Bitcoin has a fair amount of mainstream critics and “haters” when it comes to its value and relevance as a globally traded currency. Some of this is borne out of an equal amount of fear and ignorance of what Bitcoin is and represents, while a portion is also based, legitimately, on recent events like the Hash Ocean collapse. Be that as it may, Bitcoin has proven to be quite valuable and relevant to those looking to protect their wealth under these ever more turbulent economic times. People stop snickering at Bitcoin when they actually do the research and discover the impressive value the digital currency has to offer. When it comes down to it, the smart money has been on Bitcoin for quite awhile, and the mainstream is beginning to notice this fact.
Bitcoin becomes a financial “safe haven”
In the world of economics, the term “safe haven” is a relative term. From the fall of 2013, through the Mt. Gox collapse, to early-2015, Bitcoin was seen as a laughing stock, rising 800%, only to crash back to previous levels. Well, nobody's laughing now, especially those invested in the British Pound and Euro. According to Bloomberg, Bitcoin has become less volatile than the Pound since the Brexit, and this may not change for some time. British pound values have dropped to 30-year lows and investors are moving quickly into BTC for relief. Jesse Powell, chief executive officer of San Francisco-based Kraken, the world’s largest bitcoin exchange in euro volume, says:
"A lot of people are buying Bitcoin for pounds and Euros. Our (euro-based Bitcoin) volume has doubled…..we saw a huge spike in that market. People are looking for a safe place to keep their money, amidst all of this uncertainty.”
World’s best performing currency
For those caught unaware of the Bitcoin value equation over the last eighteen months, Bitcoin was simply the world’s best performing currency in 2015, gaining over 35% against the global reserve currency, the U.S. Dollar. This was about 4X the growth of the Dollar itself during the same time period. 2016 is proving to be even better, as Bitcoin started the year in the $430 range, and is now trading in the mid-$600’s, an almost 50% increase in value. Gil Luria, managing director at Wedbush Securities Inc., told Bloomberg via email:
"I believe bitcoin has seen some of the benefit from the Brexit over the last few days as consumers are buying bitcoin as an asset uncorrelated with the global monetary system, much like gold. If other countries in the EU pursue a similar path, I would expect some of their citizens to look at the British experience and want to protect some of their funds in bitcoin. Even though bitcoin is volatile, volatility is better than knowing your money will be devalued by 10-30 percent within a few weeks."
Strong investment case
Whether a mainstream investor understands what a Bitcoin is or not, it doesn’t take many math skills to see such Bitcoin returns as a strong investment case. As the image provided by Bloomberg indicates, nothing is appreciating at the rate of Bitcoin in 2016, and last week’s “bitcoin halving” may only increase this economic advantage throughout the rest of 2016.
Those who have invested in Bitcoin are prospering, while those deep into the Euro and British Pound are ready to make nice with “The Internet of Money” like never before. This reminds me of an old bank commercial, “What’s in your (digital) wallet?”
from :
http://cointelegraph.com/news/bitcoin-valued-as-financial-safe-haven-compared-to-other-major-currencies
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