If you bought one hundred dollars in worth of bitcoin in 2010, it’d be worth eighty eight million dollars nowadays. Bitcoin was worth 0.003 cents in 2010. However, the future can’t be expected and the path to a hit investing is not easy. For those not intimately familiar with cryptocurrency, bitcoin has been risky, in spite of the fact that a few have referred to as it a safe haven.
Arjun Kharpal, a CNBC technology correspondent, argues in a latest opinion piece towards those analysts who stated that bitcoin is a safe haven asset for traders. Numerous analysts have claimed that one motive for bitcoin’s continued increase of late is that traders are searching for a safe haven asset for their money as the stock marketplace has been less reliable. Bobby Lee, chief government officer of BTCC, has said human beings flip to bitcoin the way they used to show to gold while searching for a safe haven for property.
Arjun Kharpal mentioned that he has never believed bitcoin to be a safe haven. Kharpal stated bitcoin’s performance during the last 12 months in comparison to the Nasdaq, a technology index, and gold demonstrates that bitcoin is just like the Nasdaq. From mid June 2016 onward, the Nasdaq and bitcoin have progressively grown. Nasdaq broke the 6,000 point barrier and keeps to growing. Bitcoin, appears to hit a new all-time high almost every day. In evaluating bitcoin’s trading pattern to gold shows, bitcoin isn’t as secure of an asset. Gold found huge assist from mid June 2016 to middle of October. Bitcoin, was not showing huge change at the time.
As soon as President Trump was elected, many traders moved from gold to riskier assets, wondering the new administration might rise spending and reform taxation, thereby boosting stocks. Gold continued to decline even as bitcoin rose. Gold did discover some assist in the first few months of this year, but bitcoin has persevered to set new highs again and again.
Arjun Kharpal said:
“Investors are flocking to bitcoin, not for stability, but for higher returns. Bitcoin has spiked 150% year to date. Buyers who still think bitcoin is a safe haven asset are mistaken.”