Bitcoin Bought By Speculators, Not Safe Haven Seekers: Schiff

Bitcoin Bought By Speculators, Not Safe Haven Seekers: Schiff

All eyes are back on the worlds largest digital asset as bitcoin price shot up over $10,000 yesterday. BTC appears to have found a little stability in this price range for now, but there are still the detractors that are adamant that it is a speculator driven bubble.

Peter Schiff Back Bashing Bitcoin

The safe haven debate has been raging for most of this year as bitcoin lifted itself off the ground to record a gain of over 170% since January first. Traditional old school investors, who prefer stocks and commodities and are largely averse to new technology, continue to berate the digital asset claiming that it has made those gains purely on speculation.

But dont believe the hype that this rise reflects safe haven buying, similar to gold. Bitcoin is not being bought by investors searching for safe havens, but by speculators betting that they are!

The fact that both assets have had a sterling year says a lot. Both bitcoin and gold are offshore assets which are immune from central bank meddling and capital controls. As we have seen in China and South America recently, governments have slapped restrictions on what people can do with their own money.

The smart ones will be driven to forms of finance that subvert these monetary constraints. Gold is a good investment, but it is not really practical in terms of ease of movement and cross border transactions. You cant take a bag of gold through an airport with you. Bitcoin, on the other hand, works much better and by design can be sent anywhere on the planet in minutes.

Safe Haven Debate Continues

Of course, there is speculation with it, as there has been with most emerging asset classes. As Vijay Boyapati pointed out there is speculation on the premise of bitcoin becoming a safe haven.

Investors are speculating that #Bitcoin will become a safe haven (reserve asset) in the future because of its superior monetary attributes (to gold and the dollar). Nothing can go from zero to being the worlds monetary base without speculation.

Trader and analyst Luke Martin added that in terms of performance, BTC is way ahead. Gold is up around 19% on the year which is a fraction of bitcoins gains.

Bitcoin isnt a safe haven asset yet, which is fine! In the meantime it can play the best performing asset while having basically zero correlation to anything else role in a portfolio.

Seasoned investors are likely to have a bit of both in their portfolios so the constant bitcoin bashing from reputable investment commentators comes across as a little imperceptive at times.

How does bitcoin stand in the safe haven debate? Add your arguments below.

Images via Bitcoinist Image Library, Twitter: @PeterSchiff, @VentureCoinist

The post Bitcoin Bought By Speculators, Not Safe Haven Seekers: Schiff appeared first on

03.09.2019 / 07:40 60
Bitcoin Failed Safe Haven Test Again: Goldbug Schiff Bitcoin Failed Safe Haven Test Again:
Bitcoin proponents have rallied round to denounce gold bug Peter Schiff after he said the cryptocurrency has proven it is not a safe haven. Schiff:
Gold Price Hits New Six Year High, But Fake Bars May Benefit Bitcoin Gold Price Hits New Six Year High, But
With political and economic tensions escalating, investments in safe haven assets such as gold are on the rise. The commodity has often been compared
Safe Haven? Bitcoin Price Falls Below $11,000 Alongside Gold Bull Rejection Safe Haven? Bitcoin Price Falls Below
Bitcoin price has been rallying throughout 2019, and most believe that the crypto asset is about to embark on its greatest bull run yet. As global
Chinese are Not Buying Bitcoin: Peter Schiff Chinese are Not Buying Bitcoin: Peter
The Chinese investors do not think of bitcoin as asafe-haven asset, and they are not buying it, believes Peter Schiff of Euro Pacific Capital. The
Prominent Investor: Mainstream Finance Is Now Considering Bitcoin As a Safe Haven Asset Prominent Investor: Mainstream Finance
Over the last month as trade tensions between the United States and China heat up, adding pressure to an already delicate global economic fabric,
Bitcoin Cash Being Accepted by Gold Bug Peter Schiffs Firm Bitcoin Cash Being Accepted by Gold
The very famous while bearish on cryptos gold bug Peter Schiff is not so much of a bitcoin-lover. For some time now he has commented on various
Comments (0)
Add a comment
Comment on