Grayscale Investments Shares Case Study on How BTC is a Hedge Against Financial Instability

Recently, Biran Belski — the chief investment strategist for BMO — was quoted as saying that even though Bitcoin has been doing exceedingly well over the past 6-8monhts, it was still too early to call the digital asset a “financial safe haven”.

  • The study claims that BTC is an excellent long-term SOV.
  • It also mentions that irrespective of the global financial situation, BTC has the potential to exhibit strong financial signals at any given time.

Digital asset investment firm Grayscale recently released a case study regarding BTCs potential for being used as a hedge against global financial instability (particularly the trade tensions currently going on between the United States and China).

In relation to the matter, the firm also released a blog post yesterday in which the company’s research team pointed out that BTC’s store of value (SOV) potential is currently at its all time high. Not only that, the flagship digital currency is “uniquely suited” to exhibit strong financial performance both during normal economic cycles as well as times of low liquidity.

In the report, the folks over at Grayscale advice investors to buy BTC since the asset is beneficial to possess in any long-term investment portfolio.

As pointed out by a number of other crypto analysts and experts, Bitcoin’s value has continued to surge despite the ongoing U.S.- China trade war. From a technical aspect, we can see that up until the 7th of August, Bitcoin has been able to generate a cumulative return of 104.8% as opposed to an average of -0.5% for the twenty other digital assets and currencies (in the top 25) over the same time frame.

The study also clearly highlights that despite the U.S. – China trade war — two economies that compose of nearly 40% of the world’s yearly financial output — Bitcoin has continued to perform exceedingly well.

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Shiraz J
Shiraz is a multi-year cryptocurrency analyst and blockchain journalist residing in Melbourne, Australia. When he is not writing about the bitcoin ecosystem, he enjoys the art of meditation, playing the blues and traveling the world.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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