Bitcoin is the new safe-haven asset: Analyst

While gold has performed well in recent months, rising 20 percent year to date, Burniske suggested investors should also consider diversifying into bitcoin.

“When you look at the global markets, there’s lots of fear, uncertainty and doubts. You’ve got people worrying about the equity markets [and] you’ve got people fleeing into bonds,” he said. “While gold has had a bit of a run in 2016, over the last five year period it’s been a terrible performing asset.”

“So you’ve got people starting to wonder where there are safe havens to store their assets. I think you have lot of people saying ‘Hey we want to diversify a little bit’ making allocations to bitcoin’.”

Some disagree that bitcoin should be considered a safe-haven asset. Vijay Michalik, research analyst at consultancy Frost Sullivan, pointed out that bitcoin is still very volatile.

“Bitcoin is still such a new innovation that the economics of its value aren’t fully understood, and the price looks likely to remain moderately volatile in the medium term,” he told CNBC in an email.

“Volatility and the long-term unknowns involved in bitcoin’s development stop

Read more ... source: TheBitcoinNews