The war of words between the U.S. and North Korea has raised demand for cryptocurrencies at the expense of traditional “safe” havens such as U.S. Treasuries and gold.
Ron Chernesky, CEO of InvestFeed Inc., a trading platform that is switching from equity to cryptocurrency trades, said investors are transferring to cryptocurrencies to diversify their risk should there be a market downturn. He said cryptocurrencies have moved from a niche space to one that is more widely accepted since they are less correlated to other assets.
Koreans are seeking refuge in Ethereum, which saw its trading volume jump to $2.6 billion on Wednesday, marking a 60% gain over bitcoin’s. This marks the second time Ethereum’s trading volume has surpassed bitcoin’s.
Read the whole news article here. Well, this is a little bit of a good news to the cryptocurrency market...instead of investors withdrawing and encashing their share of Bitcoin and other cryptos, there is a trend to buy more driven by the continuing tension between nuclear-power countries (US and N.Korea).
I guess we are seeing here a facet of how Bitcoin would behave in case there will be conflicts in powerful nations. Threat of annihilation and prolonged problems can be the catalysts for investors and Bitcoin enthusiasts to buy more of the coin.
Does it mean that instead of gold...this is now the era of Bitcoin as the safe haven?
