COVID-19 - Is Bitcoin still our sole safe haven at periods of economic crisis?

[LEON331300]

The most recent fall of Bitcoin was as seen as result of the outbreak of coronavirus. During this period bitcoin experienced a major decline in one day where the price fell from $7600 to $5300 in a day. And further moves down to $4,000 in a moment along with the United States Stock market.  This price fluctuation in price is the major reason investors do not see cryptocurrencies as a safe haven anymore. Bitcoin has only existed for 5 years while other assets such as Gold has been existing for about 5000 years. Gold is often sighted as having negative correlation with stocks and a positive correlation with inflation,  thus serving as execlent diversifying asset to hold in portfolios even at moments of global economic decline.
Also,  the price of Gold seems to be doing well hitting  $1700 and may even experience  a further increase.

This, isn't it  a bit too early to consider bitcoin as our safe haven?

What do you guys think?


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[minairia3]

This, isn't it  a bit too early to consider bitcoin as our safe haven?
If you like this post, be sure to drop me some merits! 😇
Thanks.

You cant speculate on something as bitcoin safe haven. Yes there are some people believe that bitcoin is safe in the time like this, however you cany be sure of that as bitcoin is a speculative commodity that has been so volatile for so long. Bitcoin is a good investment but you must remember to take extra careful cause you never know when the downfall will hit again.

The post is generalized event that occured in the few months, nothing special here and you cant simply ask for merits for your post, this is called merit begging and this is not allowed. Just post and let other appreciate what you posted and of course if the post is only quality and helpful.

[mk4]

If you meant safe haven in a sense of bitcoin as a hedge against economic uncertainty, then right now, obviously not. In the past few months there was a significant correlation between bitcoin's price and the S&P500, as you can see here:

chart URL: https://www.tradingview.com/chart/?symbol=GEMINI%3ABTCUSD

However, if you meant a safe haven in a sense that you have an unconfiscatable asset that you have total ownership in, then yes.

[cheater detector]

If you don't believe bitcoin then you can sell it all and buy a gold as much as you want it
Only the real bitcoin enthusiast can know how the bitcoin works and profitable than any kind other investment, I will still buy and hold bitcoin for the future

[sunsilk]

Don't generalize that as the whole investors or people who invest in bitcoin says that it's no longer viable as a safe haven. I'm part of those people that says that it's still an effective safe haven.

Bitcoin has only existed for 5 years

Bitcoin has existed since 2009, the first block was mined on that year of January.

[The Cryptovator]

It's safe haven for some people, all peoples wouldn't believe it's safe haven. Everyone have their own opinion. I am assuming you are in suspension about safe haven due price drop which isn't enough reason to call unsafe haven to me. When last time bitcoin dropped approx $3K zone that time wasn't not any epidemic situation there. But if you compare on current circumstances then bitcoin position still good and I can say it's still safe haven for bitcoin users.

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Please don't ask further for merits, no one will send you merits for such as post, repeating same thing would ended up with red tag. Just try to make quality good post at least and you would get merits. Change your goal to make quality post.

[Sayma83]

Bitcoin is no longer considered a safe haven for investors, I agree with you, Bitcoin is advancing day by day, you see reports from various exchangers, how many new investors are entering Bitcoin every day, and You also said that because of Covid-19, there was some effect on one side, maybe we would have got something better, but there is some effect due to Covid-19, but that Bitcoin is still in a much better position than other stock markets. If you look at the oil market, you can see how much it has gone down. Moreover, the economies of different countries are now paralyzed. Is Bitcoin market or Bitcoin investors in a better position than that? Doesn't seem to have! ?BTC

[Wexnident]

There isn't an absolute safe haven imo. It isn't like Bitcoin can't be a safe haven, it's just that the market impact of the virus also hit it, just like how the virus impacted the various stocks out there. It wasn't like Bitcoin was the only one hit as you said, Even gold, said to be another safe haven which is probably considered by most better than BTC, was hit. So who's to say that it isn't a safe haven anymore right? And besides, it wasn't considered one till it's issue of volatility is gone. Since the market supply is still currently being moved around, this brings about the fact that Bitcoin can't act as a safe asset. Probably once the supply is all out and after a few years then, you could consider it, but right now? Not really.

[James1970]

Idk why people decides that bitcoin can be a safe haven. In my opinion safe haven should be the most stable thing in the world. Gold or other metals, for example

[The Sceptical Chymist]

Bitcoin has only existed for 5 years while other assets such as Gold has been existing for about 5000 years.

Um, yeah....you seriously need to get your facts straight before putting your fingers to your keyboard.

If you like this post, be sure to drop me some merits! 😇

If you're looking to earn merits, you're going to have to step up the quality of your writing--not only its style, but its content.  What you write has to be factually correct and also relevant.  Don't post stuff you pull out of your ass and then sit back and wait for the merit to come in.  Others have tried just that, and it just doesn't work.

[cheater detector]

Idk why people decides that bitcoin can be a safe haven. In my opinion safe haven should be the most stable thing in the world. Gold or other metals, for example

Like I said above, no one force you to believe in bitcoin... you can actually buy gold if you believe gold will be the best investment

[BitcoinsGreat]

The most recent fall of Bitcoin was as seen as result of the outbreak of coronavirus.

I don't think so that the recent dump was due to virus. Yesterday and today bitcoin is pumped about 600$, so why it is so ? Coronavius , economic unstably and uncertainty is still there, then why bitcoin is price is again high ?

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Don't beg for merits, rather earn them. If you have not begged, someone might have given you merits.

[pooya87]

bitcoin was not made to be your financial safe haven or help you escape economic crisis by giving you profit on your fiat, nor was it made for trading or even investing your money.
bitcoin was made to give you financial sovereignty with a decentralized system that is void of the corruption of the centralized systems specifically the banking system. whether its price goes up or down during a recession is just pure speculation. the only thing that matters is for bitcoin to keep its main principles.

[ballerin and giroud]

Bitcoin is trying to reach its original price before covid 19 come and I believe its price will be touched again. At least it has showed that bitcoin can be a safe heaven place like gold. As you can see some stocks still in the lower price and couldn't increase like bitcoin now. And this is pointed as well that bitcoin isn't affected to the economic situation from all countries. This characteristic is close to gold, because so far we can't see the price of gold is decreasing even its price just increase and I can see it in bitcoin as well.

[pragna]

I think this is not the time to judgement BTC is safe house or unsafe house for investment at this crisis moment. There need lots of research about BTC and if you say about price last some days it was expected. But you see now BTC going move up and the rapid movement you will not see another currency. So i can believe in BTC for my safe house.

[ChiBitCTy]

The most recent fall of Bitcoin was as seen as result of the outbreak of coronavirus. During this period bitcoin experienced a major decline in one day where the price fell from $7600 to $5300 in a day. And further moves down to $4,000 in a moment along with the United States Stock market.  This price fluctuation in price is the major reason investors do not see cryptocurrencies as a safe haven anymore. Bitcoin has only existed for 5 years while other assets such as Gold has been existing for about 5000 years. Gold is often sighted as having negative correlation with stocks and a positive correlation with inflation,  thus serving as execlent diversifying asset to hold in portfolios even at moments of global economic decline.
Also,  the price of Gold seems to be doing well hitting  $1700 and may even experience  a further increase.

This, isn't it  a bit too early to consider bitcoin as our safe haven?

What do you guys think?


If you like this post, be sure to drop me some merits! 😇
Thanks.

Hard to merit this post when you've stated bitcoin has only been around for about 5 years.  I'd say you need to do a little bit more studying up on some of the most basics.  I personally don't see bitcoin as a safe haven such as gold is, in my opinion.  But that is not to say that it isn't a safe have of some sorts.  I think there are way too many things bitcoin is used for right now that it's possibility of going to zero is slim to none.  That said, I could see if far pretty low.  Some "safe haven's" can still be a bit volatile.

[rexxarofmoknathal]

I guess you haven't seen that some countries actually cut off the internet during times of extreme unrest.

It's particular common in countries like India and China, but several other countries are also known to simply cut off the internet when there is a hint of civil unrest.

What good is Bitcoin if the internet gets cut off?