With each passing day, Bitcoin becomes stronger; its qualities make it a recipient of the first place among the cryptocurrencies with the highest market capitalization. The mother of the entire ecosystem of criptoactivos was designed to become the best means of payment, to perform any type of transaction that can be present in the day-to-day; however, today it is more used as an asset of speculative value and refuge.
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Can I use Bitcoin as a value shelter?
Despite the fact that every day is more accepted as an asset shelter, Bitcoin is not the best place to secure funds, for now; below we explain why. There is no doubt that Bitcoin offers great potential; however, will spend a good period of time to achieve its main objectives. To achieve its main goal what less needs is to be an active speculative; and that is exactly for what is used today. The main goal of Bitcoin is to become the best alternative to cover the great weaknesses that has fiat money, mainly in a world where the Internet is gaining more space in our everyday lives. To do this, BTC uses a P2P network is decentralized eliminates intermediaries; a platform that lives on the internet, and therefore becomes an international currency. In this way we hope to see as a means of payment popular, but not as a store of value; but what if it turns on both? Some of the features that it offers to become an excellent shelter value are: Decentralization, high-security, nature deflationary, liquidity. Currently the massification of Bitcoin it is not enough to say that the goal has been accomplished, there are many obstacles you have had to face; it is not for less, governments are not very interested in coins decentralized, they need to be in control, however, may cryptocurrencies are not so far away from dethroning the fiat money entirely. As I mentioned, with each day that passes, Bitcoin becomes stronger; and not necessarily by price, but rather by the expansion and acceptance that has obtained in recent years. During June of 2019, Bitcoin managed to exceed the USD 13.500 after an excellent performance throughout the year. This situation is attracting new investors, which mainly treat the currency alpha as a value shelter in the midst of a turbulent global economic situation. Despite the fact that at present the movements of the BTC are not highly correlated with those of Gold, throughout this year we have been seeing a substantial increase is an interesting correlation; especially in specific occasions. While at the beginning of August Gold climbed towards the psychological level of $ 1,500 per ounce, other active followed your steps, the Bitcoin. According to an analysis by Bloomberg, the correlation between Bitcoin and the Gold has gone from 0.496 for the past year, to a maximum of 0.827 for may of the current year. To understand the correlation between assets, a coefficient of 1 indicates a perfect correlation, while -1 indicates a correlation perfectly opposite. Correlation between Bitcoin and Gold. Source Bloomberg. Bitcoin value shelter In the above image we can see two graphs, one of the relationship of the movements to August 2018, and another for may 2019. The grey section indicates the percentage of movements bullish correlated, in blue the movements bears, and black when they moved in a way contrary. The great features of BTC; in many ways, better than the Gold, has led to a position as a good value of shelter, mainly in the environment of uncertainty present. The tension between the united States and China, a Brexit confusing, and large economies of the world slowing are some of the signs that lead traders to think of a possible economic recession. However, Bitcoin is not yet a value refuge par excellence; this is the section where if dominates the gold as storage of wealth with thousands of years of history. Using the comparison tool on TradingView we can verify that there is still no reliably correlated between the Gold and the BTC. Below is the sample: Comparison of graphs BTCUSD vs XAUUSD. Temporality daily. As you can see, on repeated occasions, the movements are inversely related, however, some impulses upward if that is related in a positive way, several of them caused by news that increased uncertainty in the markets. To see how well you can see a positive correlation I bring the following example: Comparison of the graphics CADJPY and USDJPY. Temporality daily In this case, the correlation is more than 0.95; where 1 indicates a perfect positive correlation. You begin to observe a potential increase of the correlation between the Gold and the Bitcoin, you might think that the Bitcoin has already taken a prominent place among the best values refuge of humanity. The following two tabs change content below. Creative editor and trader of cryptocurrencies, currencies, fiat, and commodities.