Is Bitcoin the next "Safe Asset"?
Is Bitcoin the next "Safe Asset"?

By utaini | Crypto, Travel and more | 13 Jan 2020


Earlier this January, the tension between the US and Iran pushed the price of Bitcoin up to $8,200. Once the tension was a bit ease the value of the BTC decreased to $7,800. This movement is similar to the one that had the value of Gold, of Petroleum and all the things that have always been considered a safe asset.

Can we consider at this point Bitcoin as a Safe Asset? I don't think so at this moment.

The value of Bitcoin is everything but stable. The price change on a daily bases (even if it has a positive trend) and it is not guaranteed that it will not drop back to the value of the middle of December when it was about $6,000.

Experts of Bitcoins say that in 2020 the value is going to increase, but they have different ideas about "how much" it will grow. Bloomberg says that the value could increase up to $14,000, Sonny Singh said that BTC will break its record of $20,000, Mike Novogratz forecasts a maximum of $12,000. Between all these voices and discussions, Peter Brandt is the only one that forecasts a drop of the price to $5,500 next July (source).

As you can see, the forecasts are totally different one from another. This is one of the reasons why Bitcoin cannot be considered a "Safe Asset".

What do you think about this? Is Bitcoin safe enough? If it is so, is it for the short term or for the mid/long term?

 



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