Investors awakened Monday morning to a flurry of tweets, not by the incumbent US Presidents, but the CEO of TESLA, Elon Musk. The billionaire entrepreneur made exchanges teasing a potential for investments into bitcoin. Starting his thread off with “Bitcoin is my safe word”, it poses the question of whether or not Bitcoin may be a potential safe haven in the future.
If Bitcoin poses as a potential safe haven, then what happens to Gold or the Japanese Yen, which has historically been an investors top choice for investing in during crisis times such as the one we are facing. However, in face of its volatility, does it have potential?
As of today, the Bitcoin is valued at 23,553.90 US Dollars. As it isn’t pegged in anyway unlike a stablecoin, the price will continue to float unpredictably. However, the liquidity of the currency can’t be denied. With the ease of transferring Bitcoins from one user to another, it makes for a liquid commodity.
Adding to the fact that Bitcoins can be transferred easily, numerous services have popped up in recent years allowing for Bitcoin to be utilized as a form of currency. Despite its volatility, Elon Musk points out that it is similar to fiat currency, which is also not pegged unlike during the days of the Gold Standard.
Adding to the fact that Bitcoins can be transferred easily, numerous services have popped up in recent years allowing for Bitcoin to be utilized as a form of currency. Despite its volatility, Elon Musk points out that it is similar to fiat currency, which is also not pegged unlike during the days of the Gold Standard.
So is Bitcoin the new safe haven? It’s still too early to tell but if companies such as Tesla start investing in Bitcoin and large numbers of people continue to do so, it may find itself in the ranks of Gold and the Japanese Yen.
