In the ever-evolving narrative of bitcoin, safe haven, or is it speculation?

Bitcoin is a young currency, is still searching for its own identity. Big news, whether inside or outside of the cryptowereld, you can have a great impact on the stock price. In the meantime it depends, everyone has their own value judgment on bitcoin. Some people think bitcoin is the digital gold, while others find it to be nothing more than a speculatiemiddel. However, it is still to soon to make judgments about what bitcoin is?

Bitcoin is not yet an adult

Bitcoin is now more than eleven years of age. In those eleven years, the cryptomunt have a total value of more than 160 billion u.s. dollars to achieve. That seems like a lot, but when you compare it to other markets, it is still a very low amount.
By way of comparison, all the gold in the world, is approximately 8 billion dollars. The aggregate market value of bitcoin is its perfect match: a 50-in.
But we’re not quite there yet. All of the shares of worldwide 85 billion dollars worth of data from the organisation itself. The aggregate market value of bitcoin is its perfect match: a staggering 531 times!
This shows how small the market for bitcoin actually is. With a price tag of more than 9,000 dollars seems to be a very mature currency, but in reality, it may be a relatively small amount of money, the price is well let it rock.

A single utterance may good effect

We don’t have to go back to the example of these strong fluctuations of the exchange rate. On the 24th of October last year, said the Chinese president, that he’s blockchain is an exciting technology thought. The decision was met with great enthusiasm in the cryptowereld, and the next day shot to the bitcoin exchange rate by 40 percent.

The enthusiasm, however, was to explain China to take many drastic steps to make cryptocurrency out of the doors. That is, the Chinese president, is positive about the blockchain for a lot of investors as a signal to get bitcoin is to buy it. And to think that Xi Jinping is not the word bitcoin in the mouth for me.
The market is so young, and bitcoin is quick to respond. But bitcoin is seen as a safe haven against global uncertainties, at least as a speculatiemiddel?

Bitcoin as a safe haven in 2013

One of the first descriptions of bitcoin as a safe haven could be found for 2013. In that year, the Cypriot banks are in deep trouble. Thanks to the help of the European Central Bank enabled the banking system just won’t let them down.
One of the measures was a one-time tax on all bank accounts. The inhabitants rushed to the atm to get cash to take on, so they are exempt, and could be part of this tax. This is a massive run on the bank meant that a lot of people have no cash could be record.
During this period, it increased the bitcoin, with no less than 87 per cent, from 47 dollars to 88 dollars in a little over a week. CNN has described bitcoin as a safe haven, but with a note in the margin: ‘Bitcoin is an unusual place for the safety to locate it. It is a four-year-old digital currency developed by a hacker who still remains anonymous.’

A safe haven in a political conflict

A more recent example of bitcoin as a safe haven this year. At the beginning of January saw the tensions between the United States and Iran will be high on it. On the 3rd of January, it was announced that an Iranian general Soleimani has been killed by a Us air strike in Iraq. The uncertainty is increased as well, on Twitter, talked to the people from a Third world War.
During this period, the price of a bitcoin is very similar to the price of gold. Gold is seen by many as a safe haven, a beschermmiddel at the global level of uncertainty.
Below, you can see that the price of a single bitcoin (in green) compared with that of gold (in orange). The movements are sometimes a bit different, but both of the quotes show the same upward trend.

Corona virus, bitcoin is still speculatiemiddel?

However, moving bitcoin, sometimes, will also join the market. For example, last week, when the situation in and around the corona virus has worsened. As of the end of February, dove into bitcoin, along with the Dow Jones down. Below, you can see that the price of bitcoin is in the green, and the stock market is in the red.

It Is bitcoin, therefore, is a speculatiemiddel? Peter Schiff, stock trader, and an advocate of the gold will be. Schiff predicted that the economic crisis of 2008, and continues to believe in gold…. In his view, bitcoin is just a speculatiemiddel. He sticks to his opinion that they are not under the chairs or couches:

You have to have a label on the bitcoin paste?

The fact that bitcoin is moving between safe-haven and speculation, does not need to be a problem. Some see this as a strong feature, bitcoin does never meet. Bitcoin is the honey badger of money, he has to follow his own path.
It sometimes seems that the movement of bitcoin is completely arbitrary, as the following tweet shows. Stocks go down, gold is going up, and bitcoin is doing just what he wants:

You can see that it would be impossible to have a label on the bitcoin paper. But it wasn’t. Bitcoin was designed as a response to the financial crisis of 2008, as well as the right to exist, and can be found in the very first transactieblok on the blockchain:
‘Chancellor on brink of second bailout for banks.’
The text is referring to a newspaper headline of the British newspaper The Times. In other words, it is a crisis like in 2008 can never happen again. An independent, decentralized digital currencies, like bitcoin, may be the power to give back to the people.

About the author

Jeremiah Faber

Jeremiah Faber

Jeremiah is an explorer by heart – both in the physical and the digital realm. A traveler, Jeremiah continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Jeremiah and through his business acumen has gained financial profits as well as fame in his business niche.