DataTrek Market Researcher: Bitcoin Can Be A Turmoil Indicator in Geopolitical Affairs
New studies about Bitcoin are uncovering some very interesting truths behind the most famous cryptocurrency of the world. For instance, a new study made by DataTrek Research appoints that Bitcoin can be used as a way to determine geopolitical turmoil.
Nicholas Colas, the co-founder of the company, has recently spoken to CNBC and affirmed that Bitcoin could be used in order to find indications of political unrest. He used the local price rise of the token in Hong Kong as an example of that.
According to him, the price of the asset could be used to predict that Hong Kong would suffer a capital flight during the political tensions which are happening there right now.
He also affirmed that Bitcoin can definitely be seen as a safe haven asset right now. Crypto investors affirmed this for a long time, but this is becoming each time more undeniable right now. According to Colas, BTC was one of the few stable assets during the turmoil because it was not linked to the country in any way.
Peter Tchir, a Forbes contributor, was also responsible for affirming recently that Bitcoin was a major indicator of financial turmoil and political crisis.
However, it should be noted that BTC is still a very volatile asset and that betting everything on it might not be the most secure idea during troubled times. There are no guarantees that the prices will not go down again before they go up.
Because of this, investing everything in BTC is a much more sensible decision in complete chaotic situations such as Venezuela and not so much in situations in which there is a small risk. In this case, a more diversified portfolio can be considered more secure.