{"id":392250,"date":"2019-08-05T20:00:04","date_gmt":"2019-08-05T20:00:04","guid":{"rendered":"https:\/\/wncen.com\/?p=392250"},"modified":"2019-08-28T15:58:21","modified_gmt":"2019-08-28T15:58:21","slug":"bitcoin-store-of-value-narrative-turning-toward-safe-haven-asset","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-store-of-value-narrative-turning-toward-safe-haven-asset\/","title":{"rendered":"Bitcoin Store of Value Narrative Turning Toward Safe Haven Asset"},"content":{"rendered":"

Bitcoin\u2019s narrative is ever-changing. It started out with more of a focus on its use as a payment currency, or \u201cpeer-to-peer electronic cash system,\u201d then the focus shifted to \u201cstore of value\u201d once more investors began thinking long-term with cryptocurrency.<\/span><\/p>\n

The latest twist to the Bitcoin<\/a> narrative has turned it toward a safe haven asset in the face of growing economic turmoil, and even CEO of Circle Jeremy Allaire agrees that Bitcoin is a \u201cvery attractive asset in that context.\u201d<\/span><\/p>\n

Global Economic Turmoil Changing the Narrative Around Crypto<\/span><\/h2>\n
Bitcoin started out itself life as a \u201c peer-to-peer electronic cash system<\/a>,\u201d or in other words, a way to transfer value across the internet without the need for a third-party to keep the network safe, or secure. <\/span><\/p>\n
Later, the narrative surrounding the first-ever cryptocurrency turned to the \u201cstore of value\u201d due to the \u201cHODL\u201d effect, or a phenomenon where a large number of investors holding BTC for the long-term, store value in the asset due to the belief that this value will grow in the future.<\/span><\/p>\n
The two narratives combined \u2013 the decentralized or \u201cnon-sovereign\u201d transactional and transferability aspects, along with the store of value narrative \u2013 have resulted in a new narrative forming: Bitcoin as a safe haven asset.<\/span><\/p>\n
Related Reading | Prominent Investor: Mainstream Finance Is Now Considering Bitcoin As a Safe Haven Asset<\/a><\/strong><\/em><\/p>\n
Much like Bitcoin as designed to be a system for transferring value, and a way to store value, additional unique attributes were hard-coded into its network to solve other problems Bitcoin\u2019s creator Satoshi Nakamoto saw in current fiat-based monetary systems.<\/span><\/p>\n
The biggest issue Satoshi set out to solve was the ongoing inflation in fiat currencies at the hands of governments being irresponsible with decisions governing other people\u2019s money. Bitcoin is hard-capped at 21 million BTC<\/a> and features a unique system called a \u201chalving\u201d that further reduces the supply of bitcoins trickling back into the market. This ensures as Bitcoin\u2019s network grows, so does its value, and more BTC can never be issued.<\/span><\/p>\n
All of this combined has also made Bitcoin a safe haven asset, even despite its notorious volatility and ability to wipe out as much as 90% of its gains from a previous rally.\u00a0 <\/span>Through it all, Bitcoin has proven it cannot be stopped, cannot be controlled, and given the fact, only 3 or 4 months buying BTC has ever led to long-term losses, its store of value narrative has been repeatedly been proven.<\/span><\/p>\n

Circle CEO Believes in Bitcoin as a Safe Haven Asset<\/span><\/h2>\n
As CEO of the Goldman Sachs-backed Circle Jeremy Allaire points out, \u201chumanity has now created a non-sovereign, highly secure mechanism to store value that can exist anywhere that the internet exists.\u201d<\/span><\/p>\n
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"Humanity has now created a non sovereign, highly secure mechanism to store value that can exist anywhere that the internet exists," says @jerallaire<\/a> on #btc<\/a> surge amid #TradeWar<\/a> pic.twitter.com\/Lhguui8arb<\/a><\/p>\n
— Squawk Box (@SquawkCNBC) August 5, 2019<\/a><\/p><\/blockquote>\n