Bitcoin Continues to Rise on Safe Haven BuyingRyan Tucker
With the Chinese coronavirus remaining at the forefront of many people’s minds, prices of safe haven assets continue to shoot up. And while stocks remain elevated as some investors have reduced their fear of a pandemic, cryptocurrencies such as Bitcoin have gone on a tear.
At the time of writing, the Bitcoin price was up 44% on the year, a phenomenal rate of growth. That’s half of last year’s growth, and we’re only halfway through February. Given the likely economic slowdown in China due to the coronavirus and the prospect that will weigh on worldwide economic growth, it’s highly likely that Bitcoin price growth will only continue to increase throughout the year.
There has been much speculation with regard to Bitcoin and cryptocurrencies that they wouldn’t act as safe havens like gold, silver, and precious metals have over the centuries. But it seems that speculation was likely wrong, as Bitcoin has reacted just as one would expect a safe haven to. And as worldwide economic conditions continue to deteriorate, expect the Bitcoin price to continue to rise.
Cryptocurrencies now offer investors the ability to keep their assets safe against global pandemics, financial crises, and economic turmoil. The potential for long-term price appreciation was already there, and now investors know that cryptocurrencies offer the ability to act as safe havens in addition.
Those who have already invested in Bitcoin or other cryptocurrencies are undoubtedly happy at the decisions they’ve made, as they’ve likely made some pretty great gains. Bitcoin has nearly tripled in price since the beginning of 2019, performance that stocks, bonds, and even traditional safe havens like precious metals just can’t beat.
It’s not too late to get in on cryptocurrencies, as there is still plenty of room for them to grow. Three, four, or five years from now we may be looking back at sky-high cryptocurrency prices and wishing that we had bought more.