Though talks about bitcoin becoming the safe haven have been going on for some months now, it is starting to be a fact. After the devaluation of the Chinese currency, bitcoin is rising non-stop, becoming the safe haven of the market.
The Chinese currency is at its lowest in a decade. Stocks are also dropping, and emerging market currencies are also getting affected. Bitcoin jumped 10% as the rest of the market was rocked by the Chinese currency’s behavior.
Usually, whenever something goes wrong with the global economy, traders jump to the biggest safe haven of the market: gold. This time, most of the traders jumped to bitcoin. Bitcoin is slowly becoming digital gold, realizing its full potential. One thing everyone needs to understand is that people realize the importance of ease of storage. Gold is an indirect investment, as you rarely buy/invest in gold and end up keeping it at home.
Bitcoin is easy and safe. You invest, you buy, and you have full access to it. It’s highly liquid, and has even bigger potential that we realize as we digitalize more.
What’s the reason behind the jump to BTC?
As the trade-war worsens, the global economy goes with it. Central banks all over the world are cutting rates and trying to stabilize the degrading economies. Investors are trying to avoid this turmoil by sticking to one and only currency that gets rarely affected by the politics: bitcoin.
Brexit is not helping the issue either. It is becoming more evident that the worsening of the global economy is unavoidable. The challenges that keep showing up on a regular basis scare investors and traders. The easiest way to keep your funds safe is to take advantage of the new market safe-haven, bitcoin.