it's a good asset for investment because it will eventually gain value over time, and speaking of which Bitcoin is a great fit for that description. The most amazing part is that it's a decentralised currency and can be accessed by anyone anywhere and anytime. Over the years, Bitcoin has proven to the world of its genuine nature and that's enough reason to believe in Bitcoin and use it for saving your funds, besides it would gain value over the years and add extra profit to you just saving you money. Just like gold which is a good asset for saving your money Bitcoin is much more liquid in nature and easy to use and access. You can actually make purchase based on your financial status, and there are strategies that can allow you to hold without causing any financial distortion.

Many years after Bitcoin was first touted to be a safe haven asset, I can now confirm that indeed it is. Unlike other assets with steady inflation of the supply, Bitcoin's capped and Halving events simply keep these current inflations to the bare minimum over the next couple of years. We no go fit find any assets that beats the level of returns with very little risks as Bitcoin don do so far. And e go only get better from here as Bitcoin dey get more adopted by people, businesses and companies with each passing year especially now that it has its own ETFs. That's on the plus side.

Op, Bitcoin is a safe haven asset for investment at the same time it is not, it all depends on the context you are looking it from, in th aspect of Bitcoin not being a safe haven investment, I want you to understand this, may be you know it already, bitcoin is a highly volatile asset that has the ability to undergo a  surprising fluctuation at anytime, this simply means that your expectations may not be visible at a short period of time, however, we can call Bitcoin a safe haven asset for investment because of how decentralized and trusted the system is, despite the negative events that do take place in the botcoin environment which is seasonal due to its market capability, every Bitcoiner has one or two good thing to say about Bitcoin ranging from good security, multiple transactions at the same time, devoid of scam, the most valued digital currency, investors friendly, the only digital asset that has more existing and intending investors than any other coin, a digital asset whoise  price controls the price of other coin, i think with all this aforementioned we can call Bitcoin a safe haven asset for investment.