Spencer Bogart recommends not counting …

Spencer Bogart recommends not counting …

Spencer Bogart recommends not relying on bitcoin in case of serious economic crisis

Spencer Bogart, General Partner of Blockchain Capital, in a conversation with Bloomberg, shared his thoughts on the version that Bitcoin can play the role of a safe asset in the event of a collapse of global financial markets.

According to Bogart, bitcoin in a certain context can really become such an asset. “I think bitcoin will definitely be a safe asset in the long run. It follows the curve of perception, and in this way we can observe its development. Now he is at an intermediate stage, where it is necessary to assess the risks and their severity, – said the entrepreneur. – When the risk of money depreciation is at risk, things like bitcoin definitely seem very attractive. I think this is what has been a major driver of the recent rise in prices. “.

At the same time, the partner Blockchain Capital invites market participants to think about alternative scenarios for the development of the situation: “If we talk about a really serious crisis, collapse of liquidity, another global financial crisis, I think that bitcoin will face difficult times from a price perspective.”.

Safe assets are understood as assets in which investors tend to seek salvation during economic shocks. As a rule, they have a lower level of risk. Analysts at The Block previously noted that Bitcoin may not be the type of asset that investors will use to save their money in the scenario described. They came to this conclusion by comparing the volatility levels of bitcoin, US government bonds, gold and some other assets, where the average 30-day values ​​over the last 5 years were 12.4%, 0.5% and 2.5%, respectively..

Spencer Bogart recommends not counting ...

As an additional factor, they point out that bitcoin, traditionally viewed as a non-correlated asset, has become increasingly correlated with the yuan amid the trade war between China and the United States..

In July, Bogart attributed Bitcoin price fluctuations to “the natural behavior of any asset class with limited supply and volatile demand.”.

Spencer Bogart recommends not counting ...
Spencer Bogart recommends not counting ...

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