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September 26, 2020
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Cryptocurrencies are not a safe haven, says Korean professor Blocksats

A well-known professor at Hongik University in South Korea does not believe that cryptocurrencies are a safe haven during a crisis and pandemic. It also explains where the recent price jumps came from.

Cryptocurrencies and a safe haven

On June 11, an expert from South Korea stated in local media that cryptocurrencies are “Bad choice” investment during the COVID-19 pandemic and the economic crisis.

According The Scoop Hong Ki-hoon professor at Hongik University said that crypto assets such as Bitcoin (BTC) should not be considered “at all”safe assets “ and compared to gold, dollars and even US Treasury bonds. However, he does not deny that the volatility in financial markets is accumulating more money on the cryptocurrency market.

“To be a safe haven, two conditions must be met. First, the volatility of the asset value must be low, and secondly, when the volatility is expected [większości innych] markets will increase in value [tego aktywa] should increase. Therefore, cryptocurrencies do not meet the conditions [bycia safe haven]”

– he says.

Why is BTC growing?

The professor also explains why BTC was gaining on the chart during a pandemic. He believes that then there was simply a specific climate for investing in more volatile assets.

The article also expressed concerns about “Market manipulation.” It was found that the cryptocurrency environment is not sufficiently regulated in the country. It is believed that the current greater popularity of the market does not reduce the concerns of investors who hesitate whether it is worth buying cryptocurrencies.

On the other hand, an anonymous investment expert quoted by The Scoop revealed that:

“Individual investors are often unable to properly manage the risk associated with shares, but it is virtually impossible to assess the risk factors for cryptocurrencies. You must understand this before you fully invest. “

Current course You can always check Bitcoin and other cryptocurrencies in the tabs: course Bitcoin and cryptocurrency exchange rate on Bitcoin.pl. A place where you can buy Bitcoin and other kryptowaluty, include cryptocurrency exchange BitBay.net. If you don’t have a BitBay account yet, this article will show you how to create one efficiently: LINK.

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