Attention Economy


Friday, March 11, 2022

Bitcoin - A Safe Haven Asset?

Bitcoin Was Made for This Moment. So Why Isn’t It Booming?
https://www.nytimes.com/2022/03/11/technology/bitcoin-ukraine-russia-roose.html
Long hailed by its advocates as a safe hedge during uncertain times, Bitcoin’s value has fallen steadily in recent weeks.
 
My take from May 2021:
https://thehill.com/opinion/finance/554998-is-bitcoin-the-future-of-money
“If not the future of money, can we make a case for Bitcoin as digital gold? Proponents argue that since Bitcoin, by design, is limited to a maximum of 21 million units, it can act as a stable store of value. Given its short history and its intangible nature, it is unclear that Bitcoin offers a true alternative to traditional gold. Gold has a long history as a medium of exchange, and the yellow metal has impressive physical properties that have caused humans to value it highly for thousands of years. Even today, many societies widely use gold for jewelry and ceremonial purposes. Additionally, from a financial standpoint, Bitcoin is currently too correlated with risky assets to act as an effective inflation hedge”.