Bitcoin is given the role of a safe haven and is progressing towards becoming a safe investment tool.
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Introduction
While the world is shaken by the trade wars that started with US President Trump, Bitcoin is viewed as a safe investment tool and a safe haven. Bitcoin shares the role of gold as a safe haven. The latest statistics show that confidence in Bitcoin is increasing.
The global trade war allows Bitcoin to be increasingly adopted and recognized as an alternative safe haven alongside gold, thanks to the liquidity and accessibility advantages it offers when compared to precious metals.
Bitcoin and the Role of a Safe Haven
After US President Donald Trump announced mutual import duties on April 2, financial markets experienced a great shock and fluctuation. Subsequently, many countries, especially China, decided to increase their import duty rates against the US. This situation caused great losses in world stock markets.
While gold continues to be a dominant shelter for investors in times of geopolitical tension, analysts confirm that Bitcoin is seen as an alternative shelter for investors, just like Gold, in times of tension. The digital structure of BTC on the Blockchain network and its ability to be traded 24/7 are superior to Gold.
BTC, which is limited to 21 million units, is an easily accessible investment vehicle. Its deflationary feature is quite interesting. However, although BTC is a developing and accepted investment vehicle, it is still quite volatile, which is not seen as a good option, especially for investors with high fears.
The fragility of the world's economic system has been demonstrated again in the trade wars of recent weeks. The concern that the world financial markets will enter a recession has further increased the interest in assets such as Bitcoin and brought BTC to the role of a safe haven.
Conclusion
Developments in world financial markets and increasing uncertainty in global trade are accelerating investors' search for safe havens. Investor pressure on Gold and Bitcoin seems to increase over time. Bitcoin and the increase in investor adoption rates are the biggest examples of this.
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