Why Bitcoin matters

Alex, the Co-Founder of Zabo, discussed on our blog why Bitcoin is more important than ever in 2020.

Do you have Bitcoin or cryptocurrencies in your portfolio to diversify your assets classes?

The price of Bitcoin seems to perform inversely with equity markets. Be interesting if anyone shares this view, I’ve been wondering if Bitcoin is a possible hedge for equities? The volatility has decreased significantly in the past year which is also appealing.

Bond yields are poor, P2P lending is really struggling… there aren’t many obvious asset categories left to differentiate away from equity markets.

I’m not sure that I would agree that Bitcoin is inversely related to equities…I have attached a couple of charts below to help illustrate what I’ve seen. Both seem to dip in March and then rebound together

I do agree with the view that there are not many appealing asset categories at the moment though

Really interesting thanks.

It’s price has stabilised some what in the past month. I was hoping for a break out beyond $10k, but now thinking it might sink backwards.

I do follow Bitcoin at a distance, but I dont own any crytocurrency. I try not to purchase things that I dont fully understand, so I am steering clear at the moment.

The idea of bitcoin becoming a ‘safe-haven’ asset, like gold is interesting and something that I could see developing in the future

Yes, Bitcoin becoming a commodity type asset is an interesting hypothesis.

It’s been fascinating seeing how it’s developed over the past years and it would be great to get another asset class into the mix.

@iainnib, I’m not sure if you saw it, but you might find this interesting.
There seems to be a generational divide between Old + Gold Vs Youth + Crypto (bitcoin) according to JP Morgan. Bitcoint may become more relevant in the next decade - the New Gold (as suggested in your original link)