Is bitcoin a safe haven?

No matter how high the price of Bitcoin or how popular it gets day by day, one question remains. Can Bitcoin really be a safe haven? Such questions are not uncommon with many countries planning to adopt Bitcoin as a reserve asset. But as far as I can tell, Bitcoin price is not stable but it is unstable even though the price of Bitcoin is so high right now.

So the question of whether Bitcoin is a safe haven is quite clearly Bitcoin cannot be a safe haven. Although we all know that cryptos are famous for their volatility and this volatility can never be a safe haven or they cannot become a safe haven very soon, but it will take a long time. Especially there are many users or citizens of some countries who use Bitcoin to escape the grave of unstable currency of their country but it is very risky. For example, an emerging nation is using Bitcoin as a safe haven for residents in their hinterland to escape from a volatile economy. But actually consider this. Their use of Bitcoin as a safe haven exposes them to additional risk.

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Bitcoin is probably the best investment right now in the medium or long term. However, many believe that the price of Bitcoin can go up to millions of dollars in the future. But it should be seen as an investment. Especially because of the volatility in Bitcoin's price, I think it's short-term volatility doesn't make it a good safe haven for those looking for it as a safe haven. Many consider Bitcoin as a safe haven or compare Bitcoin investments to rare metals such as gold. But as far as I'm concerned comparing Bitcoin with gold may be a complete misconception.

Simply put if you are a budding investor and you put your hard earned money into Bitcoin it is not unusual to see the price of Bitcoin drop a lot then you will be at a huge loss. If your investment is long term then it is different but if you need money suddenly and have to sell it to raise your money then Bitcoin investment will not be profitable for you but will be a cause of loss.

For example, consider that the price of Bitcoin is currently around $96,000 and is expected to cross $180,000 by the end of this year. But then it is not unusual for Bitcoin price to come close to $30-40000. But when it moves to that position, it will cause many losses. If you need money, it can be worse than state currency.

So in this case it would be better to use stable currency. But many consider Bitcoin as a safe haven and therefore decide to invest in Bitcoin. But you have to consider the reality especially for the citizens of the country who invest in Bitcoin for the financial stability of the country, I think for them the financial instability of the country is much better than Bitcoin.