Samuel OskysThere is much geopolitical instability across the globe and this is bad for global financial health but could turn out to be a positive movement for the crypto community.
According to Cole Walton, co-founder of Plouton Mining:
As we saw this week, with the U.S. stock market (Dow) dropping -1.5% on the week and ending down -800 points or -3% for its worst day of the year on Wednesday (the 2/10-year Treasury spread briefly inverted signalling recession), the Donald Trump/Xi Jinping trade war could have very serious negative effects on traditional risk assets like U.S. stocks.
Global finance seems to be destabilizing and there are risks of recessions at any given moment, which are making investors look for safe-havens in assets like gold, silver and digital currencies.
Bitcoin in many occasions has been named the mirror of gold in the digital space, and since this is the case, it can attract new investors thus increasing demand and price.
Cole Walton expressed:
Bitcoin has shown new types of behaviour, actually rallying and acting as a safe haven when traditional risk assets, like US stocks, have had sharp declines.
When stock markets go down, there’s no apparent trend that the number one Cryptocurrency will follow the same movement. This means that investors would rather put their trust in Bitcoin if it continues to show more stability and less volatility. But still, investors have far less faith in Bitcoin than they do with traditional assets like Gold.
Even though Bitcoin is a self-proclaimed store of value, it still is as volatile as it was from the beginning of Crypto. In most recent times, the price of Bitcoin has been seen to pump and dump too many times. Bitcoin closed the year at closed to $19,500, at the time of writing the price of Bitcoin is $10,050 but 1 week ago it was close to $12,000 which proves it’s very much volatile.
But although it’s volatile, Bitcoin has gained trust and the financial community prefer it. It’s value increases with every development being made to it, technology-wise and legislative-wise. Bitcoin could potentially establish a better image in the near future.
