Bitcoin (BTC) has proven that it is not a safe haven asset, and the gold worm Peter Schiff has said that the largest cryptocurrency fell by 7% in daily trading.
In a tweet published on August 28th, Schiff, who has increasingly been called a bitcoin opponent, claimed that BTC/US dollar depreciated again below $10,000 on Thursday as a theoretical payment for hedging statutory volatility.
Schiff : Bitcoin failed to pass the risk test’
“Bitcoin failed to pass the safe haven test again. On Friday, as trade tensions escalated, global stock markets plummeted, and investors sought a safe haven for safe havens. The yen, Swiss francs, and especially gold were all higher. However, Bitcoin’s Falling more than stocks!” he wrote.
Schiff cites a popular theory of bitcoin investment habits that have surfaced in the past two months.
In the context of the US-China trade war, the tensions in Venezuela and the riots in Hong Kong, commentators claim that Bitcoin offers the option of retaining wealth for people in the affected areas.
As Cointelegraph pointed out, the overall network volatility of Bitcoin last week hit a two-month low.
However, now, the new move has spurred critics like Shif, and he continues:
“Since last Thursday, Bitcoin has lost more than any major stock market index, while gold and silver prices have risen.”
However, his argument was lost to Bitcoin supporters. In response, the Twitter account called Parabolic Trav refutes Schiff in the intrinsic value of Bitcoin.
“Why is Bitcoin a safe haven? Bonds are a safe haven for the current paradigm. Gold is not a safe haven,” he wrote.
US Treasury Secretary Steven Mnuchin revealed that the government is considering 50 or 100 years of ultra long-term bonds.
In the event of a possible depreciation of Bitcoin, the issuance of such bonds would reduce Washington’s borrowing costs and limit taxpayers’ exposure to the US’s nearly trillion-dollar annual budget deficit.
“Bitcoin is very simple, and as time goes on, ‘the number goes up’,” Traf continued to try to shrink Schiff. He concluded:
“If you try to incorporate it into the traditional financial analysis box, then you will feel that you are Pete!”
source: cointelegraph . com