The situation in Greece and the collapse of the Chinese stock market weren’t related, but in Bitcoin terms they really were two sides of the same (virtual) coin. That day marked the high in the Chinese stock market; the day the collapse began. As fears grew that the EU was about to fall apart, and that Chinese stocks were in a full meltdown, however, gold continued its recent decline. Has Bitcoin Replaced Gold As The New Safe Haven? Bitcoin was increasing. Logically, all of that suggests that Bitcoin has replaced gold as the safe haven of choice in times of trouble. An 8 year chart for gold shows that that was the response to the events of 2008/9 – a bull run on gold that took it all the way to around $1200. In the past, even the recent past, the response of those who saw the exposed weakness in conventional market instruments and were concerned would have been to buy gold.
Sometimes, though, even if evidence is scant, the logical case for causation can be strong enough to be noteworthy. One of the first things that those smart kids learned when it came to attacking an opponent’s case was to, where appropriate, point out that correlation does not necessarily equal causation. It seems to me that while the case for Bitcoin as a safe haven isn’t proven, there is enough evidence to make owning some as insurance against the inevitability of another recession a smart move. If Bitcoin had been at the current level of maturity when the financial crisis came, how would it have reacted, and how will it react when the next global recession comes? Of course, that timescale also coincides to some extent with the Greek crisis once again rearing its ugly head. Get started with our smart insider tips. Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter. Get fresh crypto insights with Ledger Academy. 1. Get a Ledger hardware wallet. The perfect entry-level crypto wallet to securely manage all your crypto and NFTs.
Bitcoin, Ethereum, XRP, Cardano and Polygon. You can unsubscribe at any time using the link included in the newsletter. Announcements can be found in our blog. Just because two things happen at the same time doesn’t mean they are related. On the same day another, seemingly unrelated market, BTC/USD began to climb off of the lows where it had been languishing, at around $230. Day to day fund holdings. That and the fact that Greeks had no access to their money at the time suggested that there was very little direct buying by Greeks or other Europeans. There is simply not enough evidence to draw a broad conclusion such as that, but it does raise a couple of interesting questions. That was the most common reason given at the time for Bitcoin’s rise but, as I said at the time, there was no evidence of any increase in the volume of BTC/EUR traded.