Was bitcoin’s price spike yesterday in response to the attempted Turkish military coup? Current events continue to make the case for bitcoin as an investment, according to Orange Peel Investments, an investment firm that describes itself as “long” on bitcoin. The company contributed an opinion about bitcoin’s role as an investment in Seeking Alpha.Turkish citizens, alarmed by an attempted military coup, began withdrawing cash from ATMsand banks, not knowing what the future held for their financial security. The same thing happened in recent years when uncertainties afflicted Cyprus and Greece. The U.S. witnessed a run on banks in 2008 in response to the housing market collapse.But what would happen if a more serious financial collapse struck the U.S.? What security would people have against severe financial insecurity?In years past, many people would have flocked to gold to hedge their futures against uncertainty over the money supply. Today, bitcoin has entered the fray as a complement to gold. Bitcoin and gold are both assets that investors can consider for times of financial distress. Bitcoin’s price hike shortly after the United Kingdom’s vote to exit the European Union might have reflected this sentiment.

Bitcoin Infrastructure Holds Key

Whether or not bitcoin assumes this role long-term depends on its operating infrastructure. Where gold retains its identity regardless of where it is stored, bitcoin is stored digitally and relies on a digital infrastructure. Bitcoin needs to withstand additional tests before proving itself as a secure haven for capital during volatile times.Bitcoin relies on a global technological infrastructure operating efficiently – at least at the level it operates currently, the investment company noted.The interest that governments have shown in applying blockchain technology to monetary systems has boosted the technology’s credibility, but thus far, no government is likely to effectively regulate bitcoin.Bitcoin’s very appeal depends in part on its resistance to regulation, combined with the fact that it operates in a peer-to-peer manner, without regard to geographical borders and central bank control.Bitcoin will get stronger if it continues to grow, just like general currencies, the company noted. Retail bitcoin buyers will have easier ways to acquire it in the near future.Also read: BTC price bumps the $680 ceiling

Questions To Consider

A downside to bitcoin is that it is not accessible to those who don’t understand it, which includes 95% of the world’s households who have no idea what it is.As bitcoin’s popularity grows, however, more people will know about it, contributing to its value appreciation. This benefits the cryptocurrency in two ways: as a speculative investment, in which investors believe its value will appreciate, and as a hedge against a global economic system led by central banks.In consideration of events in Nice and Turkey, Orange Peel Investments maintains a very small allocation to bitcoin. The company urges investors to consider the following: Have you considered exposure to bitcoin for the future?In the interest of full disclosure, Orange Peel Investments noted that it is “long” on bitcoin.

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