If bitcoin is digital gold, then it must be a haven in times of crisis - a "Risk-off" asset.
Any thoughts of bitcoin being a safe haven have been put to bed in the past 10 days and can be found there thrashing in their own clammy sweat, racked by fever-nightmares of 2018.
The question is, can bitcoin become a safe haven? We may be about to find out.
Born during the last global financial crisis, bitcoin has yet to see one.
In the CoinDesk Research white paper, "Is Bitcoin a Safe Haven?" we look at some of the theories around how bitcoin might perform during a macroeconomic crisis and present a few metrics that might be used to measure bitcoin's response.
Bitcoin vs. ETH & Bitcoin vs. XRP. Bitcoin is the only crypto asset about which rational people could even discuss a haven narrative.
If bitcoin is becoming a "Risk-off" asset, bitcoin returns ought to start decoupling from other crypto assets.
None of this is to say that bitcoin doesn't have a credible story as a safe haven asset.
The results are mostly similar to the 30-day returns we used in the white paper, "Is Bitcoin a Safe Haven?" They also match the results we obtained using weekly returns.
In the white paper, we also look at data from fiat onramps to bitcoin in emerging markets, as well as the behavior of long-term holders, tracked via time stamps of ownership records on the bitcoin blockchain.
Is Bitcoin a Safe Haven Like Gold? These Four Charts Say Not Yet
gepubliceerd op Oct 11, 2019
by Coindesk | gepubliceerd op Coinage
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