Bitcoin Hits High Again. Will it Get Safe-Haven Status?

Bitcoin Hits High Again. Will it Get Safe-Haven Status?

Bitcoin hit the record high on Thursday evening, reaching $9,570. It surpassed the analysts’ expectation of climbing to $9,200 during the first months of 2020. Except for BTC’s rally, the cryptocurrencies market wasn’t overly volatile, though Ethereum, Litecoin, and EOS also increased significantly.

As Bitcoin’s growth conceded with the rise of gold prices, some experts speculate that Bitcoin can become another safe-haven asset, staking their argument on the fact that Bitcoin grew due to the geopolitical uncertainty. But others think that it’s too early to classify Bitcoin as a safe-haven.

Deutsche Bank issued that presently Bitcoin is too volatile to become a store of value, making such a conclusion due to the volatility of the asset over recent cycles. According to the bank, Bitcoin still represents a tiny portion of global payments. Furthermore, it seems that it isn’t on a trajectory to capture more shares of that in the near future.

There is also the case of regulations. Andrew Yang, a Democratic presidential candidate, noted that the discrepancy in the regulation of cryptocurrency between states is hindering innovation. According to him, the authorities need to regulate better the cryptocurrency used nationwide by the setting of new rules. But even with the rules’ restriction, cryptocurrency wouldn’t be impeded.

China is Testing New Digital Assets. What About Japan?

A few months ago, Japan announced that it wasn’t planning to launch its digital currencies any time soon. It seems that during the last weeks, the government changed its mind. Mostly due to China’s active campaign about CBDCs’.

Masayoshi Amamiya, Bank of Japan’s deputy governor, stated that the central bank must be ready to issue a digital currency should the need arise soon. The speed of technological innovation is very fast – said Amamiya. Moreover, the public demand for central bank digital currencies could soar in Japan. The government plans to be ready if that happens.

Japan would like to propose measures to counter China’s attempts as it is moving toward issuing digital yuan – noted the Japanese Parliamentary Vice-Minister for Foreign Affairs, Norihiro Nakayama.

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