Bitcoin.org co-founder doesn’t believe BTC to be a safe-haven asset in the face of Coronavirus
- The co-founder of Bitcoin.org, who goes by the CØ₿RA moniker, has spoken against Bitcoin’s status as a safe-haven asset.
- He expects a fall in BTC demand due to the economic crisis caused by the current pandemic.
The co-founder of Bitcoin.org, who goes by the CØ₿RA moniker, has spoken against Bitcoin’s status as a safe-haven asset. He recently questioned whether crypto-assets, including Bitcoin, can be considered a safe haven from the volatility of traditional markets. In a recent tweet, CØ₿RA warned against the use of Bitcoin to hedge against the traditional financial system.
The biggest investment mistake you can make is to assume Bitcoin and cryptocurrencies, in general, are a hedge against the traditional finance system and to naively believe Bitcoin will negate your losses from recession and stock market collapse. -@CobraBitcoin
CØ₿RA further explained that people consider Bitcoin to be a risky investment and are more likely to buy BTC when they have surplus cash. The co-founder expects a fall in demand for Bitcoin due to the economic meltdown and massive surge in unemployment caused by Coronavirus.
People buy Bitcoin when they have extra cash to invest in something risky, and that's during good times, because when times are good you can afford to gamble and dream. Nobody's going to buy BTC when they've lost their job, can't afford their house, and are struggling to get by. -@CobraBitcoin
CØ₿RA said that the crypto market is driven by greed-fueled investment and “newbies.”
The entire cryptocurrency market is sustained almost entirely by newbies jumping in blind and buying coins just because of greedy expectations of future value, value based on perception not any utility, they will dump first when shit gets real. -@BitcoinCobra
The Bitcoin.org co-founder believes BTC’s price will drop to $1000 - $2000 in the event of an economic depression as most investors would sell their crypto-assets to manage essential costs.
If we enter into a deep depression, I wouldn't be surprised if Bitcoin was trading somewhere $1000-$2000, only the most stubborn hodlers will remain, the rest will have dumped a lot, by necessity because they will need the money for rent, food, keeping their business afloat, etc. -@BitcoinCobra
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
