INVESTOPEDIA - ''What is a Safe Asset? Safe assets are assets which, in and of themselves, do not carry a high risk of loss across all types of market cycles. Some of the most common types of safe assets across history includes real estates properties, cash, Treasury bills, money market funds, and US Treasury mutual funds. ''
When it refers to ''historically'', it is referring to the after 1900 period, because they have forgot to include GOLD as a safe asset.
On what we are concerned, as for definition, Bitcoin can not be referred to as - a safe asset-, because of its short history. It did not when thru enough market cycles, to be considered safe asset.
Yes, it has its own cycles from 2009, that have proved a strong recovery after every down cycle, but is it enough to consider it a safe asset?
BITCOIN like any other asset, it is strongly influenced by the world economy. The last BULL RUN happened after Biden announced massive printing of USD, in order to be offered to US citizens to invest and grow US economy.
So it makes sense for BTCUSD price to rise, if people had money to buy.
But what about now, is it a good time to invest in BITCOIN?
1. Dollar is loosing in value, because all of that money print and the inflation it caused, it starts to feel now in the US economy.
2. The last few years, the COVID19 virus, has destabilized the normal way of life, it changed the spending style ( online redirected growth ), and has affected so many other different types of business. This might be part of evolution, or progress, but who know when, how, or if?
3. Before the today tension between US and Russia-China, it was on the Trade War with China, on Trump period. It seems like people have forgotten about his Tweets, because they where replaced by Elon Musk now.
4. Payback Time! The USD was established as main world reserve currency at the end of WW2. That was not so long ago, not even 100 years. Now, so many countries around the world are coming together to replace the USD with another currency, probably YUAN.
But one thing is for sure, the history is written with every day that passes, and a new way of life will come.
Considering the all above, will you invest in Bitcoin? Or, to make it more drastically, would you sell your house today to buy Bitcoin? I hope the answer is no. Think about the investing firms, banks, funds, governments, etc., what would they choose as safe haven? Honestly, probably not BTC. These type of institutions will not choose a new type of asset, unregulated and with almost no history.
At this point, Bitcoin is still a speculative asset with high risk of loss, and for those who think otherwise, just take care, you are not smarter than the governments or banks, you are just euphoric to make 1000% in the next bull run.
Don't Stumble Trading! Trade Safe!
When it refers to ''historically'', it is referring to the after 1900 period, because they have forgot to include GOLD as a safe asset.
On what we are concerned, as for definition, Bitcoin can not be referred to as - a safe asset-, because of its short history. It did not when thru enough market cycles, to be considered safe asset.
Yes, it has its own cycles from 2009, that have proved a strong recovery after every down cycle, but is it enough to consider it a safe asset?
BITCOIN like any other asset, it is strongly influenced by the world economy. The last BULL RUN happened after Biden announced massive printing of USD, in order to be offered to US citizens to invest and grow US economy.
So it makes sense for BTCUSD price to rise, if people had money to buy.
But what about now, is it a good time to invest in BITCOIN?
1. Dollar is loosing in value, because all of that money print and the inflation it caused, it starts to feel now in the US economy.
2. The last few years, the COVID19 virus, has destabilized the normal way of life, it changed the spending style ( online redirected growth ), and has affected so many other different types of business. This might be part of evolution, or progress, but who know when, how, or if?
3. Before the today tension between US and Russia-China, it was on the Trade War with China, on Trump period. It seems like people have forgotten about his Tweets, because they where replaced by Elon Musk now.
4. Payback Time! The USD was established as main world reserve currency at the end of WW2. That was not so long ago, not even 100 years. Now, so many countries around the world are coming together to replace the USD with another currency, probably YUAN.
But one thing is for sure, the history is written with every day that passes, and a new way of life will come.
Considering the all above, will you invest in Bitcoin? Or, to make it more drastically, would you sell your house today to buy Bitcoin? I hope the answer is no. Think about the investing firms, banks, funds, governments, etc., what would they choose as safe haven? Honestly, probably not BTC. These type of institutions will not choose a new type of asset, unregulated and with almost no history.
At this point, Bitcoin is still a speculative asset with high risk of loss, and for those who think otherwise, just take care, you are not smarter than the governments or banks, you are just euphoric to make 1000% in the next bull run.
Don't Stumble Trading! Trade Safe!