Move Over Safe-Havens, There's a New Player in Town

Move Over Safe-Havens, There's a New Player in Town
Move Over Safe-Havens, There's a New Player in Town
Move Over Safe-Havens, There's a New Player in Town Investopedia

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


The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex instruments include forex, stock indexes, commodity futures, and economic events.

Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.