Is Bitcoin a safe haven?

[jinneas]

The characteristics of Bitcoin make it an extremely attractive investment. Bitcoin transactions do not require third-party authentication and can be free from the control of governments or banking systems around the world.
In times of crisis, people are uncertain whether banks can continue to operate, and confidence in the banking system or its government support often falls to the point of bank runs, and there is little reason to believe that banks will continue to operate. Bitcoin is global, so there is no reason to doubt that it will continue to operate. This means that if there is an economic recession, banks and governments will face solvency issues, making their services somewhat risky, and Bitcoin looks more stable. Bitcoin is outside the banking system, although its price fluctuates, cryptocurrencies can sometimes provide better long-term stability than real-world currencies that are more volatile.

US Federal Reserve Chairman Jerome Powell once stated that Bitcoin is a "speculative store of value" and Bitcoin investors are speculating on it as a store of value.

This is not to say that Bitcoin cannot play the role of a safe haven, but Bitcoin may not be a real safe-haven asset at this stage.

Will Bitcoin eventually become a safe haven for the banking system?
https://www.rt.com/op-ed/531238-crypto-regulation-sec-cbdcs/

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[Dave1]

Bitcoin could be viewed as an alternative to banking system, and we don't need to deem it as safe haven. Actually there's no asset that is safe, even gold and oil fluctuates.

What bitcoin can offer is that it can somewhat been a leverage, but we have to understand that it is very volatile as well, so that risk is high.

[Xinarae*]

Bitcoin is a very good currency to invest in but it is not considered a safe haven because the crypto market is not stable. No one can say for sure when the price will go down major digital assets including bitcoin ethereum and ripple, have plunged into the red hot cryptocurrency space at once with the global equity market slumping to billions of dollars in market value in a matter of minutes. The unexpected fall in the digital currency sector follows a time of price stability for highly volatile markets and may suggest that investors are less likely to move assets forward as safe haven bets.

[Poker Player]

Well, I completely disagree with the previous answers.

Bitcoin is not only a simple safe haven, it is the best safe haven in the world.

It is the best way to store your wealth. It is the most difficult to confiscate and the easiest to transport. That is why it is the best safe haven.

You can take $1B around the world very easily, or you can send it to the other side of the globe in no time for a ridiculous amount of money.

Try to take $1B of real estate or gold, or fiat currency around the world. Or try sending it and compare. 

[slaman29]

Safe haven implies that people are only going to it when they are escaping risk from elsewhere. It comes from shipping I think, when ships would look for a harbor that is safe from storms. But they never stay, they always go out as soon as conditions are better outside.

So I think yes it does not really fit the whole description. Unless people also do that to gold?

[dansus021]

i think there is bunch thread alike this. but in my opinion it always depen on you for long term run bicoin already proof that the value always up. but for short term you can see the volatility and looks not safe at all

[lenovop-70]

I disagree with that, Bitcoin is not safe haven because no guarantee with it. There is no institution that guarantees that your investment will be safe for a certain period of time, nor is there any guarantee that you will make a profit. There is only a reward for your perseverance in monitoring the market, I think that is only your guarantee. You can buy when the price is down, and you can sell it when the price is high. Bitcoin is a commodity, not a bank that promises interest and investment security.

[Kemarit]

Safe haven implies that people are only going to it when they are escaping risk from elsewhere. It comes from shipping I think, when ships would look for a harbor that is safe from storms. But they never stay, they always go out as soon as conditions are better outside.

So I think yes it does not really fit the whole description. Unless people also do that to gold?

And to add to that, for me a safe haven is an asset that will not lose it's value overtime.

We all know that Bitcoin has bulls and bears market, so technically it can lose it value when we are in a bear market. So technically, it not a safe haven per se, maybe you can hedge your wealth, but there could be time that you need it and unfortunately, when we enter a bear market, obviously, your money will loss it's value.

[cabron]

Everybody today wants to have more BTC on their balance sheet. If everybody wants so, then there is got to be something on it besides profit.
Obviously, you lose money when its value also drops since its volatility works that way. But if you mean safe as the government can't take it away from you then yes. Whether the value drops to its knees, the BTC will still be with you no matter what happens so consider it safe haven in that manner.

[technicalseo]

Research shows that at least in 2019, bitcoin was primarily intended for speculation. According to this research, bitcoins are often held by traders who usually have risky portfolios. As such, bitcoin is unlikely to act as a safe-haven asset for investors. I share it on Instagram. https://technicaltechie.com/gb-instagram-download/

[Wexnident]

I'd reckon if most people chose Bitcoin as a safe haven and there was a crisis that made them look for a safe haven, then it wouldn't actually stop at letting the value of their remain the same, it'd actually increase since more people would try to buy Bitcoin for the sake of saving the value of their assets. From there, well, it's basic supply and demand. There'd be a huge drop ofc, if they think that the crisis is over, but during the crisis itself, then it'd be the best safe haven. That is IF most people think of Bitcoin as a safe haven.

[TheUltraElite]

The term "safe haven" is used mostly in the context of tax evasion and money laundering, both of which are illegal. In either case, the person taking part in such activities may very well be linked to criminal activity and therefore be arrested for it. If that is what you have in mind, then be sure that one day you will be caught. Dont take part in doing such wrong stuff and you will remain unscathed.

Speaking of investing, I do not consider any investment to be a safe haven. Each carries they own risks, pros and cons. You have to decide which one is best for you. People always have to link things even if they are unrelated - so they put bitcoin because it was new and linked it to safe investment, when in reality every investment comes with a risk.

Speculation and non-regulation only makes the investment a lot unsafer. Only seasoned traders know when to buy and sell bitcoin.

[Nora Olin]

As far as the new crown epidemic is concerned, many signs indicate that with the beginning of the crisis, people's demand for Bitcoin has greatly increased. For the inflation problem caused by the virus, Bitcoin is still the best choice of currency and the most perfect storage, so if the risk of falling into a crisis of inflation is small, the attractiveness of Bitcoin will increase greatly. It can also be said that people almost believe that cryptocurrency is the best choice in the face of crisis and can be regarded as a safe haven.

[pooya87]

I don't think we can consider bitcoin a safe haven because its price is too volatile and there can be long periods of downtrend like what we had in 2018. Otherwise bitcoin is an excellent currency because of all the reasons outlined in OP (decentralized, no need for third parties, censorship resistant, ...).

Bitcoin is outside the banking system, although its price fluctuates, cryptocurrencies can sometimes provide better long-term stability than real-world currencies that are more volatile.

No, bitcoin can provide that not cryptocurrencies in general. In fact majority of altcoins are useless and will die long before we see another recession.

[Kiley33]

In a sense, Bitcoin can be a safe haven
Bitcoin is also an investment, and it is also risky, but compared to other investment projects, Bitcoin has a consensus. Everyone believes in it. This makes Bitcoin more and more valuable.

[jinneas]

Bitcoin is more appropriate only as a complement to ordinary currencies and banking I guess, the characteristics of bitcoin itself still have risks which of course are still prone to risks to the banking system. So I think this is indeed one thing that deserves to be in the future's things, but this is only as an alternative in terms of finance, which can push the human financial side, accompanying paper money.

Banks are relatively fragile and may fail during a crisis, or fiat currencies are likely to inflate or over-inflate. In this case, Bitcoin's scarcity and flexible transfer make it still the best protected currency. The risk of falling into an inflation crisis is small, and the attractiveness of Bitcoin will surge.

[ranochigo]

Bitcoin is outside the banking system, although its price fluctuates, cryptocurrencies can sometimes provide better long-term stability than real-world currencies that are more volatile.

Do you know the definition of stability? If we were to compare the price of 1BTC against a basket of the currencies of the major economies, the volatility of Bitcoin, by far is greater than the volatility of the latter. Comparing the exact same timeframe eliminates most factors and cryptos or Bitcoin is certainly not something that is very stable.

[Kong Hey Pakboy]

in terms of investment or storage, we can say that for now bitcoin is one of the best with a super tight level of security so it is not easy to be broken into by anyone who wants to do evil against hacking our account.because bitcoin is also coated with security so sophisticated that it makes hackers feel very overwhelmed

If you store it on online wallet, I can't exactly agree that it's going to be secure, remember that if it's not your keys then it's not your coins then. Yes I think it's a safe haven but it's an unstable one because of its volatility, maybe for the long-term if the growth in the market is consistent, there's a possibility that bitcoin's going to be considered a safe haven.

[herurist]

i have read some of the same threads asking if this bitcoin is safe or not? and most answered almost the same mentioning nothing is safe.
and it's true that there is no safe word here because we know that bitcoin is an alternative that can be used by many people and I emphasize that here it is alternative and volatile so it will be very difficult to guess where it will go.
from here we understand that it will not be completely safe when you hold this coin there must be consequences that we must accept such as from an increase or decrease in price.

[Leviathan.007]

That completely depends on the investors. If they can control their emotions and know what they are buying and know the market, then yes bitcoin can be a safe haven. If you aim for the long term and be patient, this can be a safe haven for you and make you rich during the time you hold bitcoins the emotional decisions will come to you and start tempting you to panic sell and buy at ath, if you have the will power to make right decisions. The answer and be a big yes, otherwise you will leave the market with an empty hand while you lost the money you invested. Generally, investing in bitcoin can keep you safe from the inflection if you keep yourself safe.