Written by: George Prior
Bitcoin is set to surge this week, securing its safe-haven status as U.S. –China tensions escalate, affirms the CEO of one of the world’s largest independent financial advisory and fintech organizations.
The comments from Nigel Green, the chief executive and founder of the $12bn finance giant deVere Group comes as the price of Bitcoin rallied past $10,000 on Monday.
Mr Green says: “Bitcoin, the largest and most influential cryptocurrency, shot past the key $10,000 resistance marker – all eyes are now on the critical $10,500 level.
“Established Bitcoin bulls and new crypto investors could make this happen this week as tensions heightened between the U.S. and China, the world’s two biggest economies.
“Investors are flocking to safe-haven assets, in particular those not tied to any specific country, such as Bitcoin and gold, the latter of which hit record price highs on Monday.”
The gains come as Washington last week closed China’s consulate in Houston, and in response prompted Beijing to shut down the U.S. consulate in Chengdu.
“Bitcoin is currently realising its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin - which shares its key characteristics of being a store of value and scarcity – could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven,” says Mr Green.
He continues: “Geopolitical issues, such as the U.S.-China spat, will prompt many savvy investors to increase exposure to decentralized, non-sovereign, secure digital currencies, including Bitcoin, to shield them from the turbulence taking place in traditional markets.”
The deVere CEO concludes: “Cryptocurrencies are widely regarded as the future of money – yet what is less reported upon is that Bitcoin and its peers are increasingly regarded a safe haven in the present.”