Bitcoin may not be a safe haven but seems to be in recovery mode

While many both within and without the cryptocurrency movement have warned of the extreme risks involved in investment in the cryptocurrency area some have argued that a coin such as Bitcoin actually can act as a safe haven in turbulent times much as gold does for investors in the stock market.

The authors of the CoinDesk analysis phrase the argument as follows: “Bitcoin, the cryptocurrency advertised as digital gold due to its difficult means of production and limited supply, is expected by some to act as a “safe haven asset,” one that rises or remains stable in times of economic turmoil (just as its metal companion traditionally has).”

Reasons Bitcoin is not a safe haven

The volatile price swings make Bitcoin a poor choice for a safe haven. While it did trade for some time with low volatility lately this is not the rule but more the exception. It also suffers from dropping values this year not the ideal for a safe haven. The article points out…