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Renowned investor Questions the Safe Haven Status of Bitcoin

Renowned investor Questions the Safe Haven Status of Bitcoin

Traditionally, Bitcoin has been touted as a safe haven. During times of political or financial uncertainty, huge waves of investors tend to hit the crypto market and buy Bitcoin. Many investors usually feel that Bitcoin is much safer compared to FIAT currencies. This fact has been proven over time. Since BTC was created, it has appreciated while FIAT currencies have continued to depreciate.

The main problem with Bitcoin is that it is not a sure investment. In fact, no cryptocurrency is a sure investment. While Bitcoin might look quite safe right now, there is no assurance that it will work great in the future. However, with due diligence, it is an investment that can be quite fruitful.

A Famous Investor Agrees

During a recent CNBC interview, Kevin O’Leary, a famous investor, discussed the idea of Bitcoin not being a safe haven. O’Leary said that he would never invest more than 5 percent in a single stock and never more than 20% in a single sector. He told a fellow panelist at the discussion that investing 50% in one sector was not a good idea.

From the interview, it is quite clear that O’Leary does not have much faith in Bitcoin as a safe haven. Not everyone will agree with the safe-haven nature of Bitcoin. However, it has proven quite useful to many around the world, who would wish to dump their local currency as it spirals out of control due to inflation. Despite his unsupportive sentiments, there is a lesson to be deduced.

It is important to keep in mind that Bitcoin is inherently unstable. As a result, you should always be careful when using it as a safe haven. For one, it is still prone to regulatory pressure and other types of risk. For instance, if Bitcoin mining was banned by most nations, it might make the network quite unsafe. Additionally, doing a lot of research is always important. For instance, you need to learn how to store your Bitcoin. With enough research and thought, you can find out for yourself if Bitcoin is or is not a safe haven.

Should we listen to O’ Leary?

The famous investor knows that Bitcoin is a solution to rising inflation, he just doesn’t want the average person to know that. It gives him less time to accumulate more cryptocurrency if he has to compete with every investor who copies his advice!

Years ago Kevin O’ Leary admitted to purchasing Bitcoin, this has been kept quiet recently as he tries to act as if he doesn’t think Bitcoin is a good investment. He has even invested $100k into a crypto startup called “Bundil” which allows you to convert your spare change into cryptocurrency.

The lesson to take from this is to do as smart money does, rather then what it says!

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