Over the past few months, Bitcoin (BTC) has been lauded by economists, investors, and commentators as an up-and-coming \u201csafe haven\u201d asset.<\/p>\n
You see, during a period of global turmoil, the cryptocurrency has managed to outpace effectively every other asset class in the books.<\/p>\n
As\u00a0reported by NewsBTC<\/a>, since the U.S. kicked off its latest trade war with its economic rival, China, Bitcoin has gained 105%. While this number means nothing on its own, the average asset class that Grayscale surveyed \u2014 stocks, bonds, and foreign currencies included \u2014 actually lost 0.5% in the same time frame.<\/p>\n But, some are openly questioning the narrative, including a prominent proponent of gold, Peter Schiff.<\/p>\n Last Friday, the trade war between the U.S. and China was escalated yet again. As reported by this outlet previously<\/a>, American President Donald Trump unveiled a new tariff threat against China, saying that he may impose an extra 5% tax on $550 billion worth of Chinese tariffs. He also dubbed Chairman Xi a potential “enemy” to the United States.<\/p>\n The market immediately reacted. Stocks and the Chinese Yuan plummeted, seeing a red day, while traditional safe havens \u2014 the Japanese Yen, Swiss Franc, and gold<\/a> \u2014 moved higher in tandem. What’s interesting is that Bitcoin jumped, gaining around 3% in the immediate wake of Trump’s tweetstorm.<\/p>\n However, not 24 hours after Bitcoin spiked, it plummeted, shedding $500 in a matter of a few hours. According to Peter Schiff, a prominent libertarian-leaning economist and investor, this is a clear sign that BTC “failed the safe haven test”.<\/p>\n Bitcoin has again failed the safe haven test. On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe havens. The Japanese yen, Swiss franc, and especially gold all moved higher. Yet Bitcoin plunged by more than stocks!<\/p>\n — Peter Schiff (@PeterSchiff) August 28, 2019<\/a><\/p><\/blockquote>\nBitcoin is a “Failed” Safe Haven?<\/strong><\/h2>\n
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