Attack On Aramco A Test On Bitcoin’s Safe Haven Status

cryptowarrior88 (59)in #cryptocurrency • 5 years ago (edited)

Many traditional safe-haven assets like Gold responded with gains as the prospect of conflict in the Middle East increased when Yemeni Houthi rebels conducted drone attacks on Saudi Arabian Oil infrastructure.

Crude oil prices increased by as much as 10% after the said attacks which the U.S. suspects to have been backed by the government of Iran as part to disrupt economies of U.S. friendly nations and could potentially cause the biggest oil supply shortage in history.

The seeming correlations of macro socio-political events and the price action of Bitcoin have earned the emerging asset class safe-haven status dubbing it as digital gold or Gold 2.0, earning it a position among more traditional safe-haven assets such as precious metals and government bonds.

Chief executive of independent financial advisory service DeVere Group, Nigel Green, is widely credited for bringing in the bitcoin -as-a-haven-asset movement.

Green believes that such events could drive up the price of Bitcoin to as much as $15,000 and can potentially dethrone gold in the future as the world becomes increasingly digitized.