Bitcoin has been on an upswing this year, at times spiking about 500%. Bitcoin is viewed as a disruptive technology, but lots of analysts haven't thought it would see widespread use. And, that current surge in pricing seems to assume massive adoption.
But whatever you think of bitcoin, no one has been touting it as a safe-haven. Until now. As Ian King of Investopedia writes in Bitcoin: Your New ‘SafeHaven” things may have suddenly changed:
On Monday morning, North Korea’s Foreign Minister accused the United States of declaring war after President Trump tweeted that North Korea "won't be around much longer." This hawkish rhetoric caused investors to sell stocks and move into "stores of value" such as cash, gold, and somewhat surprisingly, Bitcoin.
As the name implies, a store of value is any asset that can be saved and usefully retrieved at a later time. Anything can act as a store of value as long as such thing retains its value and can be exchanged for equal or greater value in the future. Perception is a key factor: The more an asset has acted as a store of value in the past, the more likely investors will flock to such asset in times of trouble and push its value higher; and this behavior becomes self-fulfilling.
In times of uncertainty, investors turn to cash and gold as stores of value. Now, apparently, you can add Bitcoin to the mix.
Read the source article at Investopedia
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