In Nov 2017, when the military took over the Zimbabwean government, the price of Bitcoin was selling at a premium on Golix (Zimbabwe’s Bitcoin exchange) The price of Bitcoin was around $7,000 on Bitfinex but selling at $13,499 on Golix. The political tension and uncertainty at that time made people rush for Bitcoin as a safe haven from the dwindling local fiat.
In March 2013, in Cyprus, during the European debt crisis, the government decided to limit bank withdrawals for its nationals. People were only allowed small withdrawals. The price of bitcoin soared from $45 to $90 during that time of economic uncertainty and even went to surpass $200 in the weeks that followed as people rushed to buy bitcoins amidst fear and panic.
Venezuela is suffering from hyperinflation with its local currency have diminished in value. This had led to a surge in bitcoin purchases in the American country as the nationals see it as a safe haven.
These are just a few cases where peope have rushed to buy bitcoin in cases of political and economical uncertainty. Fiat is slowly proving to be unreliable and in the mercy of the unpredictable Central government. Even money in your bank account is not safe anymore during a political/financial turmoil.
For a long time gold has been regarded as a safe haven during such times but bitcoin is slowly starting to stamp its authority.
What makes bitcoin unique?
Bitcoin and gold have got similar features that make them preferred safe havens:
√ They are limited in nature
√ They are not bulky and can be transferred across borders.
√ Can be used for transactions.
But one major flaw of gold that makes bitcoin unique is that gold can be faked. Yes, there have been many cases of fake gold being sold to unsuspecting individuals. But you can’t fake/duplicate bitcoin and this makes it more appealing.
When it comes to returns to your investment bitcoin is also proving to be far ahead than gold. On average bitcoin brings in better returns than gold on an annual basis.
With the stock market crash looming before the year 2020 as predicted by financial analysts, do you think bitcoin will eventually become the ultimate safe haven?
Ref:
https://cointelegraph.com/news/bitcoin-will-be-safe-haven-during-next-stock-market-crash-says-expert
https://captainaltcoin.com/would-bitcoin-btc-be-a-safe-haven-in-case-of-an-economic-crisis/
https://www.bitcoinmarketjournal.com/bitcoin-investment-safe-haven/
https://www.coinspeaker.com/2017/09/07/cryptocurrency-gold-safe-haven/