[2020-03-13] Despite Bitcoin Price Dips, Crypto Is a Safe Haven in the Middle Ea

[bL4nkcode]

Despite Bitcoin Price Dips, Crypto Is a Safe Haven in the Middle East

Although it’s difficult to quantify demand for bitcoin (BTC) in informal markets across the Middle East, small-scale traders from Lebanon to Yemen say interest in bitcoin as a safe-haven asset, not a speculative asset, is stronger than ever.

Source: Coindesk

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[bbc.reporter]

That is what they all say until they have reached a point of capitulation and begin to sell in panic themselves hehehe. I reckon many of the safe haven buyers of December 2017 might be stressed in all of their years holding bitcoin. They know their money would have grown in value holding something else.

[Betwrong]

That is what they all say until they have reached a point of capitulation and begin to sell in panic themselves hehehe. I reckon many of the safe haven buyers of December 2017 might be stressed in all of their years holding bitcoin. They know their money would have grown in value holding something else.

Well, we are in a very different situation now, imo. People who were buying BTC in December 2017 were buying at the top, and today we at the bottom, don't you think?

If it's not the "end of Bitcoin", declared so many times before, those Middle East guys have a point in calling Bitcoin a safe-haven asset.

[Lucius]

It sounds a little unreal for someone to construct a story about Bitcoin as "safe haven" on how someone in Lebanon or Yemen is buying Bitcoins at the moment. Especially if the article is read, and if we consider the following statement : "Yemeni bitcoin trader Mohammed Alsobhi said roughly five civilians continue to buy a small amount of bitcoin each month".

Well, this market does not really exist, so it is completely irrelevant if we look at the current situation. We can hardly call Bitcoin a "safe haven" when it loses almost 50% of its value in 24 hours, we can already call it an alternative way of paying, or transferring funds in sanctioned countries. An obvious example of this is Iran, where some estimates say that about 30 companies use Bitcoin "for cross-border deals".

[cr1776]

Despite Bitcoin Price Dips, Crypto Is a Safe Haven in the Middle East

Although it’s difficult to quantify demand for bitcoin (BTC) in informal markets across the Middle East, small-scale traders from Lebanon to Yemen say interest in bitcoin as a safe-haven asset, not a speculative asset, is stronger than ever.

Source: Coindesk

In the long run, bitcoin is and will become a safe haven.  Whether it is for any particular entry point in any particular geographic location for any particular holding period, that is a different question entirely.  If you purchased in December 2017 from Europe or the US, then it didn't (yet) preserve your capital.  If you purchase in December 2017 from Venezuela or someplace like that, then it did most definitely preserve a lot of your capital compared to holding your local currency.

Without a lot of additional information such as when one purchased, where one was when one purchased, and the timeframe that one intends to use it to protect one's value, the equation is somewhat meaningless.  If you mined in 2010 and 2011, it has been a great safe haven.

[Harlot]

The way I see Bitcoin's price now is it doesn't look like a "safe haven" for me but one of the best opportunity to be part of the crypto industry. The seller's increased in BTC sold doesn't indicate Bitcoin being a safe haven but it indicated that investors are taking advantage of the lower prices Bitcoin has ever been during the first half of 2020. Also we need to consider the increased in his number of customers from 50 to 90 customers during the month of March which just indicate that there is a growing number of people interested in buying Bitcoin even during these down times. It may be a safe haven for some but in the eyes of any investor they see a good opportunity when they look at how Bitcoin is moving now.

[figmentofmyass]

Although it’s difficult to quantify demand for bitcoin (BTC) in informal markets across the Middle East

enough said.

Well, we are in a very different situation now, imo. People who were buying BTC in December 2017 were buying at the top, and today we at the bottom, don't you think?

i like your attitude, but who's to say for sure we're at the bottom? something like this seems within the realm of possibility: https://bitcointalk.org/index.php?topic=5128394.msg54018386#msg54018386

markets are emotional and irrational. prices are subjective. today, both $1k and $100k are still on the table. all i know is bitcoin is one hell of a roller coaster ride!

[bbc.reporter]

That is what they all say until they have reached a point of capitulation and begin to sell in panic themselves hehehe. I reckon many of the safe haven buyers of December 2017 might be stressed in all of their years holding bitcoin. They know their money would have grown in value holding something else.

Well, we are in a very different situation now, imo. People who were buying BTC in December 2017 were buying at the top, and today we at the bottom, don't you think?

If it's not the "end of Bitcoin", declared so many times before, those Middle East guys have a point in calling Bitcoin a safe-haven asset.

No one said that it is the end of bitcoin, however, calling it a safe haven asset if everyone is really using it as a speculative investment similar to stocks is wrong. Your money is not safe if you get only half of its value of 3 years ago.

Also, agreed! It is a different situation. The investors who bought the top on 2017 are in a worse situation hehehe.

[hatshepsut93]

In the long run, bitcoin is and will become a safe haven.  Whether it is for any particular entry point in any particular geographic location for any particular holding period, that is a different question entirely.  If you purchased in December 2017 from Europe or the US, then it didn't (yet) preserve your capital.  If you purchase in December 2017 from Venezuela or someplace like that, then it did most definitely preserve a lot of your capital compared to holding your local currency.

Without a lot of additional information such as when one purchased, where one was when one purchased, and the timeframe that one intends to use it to protect one's value, the equation is somewhat meaningless.  If you mined in 2010 and 2011, it has been a great safe haven.

Yeah, Bitcoin preserved a lot of value for Venezuelans, but still it lost a lot of value even for them if you invested in wrong time. This is why the best safe heaven for countries experiencing hyperinflation is the US dollar. With it you won't lose 30% of your wealth in a day. However, if you can't get your hands on it or other foreign currency, than Bitcoin becomes a good option. Also Bitcoin is easier to conceal, which can be a huge advantage in some situations, like escaping the country.

[Harlot]

Yeah, Bitcoin preserved a lot of value for Venezuelans, but still it lost a lot of value even for them if you invested in wrong time. This is why the best safe heaven for countries experiencing hyperinflation is the US dollar. With it you won't lose 30% of your wealth in a day. However, if you can't get your hands on it or other foreign currency, than Bitcoin becomes a good option. Also Bitcoin is easier to conceal, which can be a huge advantage in some situations, like escaping the country.

You should keep in mind that countries who are under extreme hyperinflation like what is happening to the Venezuelan Bolivar can also affect foreign currencies. Venezuela from what I know have accepted other foreign currencies when they have experienced extreme hyperinflation and those fiat currencies are not immune to what is happening with their country. Here is a year old article from Reuters explaining why the U.S. dollar is affected by the inflation. The article basically explains that even if they are using U.S. dollars in buying goods the market are also adjusting their prices in terms of their goods being bought with the U.S. dollar, so even the foreign currencies are somehow affected by the inflation. The bottomline is countries like this one cannot count even a foreign currency as a safe haven for their wealth.

[Jating]

That is what they all say until they have reached a point of capitulation and begin to sell in panic themselves hehehe. I reckon many of the safe haven buyers of December 2017 might be stressed in all of their years holding bitcoin. They know their money would have grown in value holding something else.

Well, we are in a very different situation now, imo. People who were buying BTC in December 2017 were buying at the top, and today we at the bottom, don't you think?

If it's not the "end of Bitcoin", declared so many times before, those Middle East guys have a point in calling Bitcoin a safe-haven asset.

No one said that it is the end of bitcoin, however, calling it a safe haven asset if everyone is really using it as a speculative investment similar to stocks is wrong. Your money is not safe if you get only half of its value of 3 years ago.

Also, agreed! It is a different situation. The investors who bought the top on 2017 are in a worse situation hehehe.

Why would they stressed themselves when 1 BTC = 1 BTC?

We haven't seen this kind of situation before, the closest we got from this kind of dump is during the Mt. Gox heist, but that is still not comparable as to the market situations we have right now. And for those who are really stressed, the only option is to sell, that is if they want to lose money today.

[bbc.reporter]

@Jating. I would assume that the people who tell everyone that 1BTC = 1BTC consider it a currency and not a speculative investment. Ok, however, 1 bitcoin can buy lesser toilet paper, disinfectant soaps and hand sanitizers than when they bought bitcoin on $16k - $20k on December 2017.

Would you consider this as a safe haven?

[Betwrong]

~
markets are emotional and irrational. prices are subjective. today, both $1k and $100k are still on the table. all i know is bitcoin is one hell of a roller coaster ride!

Today it is true more than ever. And I thought $7k was the bottom! How very wrong I was!

No, Bitcoin is not a safe haven. In fact, no asset is a safe haven any more.

Maybe Benjamin Franklin was right in saying “An investment in knowledge always pays the best interest.” Idk, nothing better comes to mind at the moment.

[bbc.reporter]

@Betwrong. I agree, however, the safest relatively stable asset might be the United States Dollar. Someone make an attempt to destabilize it. The destabilizer would certainly feel the anger of the mightiest military force on earth hehehe.

[stompix]

It sounds a little unreal for someone to construct a story about Bitcoin as "safe haven" on how someone in Lebanon or Yemen is buying Bitcoins at the moment. Especially if the article is read, and if we consider the following statement : "Yemeni bitcoin trader Mohammed Alsobhi said roughly five civilians continue to buy a small amount of bitcoin each month".

God, this article is so pathetic and screams so much of desperation it's painful to even read it all.
A guy is selling bitcoins to 5 people, a few Lebanese people are paying invoices abroad with BTC, so everything is fine, we didn't f*&^ drop 50% in a day, everything is fine, Yemen will save us.

Seriously, the author needs to seek help, I've never seen such a level of denial in ages!

@Jating. I would assume that the people who tell everyone that 1BTC = 1BTC consider it a currency and not a speculative investment. Ok, however, 1 bitcoin can buy lesser toilet paper, disinfectant soaps and hand sanitizers than when they bought bitcoin on $16k - $20k on December 2017.

Would you consider this as a safe haven?

Hmmm, 1 roll of toilet paper = 1 roll of toilet paper, thus, toilet paper is a safe heaven. But 1 bottle of sanitizer=1 bottle of sanitizer, so sanitizers are safe heaven.
Wait, we can extend this bs theory to everything!!! 

[Sheriff Woody]

With volatility being the deal breaker there is no way "small traders" can call bitcoin a safe haven because if things go south these are the first people to dump and call the coin a shit coin. But it's good to help cryptocurrencies are breaking boarders

[Betwrong]

@Betwrong. I agree, however, the safest relatively stable asset might be the United States Dollar. ~

It's Swiss franc in my opinion, but yeah, USD, EURO, GBP are also good in that regard.

Theoretically cryptos with capped supply, such as BTC, could also serve as a Safe Haven, but not until a great redistribution happened so that large amounts weren't controlled by small groups. It's just a matter of time to me though.

[joinfree]

The only way I think these people are considering crypto as a safe haven for to sustain the value of their funds is the fact that though crypto may be volatile the prices bounce back with time, unlike fiat currency. Some currencies have been depreciating in value for the past 15 years and don't see any signs of rising. Well, in seeing crypto as a safe haven for funds, it has to be a coin with a good market cap, recognized worldwide and been in this industry for the past 3 years at least.

[hv_]

Oo, there is no safe heaven on flat earth

Watch for milk and honey

[bbc.reporter]

@Jating. I would assume that the people who tell everyone that 1BTC = 1BTC consider it a currency and not a speculative investment. Ok, however, 1 bitcoin can buy lesser toilet paper, disinfectant soaps and hand sanitizers than when they bought bitcoin on $16k - $20k on December 2017.

Would you consider this as a safe haven?

Hmmm, 1 roll of toilet paper = 1 roll of toilet paper, thus, toilet paper is a safe heaven. But 1 bottle of sanitizer=1 bottle of sanitizer, so sanitizers are safe heaven.
Wait, we can extend this bs theory to everything!!! 

Everything to also 1 scam ICO token = 1 scam ICO token?

@Betwrong. I reckon it presently appears to be a matter of speculation hehehe.

@hv_. There are safe havens. They are protected by large military forces supported and paid for by the people that use them.