Nigel Green, the CEO of deVere Group, a recognized independent financial advisory organization, said that he considers Bitcoin is becoming a flight-to-safety asset during times of market uncertainty. This comes after increased tension between the U.S. and China. This is according to a recent report released by The Independent.
Bitcoin Could Become A Safety Asset
According to a recent report released by The Independent, Nigel Green said that the most popular cryptocurrency in the market, Bitcoin, is becoming a “flight-to-safety” asset in periods of market uncertainty.
On the matter, he commented:
“The world’s largest cryptocurrency, Bitcoin, jumped 10% as global stocks were rocked by the devaluation of China’s yuan as the trade war with the US intensifies. This is not a coincidence. It reveals that consensus is growing that Bitcoin is becoming a flight-to-safety asset during times of market uncertainty.”
He went on saying that Bitcoin is currently realizing its reputation as a form of digital gold. The digital asset has been trading similarly to gold since May, which shows that it is possible to consider Bitcoin a safe-haven, at least in moments in which tensions increase around the world.
The United States and China experienced a period of increased tensions related to their trade war. While the U.S. imposed tariffs to Chinese products, the yuan dropped to the lowest point in ten years. After it, financial markets, specifically in the U.S. reacted negatively.
At the same time, the Eurozone is also facing difficult times. Banks in the continent are currently facing very hard moments and could be close to collapsing if tensions around the world continue. This is why Bitcoin, as a new financial system, is gaining traction.
“Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin – which shares its key characteristics of being a store of value and scarcity – could potentially dethrone gold in the future as the world becomes increasingly digitalized.”
According to data provided by Google Trends, the search term for “Bitcoin” shows increasing interest since March 2019. In June 2019, Bitcoin’s interest grew to the highest point in an entire year. However, it remains far from the peak it experienced at the end of 2017 when Bitcoin briefly touched $20,000.
At the time of writing this article, Bitcoin is being traded around $11,350 and it has a market capitalization of $203 billion, according to data provided by CoinMarketCap.
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