In June, Chris Burniske, a blockchain analyst and products lead at investment manager ARK Invest, told CNBC he considered bitcoin to be a safe-haven asset. Despite the volatility and the cybertheft, he still stands by this view.
“The way in which it’s a safe-haven asset is that it’s so differentiated from the other assets. It doesn’t move in tandem with them,” he told CNBC in a phone interview on August 16th.
“Bitcoin provides a good option for a small percentage of someone’s portfolio to park their money in a place that’s completely uncorrelated to the rest of the capital market.”
Part of the problem, according to Burniske, is that the Bitfinex hack, in which nearly 120,000 bitcoins worth around $70 million were stolen following a security breach, has tarred bitcoin’s image.
“Bitcoin is only a safe-haven asset so far as it is stored and secured properly. A lot of interest has come to the space, and not all positive interest, since the Bitfinex hack which is definitely unfortunate,” he said.
“Bitfinex’s security protocols were not sufficient to keep the hacker out, but nonetheless bitcoin and bitcoin-blockchain remain a secure