Bitcoin's status as a safe haven asset is up for debate. Bell noted that Bitcoin is essentially a highly volatile, speculative, and tradable asset, although its scarcity, portability, and decentralization give it hope as a potential store of value. Investors view Bitcoin as a strategy to combat currency devaluation rather than a safe haven from short-term market turmoil. Its supply is capped at 21 million, a certainty that makes Bitcoin particularly unique in the face of policy uncertainty.
Long-term holders value Bitcoin's value preservation in response to risks such as national debt accumulation and central bank policy changes, and they focus on its relative value increase rather than short-term price fluctuations. Arthur Breitman emphasized that Bitcoin's resistance to confiscation makes it an ideal store of value in specific situations, such as when a bank account is frozen.
Dan McArdle's insights further enrich the discussion of Bitcoin's value, arguing that Bitcoin's performance is closely related to different types of crises, noting that it may be sold off in a liquidity crisis and may rise in a sovereign debt or fiat currency confidence crisis. Monday's market dynamics confirmed its performance in the liquidity crisis. In contrast, traditional safe-haven assets such as gold fell by about 1% that day, highlighting the difference between Bitcoin and traditional safe-haven assets.
