From the "non-predatory nature" of Bitcoin, we can see the safe-haven properties of crypto assets~

Eric SJ · 2023-06-03T08:51:16.000Z

Is #BTC still a safe haven asset? Maybe many investors have this question in their minds. In this article, I want to start this debate from two angles: Does Bitcoin or cryptocurrency have hedging properties? 01丨Asset value hedging? 💰 Many people's understanding of risk aversion is basically based on gold standard thinking, that is, during the period from the time of buying to the time of selling, whether a certain asset can hedge risks based on the index of the general environment compared with the same period last year. It sounds a bit convoluted, let’s go directly to the data chart~ The picture above is a period of time last year when I captured the S&P 500 index’s main decline. In these 10 months, the S&P index fell by more than 20%. If we look at the value of the asset gold standard, if To be associated with hedging, at least the S&P index must perform better year-on-year, such as only falling 10%, or rising against the trend. These are all assets that can be called safe havens in the past period.

#BTC Is it still a safe-haven asset? Perhaps many investors have this question in their minds. In this article, I would like to discuss this debate from two perspectives: Does Bitcoin or cryptocurrency have safe-haven properties?
01丨Asset value hedging? 💰Many people's understanding of risk aversion is basically based on the gold standard, that is, whether an asset can hedge risks in the process from buying to selling, compared with the overall environment index.
It sounds a bit confusing, so let’s go straight to the data chart~
The above picture is a screenshot of the S&P 500 index's main decline over a period of time last year. During these 10 months, the S&P index has fallen by more than 20%. If we look at it based on the value of the gold standard, if it is to be associated with safe haven assets, it must at least perform better than the S&P index year-on-year, for example, it has only fallen by 10%, or it has risen against the trend. These are assets that can be called safe haven assets during this period of time.
But how is Bitcoin performing?
The following figure shows the performance of Bitcoin in the same period of time. In the same period of time, #BTC  fell by a full 60%! It is much larger than the decline of the S&P index. So from the perspective of the gold standard value of assets, can Bitcoin still be said to have safe-haven properties in this case?
Obviously, this is untenable from this perspective, but this is something that many people probably know. In this article, I want to tell you from the perspective of the "predatory" nature of assets: Why Bitcoin and even encrypted assets can be used as a hedge
02丨The predatory nature of assets ⚔️This is a word I invented recently. I don’t know if there has been a similar word before. If so, it is purely coincidental.
What is "predatory"? What is "non-predatory"? In simple terms, it means whether personal assets can be forcibly plundered or frozen by external forces, resulting in loss of liquidity.
For me personally, high liquidity and security of funds are equivalent. If the money cannot be used, no matter how large the value is, it is just a string of numbers and cannot provide us with any service.
Because of the technical characteristics of blockchain, Bitcoin naturally possesses the characteristic of "non-predatory". In the blockchain world, "personal assets are sacred and inviolable" is truly regarded as the first principle.
Therefore, from the perspective of "asset non-predatory", Bitcoin and some other cryptocurrencies are worthy of being called "safe-haven assets"
I didn't realize this at first, because many people like to use the argument that its fixed total amount can fight inflation as an excuse to call it a "safe-haven asset", but this is actually a currency-based thinking. Most people in the industry do not have this kind of thinking, at least I don't. I still value cash flow more.
However, from the perspective of "assets cannot be looted", it is the result of frequent geopolitical conflicts at the macro level in recent years. Compared with gold, when geopolitical conflicts break out, the amount of gold that can be carried is limited due to the problem of carrying.
Other virtual assets such as futures, contracts and gold equivalents also have the risk of entry and exit restrictions. However, Bitcoin only requires you to remember the mnemonic phrase and can be traded worldwide (even without a centralized exchange).
Without considering the actual value of the gold standard of assets, the "safe-haven attribute" of Bitcoin and even some other encrypted assets can be said to be worthy of the name~
PS: Many people may say that they cannot ignore it. That may be because you do not understand what "keeping the green mountains will not worry about the lack of firewood" means. Similarly, you may not understand how important it is to leave some assets in a foreign land to make a living in the context of geopolitical struggles.