“It’s become apparent this year over the past six months that Bitcoin is on a tear and has been increasing in value steadily against many sovereign fiat currencies. So with all the volatility happening within the economy investors worldwide who are searching for an instrument that retains its value have probably heard about the cryptocurrency. Typically certain currencies have been called a safe haven over the years most notably the Yen, and the U.S. dollar. However, those times have changed over the past couple of years as both fiat currencies have been floundering and more so during the down markets these past few months.
Then investors also look to the top dogs of the performing safe haven assets such as gold and U.S. Treasury bonds but those markets have been quite slow up until recently with precious metals showing some gains just this month alone. But before the attention the Brexit referendum there was the Grexit everyone talked about, and Greece had faltered on attempts to pay the IMF. Gold had done nothing at this time to provide any safe haven and Bitcoin seemed to be the coming asset of the new century among investors. Typically gold is considered a safe haven when markets look like a nightmare and bonds backed by full faith credit also do well during these times. Yet in 2016 this is not the case. The cryptocurrency Bitcoin has taken the definition of assets, hedges and safe havens for a ride.”