Bitcoin is a good safe haven for economic crises

Prasos Ltd, the company behind Coinmotion and Denarium, was represented this week at an investment-themed exhibition organized in Helsinki, Finland. During the event CEO Heidi Hurskainen held a presentation about Bitcoin and its ability to function as a safe haven during economically uncertain times.

According to Hurskainen Bitcoin has a notable potential to protect people’s funds from economic problems. Bitcoin does not heavily correlate with other investment targets, and has at times even reversely correlated with them. When for instance stock market prices have crashed, bitcoin’s price has risen.

Bitcoin is also immune to inflation driven by states and central banks. There is a maximum supply of 21 million bitcoins, which can never be exceeded. In reality the supply is even smaller, since a significant portion of bitcoins has already disappeared behind lost accounts.

Bitcoin is also immune to censorship and political interference. Bitcoin cannot be confiscated and its transfers cannot be stopped by outside parties. This further enhances its position as a safe haven.

While Bitcoin has not yet faced a global economic crisis, it has shown its strength in local ones. A good example is Venezuela, whose failed policies have left the country suffering from economic chaos and hyperinflation. As a result Venezuelans have in increasing amounts started transferring their property to bitcoin, since the currency has an excellent history of value preservation and growth.

Bitcoin is a good safe haven for economic crises
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