Cryptocurrencies Are Not a Safe-Haven Asset, Says Expert

Cryptocurrencies have not been used as a safe haven amid challenges the global economy has faced at the beginning of the year, one expert says.

The world has already seen a slew of market-shaking events this year including trade policy uncertainty, geopolitical tensions and the coronavirus epidemic, among others. With investors around the world struggling to find safe haven assets to insure themselves against potential crises, it was anticipated that many would turn to Bitcoin (BTC) and other digital currencies.

Doubts of crypto’s capabilities

However, some industry experts say that digital currencies have failed to serve as a safe haven. In a recent interview with Cointelegraph, Campbell Harvey, a professor of international business at Duke University, said that people value cryptocurrencies for transactional purposes and speculation.

“When you start talking about safe haven, it becomes really difficult to think are these really safe-haven assets because it’s just not obvious,”…