The trade war between the USA and China contributes to the rise of bitcoin as a safe haven

In recent months, the Bitcoin rate is constantly growing and, according to the founder of the Digital Currency Group Barry Cilbert, one of the reasons for this was the trade war between the United States and China.

"It is definitely interesting that the price of Bitcoin began to rise at the very moment of the commencement of talks about a trade war ," said Silbert in an interview with Fortune.

The head of Grayscale also stressed that Bitcoin is a non-correlation asset and has always performed better than traditional safe-haven assets like gold. In moments of instability, political or economic, there has always been a rise in the rate of the first cryptocurrency.

Another argument Barry Silbert in favor of the growth of Bitcoin was the interest of institutional investors and hedge funds. He noted that the old investors, who preferred gold and securities, are gradually giving way to a new generation, for which Bitcoin is becoming a real alternative.

“Bitcoin has a real use. It creates a new financial system, removes intermediaries, disagreements, reduces cost, breaks down barriers. And if you think about the real benefits of Bitcoin in terms of payments – it can provide the possibility of payments and transfers for people without access to the banking system and this is a real application. Bitcoin has the potential to create new economic opportunities around the world. And gold, the more expensive, the less useful it becomes , ”said the founder of the Digital Currency Group.

Silbert also noted the cyclical nature of Bitcoin. In his opinion, ups and downs of 60-80% are signs of growing up and becoming an asset. And most importantly – this is a significant increase in Bitcoin infrastructure. These are platforms for institutional clients, custodial solutions such as Fidelity and Bakkt , as well as the increasing popularity of the first cryptocurrency.

Recall that Grayscale is one of the largest asset management companies, and the volume of cryptocurrencies managed by Grayscale Investments exceeded $ 1 billion. Interestingly, Barry Silbert himself, although he is a Bitcoin enthusiast, believes that most modern cryptoactive assets will disappear in the future.

Publication date 24.05.2019
Share this material on social networks and leave your opinion in the comments below.