When the dust settles, what will remain?
Bitcoin, it can be argued, was created as a reactionary tool against the financial markets that laid waste to global economies and wrecked the world order during the recession of 2008. Political and economic turmoil heralded Bitcoin into existence and by the looks of things, political and economic turmoil have buoyed the BTC price with every ripple they send out into the world economy.
At first, cynics opposed to the financial world and those envisioning an economic meltdown were drawn to the cryptocurrency world. As time went on however, that cynical attitude was replaced with one laced with common sense. With growing financial, economic, trade-related, and political uncertainties ravaging markets and governments for the past few years, Bitcoin, like many other safe-haven financial assets, began gaining popularity.
In a year of stock market volatility, currency manipulation, and a global trade war(s) between economically prominent countries, a currency that is decentralized from larger financial ethos would seem like an effective hedge against the world’s political turmoil.
SAFE AND SOUND
Bitcoin has been the most volatile financial asset over the past few years, with regular rallies and free-falls. It would at first, seem absurd to label the cryptocurrency as a ‘safe asset haven.’ However, in light of recent political shifts causing economic uncertainties, Bitcoin is being likened to an anchor.
Tom Lee, Head of Research at Fundstrat and all-around Bitcoin bull, is of the belief that this uncertainty stemming from political and economic turmoil manifested on global financial charts could be good for Bitcoin and could position it as a hedge against the same. Veering away from its inverse correlation with the U.S dollar, Bitcoin has changed its colors in 2019, claimed Lee. Bitcoin has moved to a negative correlation with the stock market and surprise-surprise,