Bitcoin is a “safe haven asset”

[Don Pedro Dinero]

But as many others have pointed out, bitcoin's volatility is still very high, and it can be manipulated, so considering it a safe haven is not entirely correct.

I would not worry so much about whether it meets the traditional definition of a safe haven asset because of volatility, but whether it is a good long-term investment vehicle. Yes, it is very volatile today, although volatility will reduce over time, but if we compare it to gold in terms of returns since bitcoin was launched, there is no comparison.

[fuguebtc]

For me, this is the first time I've seen a traditional company admit and call bitcoin a safe haven and consider it superior to gold. What do you think about this and should we stop calling bitcoin a risky investment?
https://blockworks.co/news/alliancebernstein-gold-bitcoin-returns

I think only people who do not know the concept of bitcoin, its transparency, and it decentralized nature will consider it a highly risky investment.

Most times, due to ignorance, people generalized cryptocurrency as a risky investment because Altcoins have been leading people to lose their money due to centralization, but I have never heard someone complain that they lose money due to investing in Bitcoin if they have patience to have waited for long-term, only altcoin investors are complaining and generalizing cryptocurrency as risky investment.

If you compare bitcoin with altcoins, what you say is correct, but if you compare bitcoin with gold or real estate, which is safer? That's what everyone is discussing, no one compares bitcoin to altcoins because altcoins are just trash and have nothing to say.

I think transparency and decentralization are not enough to prove that bitcoin is a risk-free asset. Volatility and lack of worldwide recognition, small market capitalization...all these are enough to indicate that bitcoin is not only risk-free but also high-risk. Bitcoin is still not a safe haven like gold and that is a fact.

[angrybirdy]

But as many others have pointed out, bitcoin's volatility is still very high, and it can be manipulated, so considering it a safe haven is not entirely correct.

I would not worry so much about whether it meets the traditional definition of a safe haven asset because of volatility, but whether it is a good long-term investment vehicle. Yes, it is very volatile today, although volatility will reduce over time, but if we compare it to gold in terms of returns since bitcoin was launched, there is no comparison.

Its volatility risk is one of the major factors determining whether Bitcoin is a good investment. The personal decision to invest in Bitcoin comes down to your appetite for risk and your perspective on the future of humanity.
I can consider it as a safe haven asset because it can be converted to cash easily in a bunch of different ways once hitting its all time high value. if history repeats it self, which we have seen multiple times now, Bitcoin tends to reach new all time highs every 4-5 years.

[posi]

But as many others have pointed out, bitcoin's volatility is still very high, and it can be manipulated, so considering it a safe haven is not entirely correct.

I would not worry so much about whether it meets the traditional definition of a safe haven asset because of volatility, but whether it is a good long-term investment vehicle. Yes, it is very volatile today, although volatility will reduce over time, but if we compare it to gold in terms of returns since bitcoin was launched, there is no comparison.

Its volatility risk is one of the major factors determining whether Bitcoin is a good investment. The personal decision to invest in Bitcoin comes down to your appetite for risk and your perspective on the future of humanity.
I can consider it as a safe haven asset because it can be converted to cash easily in a bunch of different ways once hitting its all time high value. if history repeats it self, which we have seen multiple times now, Bitcoin tends to reach new all time highs every 4-5 years.

A good investment and good returns, that doesn't mean it's a safe haven. Let's see what gold offers and why people call it a safe haven and not any other asset. You also don't forget that the higher the profit, the higher the risk, no safe asset will bring high returns. And if it is already high risk then how can it be called a safe haven?

You can consider it a safe haven according to your definition but if you rely on common world concepts it is clear that bitcoin is currently not a safe haven. We are talking about the macro level, not the individual level.

[|MINER|]

If you ask me the question then first of all I wanna say that there is no investment for risk is not included. I think that every investment has their own risk from their perspective. If I tell about Bitcoin yes Bitcoin is the most secure and trustable asset but for investment there will be still a risk and that risk has to be faced only when you are going to trade in it.  Because many times it is seen that many traders face losses while doing short term trading in Bitcoin so that means Bitcoin is the most secure but there is also risk here.

[so98nn]

If that entity says it after extensive study then it's good to hear and one kind of achievement towards the "nonbeliever" and one of the blush smile on long Bitcoin believer like us. I am saying this because if we chose to believe in Bitcoin when we entered into its long cycle of madness. That was enough for us, that also through the downturns that we got through different rules and regulations, economic crisis periods such as the current one, and various allegations of big financial institutions going down the sink. We have seen all of it but Bitcoin made nasty moves on all that chaos through time.

Now coming back to its validation let's assume that this is for the peeps who never believed in it. However, anything that has financial risk will always be a risk no matter what it is. Even Gold, Coins, Dimes, or anything that has government backing to private backing will always be an uncalled risk. It's all about how one manages everything.

[KiaKia]

I don't compare bitcoin to been a highly volatile assets, that's a true definition of all other crypto assets apart from Bitcoin, every other coins loses 80 to 90 percent of their value in every bear market, but looking at the past charts of Bitcoin I don't see where Bitcoin retest it's old low price of the last bear markets before, the bottom of 2016 or 2020, it's always higher bottom in terms of value.

The demand is real, as yes price instability is present but mehn I would rather have all my cash in Bitcoin because it's worth it, I know the worth of Bitcoin that's what makes me tool this move, anyone who still doubts don't understand Bitcoin, it's all in the past charts.

Inflation is real, I have saved a ton of devaluation using Bitcoin, because if my money is still in cash now I would have missed a lot of opportunity and also the value of my money will be in mess already, Bitcoin is a safe haven, no one can tell me otherwise.

[darkangel11]

I don't compare bitcoin to been a highly volatile assets, that's a true definition of all other crypto assets apart from Bitcoin, every other coins loses 80 to 90 percent of their value in every bear market, but looking at the past charts of Bitcoin I don't see where Bitcoin retest it's old low price of the last bear markets before, the bottom of 2016 or 2020, it's always higher bottom in terms of value.

Are you saying that bitcoin is so much different because it loses close to 70% in bear markets while other cryptos can lose 90?
It always been higher lows, I agree with that, but a safe haven asset doesn't even lose 50% at any point.
For bitcoin to be a safe haven asset it would have to constantly hold value, or appreciate, pretty much like a downtown apartment in London.

Take the 2017-2021 market. If you bought anywhere between December 2017 and March 2018 you had a bitcoin worth between 10k and 20k.
Between that and May 2019 you couldn't touch it or you'd take a loss. Imagine that in that period you'd have a financial problem, needed to pay hospital bills, had a house fire, a burglary... You wouldn't be able to use your investment to cover that and you'd be able to come ahead in 2019 only if you bought below 13k because if you were unlucky to buy above that price you'd have to wait until the end of 2020 to come ahead, so 3 years of your assets being frozen. 
 
 

The demand is real, as yes price instability is present but mehn I would rather have all my cash in Bitcoin because it's worth it, I know the worth of Bitcoin that's what makes me tool this move, anyone who still doubts don't understand Bitcoin, it's all in the past charts.

Inflation is real, I have saved a ton of devaluation using Bitcoin, because if my money is still in cash now I would have missed a lot of opportunity and also the value of my money will be in mess already, Bitcoin is a safe haven, no one can tell me otherwise.

I would rather have my cash in bitcoin too, which I have, but cash is not investment.
The problem with comparing fiat money to bitcoin is exactly that. Fiat money depreciates with inflation which people often call the inflation tax, so if you can afford to have your assets frozen in an investment, it's better to buy a property, get some gold, bitcoin, maybe even bonds. All of these things come with a freezing period though (like you can't just sell an apartment today if you need money) and bitcoin can experience the longest freezing periods due to its cycles.

As for that last sentence, tell that to people who bought bitcoin for 60k if they feel like its a safe haven asset.
If they bought gold in late 2021 -early 2022 they paid 1.8k/oz now it's 2k so they made 10%. If they bought bitcoin for 68k they lost 50%.

[EarnOnVictor]

What do you think about this and should we stop calling bitcoin a risky investment?

I'm happy you maintained your neutrality on this matter, and mind you, you don't believe everything you see or read, there are many ugly people with thoughts out there that can't even defend what they say, while many of them only react based on emotion and recent gains or losses.

As an experienced trader and investor void of emotion for any asset including Bitcoin, my unbias verdict on Bitcoin remains that it's a Risk-on asset, not a Risk-off asset (Safe-haven).

Aside from the fact that I independently studied Bitcoin, I still studied how it behaves in relation to Risk-off assets, but it failed the test. Nevertheless, it was more than 90% correlated with other risk-on assets. I don't think we need a soothsayer to make the conclusion for us.

[SquirrelJulietGarden]

Take the 2017-2021 market. If you bought anywhere between December 2017 and March 2018 you had a bitcoin worth between 10k and 20k.
Between that and May 2019 you couldn't touch it or you'd take a loss. Imagine that in that period you'd have a financial problem, needed to pay hospital bills, had a house fire, a burglary... You wouldn't be able to use your investment to cover that and you'd be able to come ahead in 2019 only if you bought below 13k because if you were unlucky to buy above that price you'd have to wait until the end of 2020 to come ahead, so 3 years of your assets being frozen. 

Only if Bitcoin does not change its history to make a new all time high with each new halving and four-years cycle. It will continue to give us to correct our mistakes of missing good chances to take profit in a previous cycle. If you miss all time high in 2017- 2018, you had many months to sell Bitcoin with price higher than 2017 and 2018 in 2021 to 2022.

I agree with you about money needed for emergency and by this, I agree that we never should spend all money to buy bitcoin. Most important reason is we might have to use it with a market price at loss.

[bluebit25]

At the present time, I still accept the fact that this market is highly volatile and its scale is still very small, so the investment portfolio with it will be an investment with the goal of generating income. More profit is a safe haven for assets that don't evaporate. It's potential for the future is something I fully acknowledge in terms of its acceptability in every sense, but it's not going to happen anytime soon. Traditional assets like gold have much more liquid bridges and gateways, making it easier for money to flow in and out of stocks, bonds and ETF. Bitcoin doesn't have that framework yet, but such volatility is still an opportunity for many people, including me.

[kotajikikox]

Previously, not only did the world consider bitcoin a highly volatile and high-risk asset, but even those of us who invested in bitcoin considered it a high-risk asset. But I think we should gradually change that concept as well as change the way we call it, bitcoin is no longer a risky asset. Recently AllianceBernstein, an asset manager with $699 billion, called bitcoin a safe haven and even more attractive than gold.

We cannot blame everyone mate because we have seen its volatility from the past and have also experience winning and losses because of this Behavior so yes we can trust or hate bitcoin depending in our decision and experiences .
but thanks to this team as they seems to be bringing more positivity to the bitcoin community .
 

For me, this is the first time I've seen a traditional company admit and call bitcoin a safe haven and consider it superior to gold. What do you think about this and should we stop calling bitcoin a risky investment?
https://blockworks.co/news/alliancebernstein-gold-bitcoin-returns

and if this is going to be popular, then I can see more of this traditional investors promote bitcoin in this same trust, leading us to be more compliant and trusting also supporting and investing more to the future.

[DYING_S0UL]

Bitcoin is volatile, and it always will be. I'm not sure how one would define Bitcoin as a safe heaven. Can you guarantee that the price will surge at a specific time? I don't think so. Then how can it be called a safe heaven? It's still highly volatile. Just a few days ago, Cointelegraph accidentally published a false article about the Bitcoin ETF spot approval, and the price had a pump, jumping to 35k$ dollars.

I think gold and silver, like physical assets, can be called safe heavens for assets. The market capital of gold and silver is huge. They aren't as volatile as Bitcoin; they can't be affected easily. Just a mere news was able to affect the Bitcoin market. Do you understand what I mean?

For long-term holders, yes, Bitcoin is indeed a safe asset. One can predict the market price by analyzing the previous year's history. But for the short term, I'm not sure what would happen.

[taufik123]

Bitcoin is volatile, and it always will be. I'm not sure how one would define Bitcoin as a safe heaven. Can you guarantee that the price will surge at a specific time? I don't think so. Then how can it be called a safe heaven? It's still highly volatile. Just a few days ago, Cointelegraph accidentally published a false article about the Bitcoin ETF spot approval, and the price had a pump, jumping to 35k$ dollars.

I think gold and silver, like physical assets, can be called safe heavens for assets. The market capital of gold and silver is huge. They aren't as volatile as Bitcoin; they can't be affected easily. Just a mere news was able to affect the Bitcoin market. Do you understand what I mean?

For long-term holders, yes, Bitcoin is indeed a safe asset. One can predict the market price by analyzing the previous year's history. But for the short term, I'm not sure what would happen.

You are right about that, Bitcoin cannot be categorized as a Safe Haven Asset that will provide asset stability at any time because Bitcoin has high volatility which makes price fluctuations quite drastic.

Price fluctuations can be influenced by various elements ranging from news that continues to be present which makes bitcoin go up and can even drop dramatically which is called FUD.

Gold can be a Safe Haven asset that is not too affected and can be for the long term, but this will take a long time to be able to provide maximum benefits.

Now comparing Bitcoin with Gold as a Safe Haven Asset is not suitable, both have different characteristics.
Bitcoin is suitable for those who want to get an investment that provides faster profits with rapid price fluctuations and of course, there are risks that must be borne.

[m2017]

Previously, not only did the world consider bitcoin a highly volatile and high-risk asset, but even those of us who invested in bitcoin considered it a high-risk asset. But I think we should gradually change that concept as well as change the way we call it, bitcoin is no longer a risky asset.

It's funny to hear this, but just because we stop calling bitcoin a high-risk asset, it doesn't cease to be such. Unfortunately, this is still the case.

Recently AllianceBernstein, an asset manager with $699 billion, called bitcoin a safe haven and even more attractive than gold.

This in no way changes the current “nature” of the bitcoin. These are the words of just one person and can't change the current state of affairs.

For me, this is the first time I've seen a traditional company admit and call bitcoin a safe haven and consider it superior to gold. What do you think about this and should we stop calling bitcoin a risky investment?
https://blockworks.co/news/alliancebernstein-gold-bitcoin-returns

I don’t think this is the first time this has happened, because something similar has been voiced before. Is bitcoin superior to gold? In some ways, yes. For example, in profitability, as well as in riskiness due to strong volatility. In my opinion, it is still too early to stop calling the bitcoin a risky investment.

[kryptqnick]

Bitcoin is more volatile than gold, and gold keeps rising in the long run if we look at decades of price dynamics. So I understand that it's more reliable and practical for some purposes, such as a country's reserves, and something that requires stability and can't allow a couple of years with the price 60+% down from the ATH, such as pension funds. But yeah, Bitcoin is showing itself as pretty reliable in the long run, and it's lovely if major investment companies start recognizing that. But what I find concerning is that I see only a handful of not very familiar websites pushing the news about AllianceBernstein and providing zero links to the proof, and I can't find the original source of this info (the memo by AB analysts they are referring to).

[Out of mind]

There was a time in the past when people made such plans and declared Bitcoin as a risky asset. And do we think that Bitcoin is risky to invest in, but currently Bitcoin is safer than all other currencies in the way that the demand for Bitcoin is increasing. Where people are currently investing their money in Bitcoin rather than keeping it in the bank as it offers maximum security to an investor. As the value of Bitcoin has changed and people are more trusting in Bitcoin. I think most of the people are investing in bitcoin now because it is better and safer to invest in bitcoin than investing in everything else.

[uneng]

Bitcoin has shown very positive performance on long run, and has fought inflation efficiently. This is the best investment alternative if you are thinking on holding for few years timeframe. If you hold gold, you will maintain your patrimony's value relatively stable, but if you invest in Bitcoin, you will grow your patrimony into something much more valuable. At least, that is what history shows us and that is what it's still expect to happen on the next bull season, after 2024's Bitcoin halving. The risk is always there, although at this point it's completely valid to take those risks in order to achieve something substantial futurely.

[2Pizza410000BTC]

Previously, not only did the world consider bitcoin a highly volatile and high-risk asset, but even those of us who invested in bitcoin considered it a high-risk asset. But I think we should gradually change that concept as well as change the way we call it, bitcoin is no longer a risky asset. Recently AllianceBernstein, an asset manager with $699 billion, called bitcoin a safe haven and even more attractive than gold.

For me, this is the first time I've seen a traditional company admit and call bitcoin a safe haven and consider it superior to gold. What do you think about this and should we stop calling bitcoin a risky investment?
https://blockworks.co/news/alliancebernstein-gold-bitcoin-returns

Bitcoin investment is not risky We ourselves consider this Bitcoin investment risky. For example, if we invest Bitcoin and do not use that investment properly, then Bitcoin becomes very risky for us. Bitcoin is never risky for those who invest and hold it properly. I also once did not trust bitcoin I thought it was high risk but whenever I entered bitcoin and slowly started to know everything here now I think this bitcoin is not risky at all. This Bitcoin investment is very safe and reliable. So we all need to stop calling this bitcoin risky.

[EluguHcman]

Impressive update. Left alone just as earlier said by OP, most persons who invested in past and after on engaged on it with a not 100% confident about the reliability of the the coin Bitcoin but as time goes, just as practically said that practice make an improvement.
So time goes where the industry terms to keep advance to build investors privacies and creating an integrity imagine to the industry on no going contrarily to its system and posture so as it advances to enhance its investors confidents.

I am only impressed that a firm as AllianceBernstein has made a big community relationship and interjection with Bitcoin but not that it triggers me to devote more solid believes in the Bitcoin crypto industry.
If Japan automobile industries would accept the trades and exchanges to fiat currencies in exchange and the big dogs in the World economy like Bills Gate could be part of the investors in the Bitcoin firm then it is a good to go confident and reliable.
However, the potentials to reality according to OPs update is termed to had brought more enlargement to the Bitcoin industry likely to trigger increment on value of the currency with the potentials increase to the values of the currency in the market.
More to come and more increments to add value rate to coins with the potentials to add profitable possibilities to its investors..