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Will Bitcoin be the new safe haven asset?

There are many skeptics of the international coordinated response to the 2008 Global Financial Crisis. The shared criticism from these skeptics, that include respected economists, billionaire businesspersons and the world’s most successful hedge-fund managers, is that if the 2008 policy responses of injecting liquidity (QE)and pushing down interest rates were emergency measures only then why are they still being implemented over a decade later?

Within a globally integrated economy national indices are strongly correlated. There has been massive price appreciation across G7 indices due to the injection of ‘cheap credit’ that has led to many companies only managing to survive by borrowing more. It’s estimated that 40% of the companies in the Russell 2000 are running at a loss; such ‘zombie corporations’ include Netflix and Tesla.

In the attached chart you’ll see that when one of these indices correct, they all do. Gold has historically performed as the ‘risk off’ asset, the safe haven trade when everything else looks too risky. Yet in an interview on RealVision (21/01/2018) Tony Greer of TGMacro asserted that gold has a ‘generational problem’ in that the next generation of investors would not be interested in investing in metals and metal companies when there’s new industries like cannabis compoanies and cryptocurrencies. In regards to gold he states; “I don’t see what gets them excited about this old school investment that really does trade like a barbarous relic”.

Also on RealVisoin (19/08/2017) Steve Bregman, President of Kinetic Advisers (AUM$5Billion) had this to say about Bitcoin:

With bitcoin, for the first time in history we have a currency that is not dilutable … and it can’t be counterfeited. If you want a defence against systemic risk, this (bitcoin) exists outside the system.Steve Bregman. President Kinetic Advisors.

CoinCompass is not a financial advisor nor a broker. If you wanted to invest in Bitcoin we teach you how to do so independently, confidently and securely. To attend our next workshop or online seminar, visit our events page.

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