The case for cryptocurrency as a safe haven
These days, you have the option of putting your money into something called crypto, which can be as safe as gold, once considered the safest store of value in times of unpredictability. While both crypto and gold offer some degree of protection for your savings in times of financial uncertainty, the former has certain distinct advantages.
While both gold and digital currency provide some level of protection for your savings in times of economic uncertainty, crypto has certain distinct advantages.
The case for crypto as a safe asset
availability
Availability is the primary benefit of cryptocurrency as a safe haven. Unlike gold, which requires physical ownership and custody, cryptocurrencies can be stored and traded online with relative ease. This feature makes it easier for individuals to invest in cryptocurrency as a safe haven, regardless of location or investment amount.
Transparency
Gold has always been considered a hedge against the risk of economic upheaval. However, cryptocurrencies are also becoming increasingly popular as a risk-free investment choice. When the economy is volatile, holding either gold or cryptocurrency can be a good hedge. However, there are compelling reasons why storing cryptocurrency is preferable to gold.
Image: CoinCentral
Decentralization
Crypto is less exposed to market volatility and government regulations due to its decentralized nature. In contrast, market forces and government interference can make gold less stable as a safe haven. During the COVID-19 pandemic, for example, many countries implemented restrictions on the gold market, resulting in a shortage of tangible gold and a rise in prices.
Volatility
Volatility is another characteristic that makes cryptocurrency a superior safe haven compared to gold. Some cryptocurrencies are extremely volatile, while others are relatively predictable. This means that consumers can choose the crypto asset that best suits their risk tolerance. On the other hand, the price of gold is subject to fluctuations, which can make it challenging for investors to make decisions based on correct information.
Crypto total market cap sheds a few digits and currently at $1.23 trillion on the weekend chart at TradingView.com
Potential for expansion
The potential for expansion is another advantage that makes cryptocurrencies a superior safe haven to gold. The precious metal has been a safe haven for many years, but it has limited growth potential.
Image: FXVNPRo
In contrast, cryptocurrencies are still in their infancy and have a lot of room for exponential development. Therefore, investing in cryptocurrency as a safe haven can offer both security and development potential.
Conclusion
To sum it all up, while gold has historically been considered a safe haven alternative, cryptocurrency is far superior. People looking for a stable investment option are increasingly attracted to cryptocurrencies due to their many attractive features, including their availability, transparency, decentralization and high growth potential. Cryptocurrencies are a safe investment that is expected to grow in popularity as technology advances.
– Featured image from CoinNewsSpan
