Bitcoin is Not A Safe Toevluchthaven and That – s OK

| 0

Bitcoin is Not A Safe Haven and That - s OK

There has bot a lotsbestemming of talk about investors looking to Bitcoin spil a safe toevluchthaven for their investment portfolio. Safe toevluchthaven markets are very petite and hard to get into. Bitcoin may not gezond that bill spil flawlessly spil some people think it does.

Now that the Brexit doom script has happened, there is a lotsbestemming of uncertainty across the markets. Gold is surging, Bitcoin is holding stable, and capital markets are eyeing significant losses. Notably, the Pound Sterling and Yuan are losing value right now. But unlike what many people expected, investors are not exactly fleeing to Bitcoin ter droves.

Understanding The Safe Toevluchthaven Term

That being said, Bitcoin is often referred to spil a “safe toevluchthaven,” which by definition is “an investment expected to retain its value or even increase ter value te times of market turbulence.” Bitcoin seems to gezond this bill, albeit the chances of enlargening or decreasing ter value are theoretically equal.

Gold is an visible safe toevluchthaven asset, and it is widely recognized spil a store of value. Other precious metals may fall into the same category, spil well spil government bonds. Do keep ter mind investments considered spil safe havens will alter overheen time, tho’. Moreover, there is no safe investment for all down market traders. It is also possible for assets to be mislabeled spil a safe toevluchthaven, thanks to fortuitous buying and selling.

This is bitcoin’s coming out party spil a global safe toevluchthaven investment. Amazing

Bitcoin will often be mislabeled spil a safe toevluchthaven, mostly due to the fortuitous buying and selling opportunities. There is always a chance for the Bitcoin value to go up or down at any given time. Executing trades at the right time can result ter healthy profits for experienced traders. However, from a short-term investment perspective, Bitcoin is not such a safe toevluchthaven, unless one can influence the market directly.

Several years ago, Bitcoin wasgoed far more volatile than it is today. Granted, the value of this cryptocurrency has bot fluctuating fairly a bit overheen the past few weeks. The profits or losses to be made, however, were much thicker te 2013 than they are right now. If there is minimal slagroom for profit, it is doubtful investors will see Bitcoin spil a safe toevluchthaven.

If an investor were to waterput ter ten million of his or hier funds into Bitcoin, there would be an instant reaction. At this time, that would result te overheen 15,550 bitcoin being bought ter one go. Such a movement would voorzichtig markets and potentially trigger others to sell their coins. Doing so could negate the short-term gains the investor had hoped for. If he or she then determines to dump their coins again at a petite loss, the Bitcoin price would take a significant succesnummer.

Bitcoin’s Fine The Way It Is

Ter the end, Bitcoin enthusiasts have to keep ter mind fancy buzzwords – such spil safe toevluchthaven markets – are only vaporware ter the long run. Whether or not cryptocurrency is a safe toevluchthaven, does not matter. Bitcoin has bot around for seven years, and it is not going away anytime soon. Investors still need to warm up to the idea of cryptocurrency, but that is OK.

Growing the Bitcoin ecosystem should not be rushed either. If investors were to obtain large chunks of the available coin supply, they could collude and attempt to exert some control overheen the network. That is not a favorable situation either by any means. Slow and stable will win this wedstrijd, and Bitcoin is doing just fine ter that regard.

What are your thoughts on Bitcoin [not] being a safe toevluchthaven market? Let us know ter the comments below!

Pics courtesy of Shutterstock, EconomyWatch

Related movie: Coinbase – Vat Two: Bitcoin, Ethereum oder Litecoin Kaufen & Verkaufen

Leave a Reply