When times get turbulent in the economy most people turn to invest in things that they know will bring them safety. They cling to these safe investments like a safety blanket to get them through. It is not so much about the growth of the investment at that point in time as it is about maintaining the capital that they already have. The stock market is currently at all-time highs, but that doesn’t mean that people aren’t still curious about what great safety investments are out there.
Could Bitcoin Be A Safe Investment?
There is a chance that the markets are not going to remain as high flying as they are today. Considering the pressure from tariffs being applied to China, the political uncertainty that exists in the United States and elsewhere, and so much more there is a lot to think about in terms of just how safe the stock market really is right now.
Getting ahead of a market collapse by investing in safe investments is the best way to go. Could this leave the door open for Bitcoin to be a place to park some money? At this moment it is being to look like a possibility.
The Decline Of Bitcoin
Bitcoin took an incredible tumble from its all-time highs of around $20,000 per coin in December of 2017. It feel to below half that value in a tremendous collapse. This gave way to the idea that Bitcoin was not a safe investment at all. Those who had been howling about how overbought Bitcoin was felt vindicated. They watched as Bitcoin cheerleaders were proven to be incredibly wrong in their assumptions about the currency.
That spectacular collapse may have left some to think that Bitcoin could not possibly be a safe investment. It is fair to consider avoiding Bitcoin with your money after what happened, but you should perhaps reconsider.
How Bitcoin Could Provide Safety When Other Investments Don’t
Investors used to rush into gold and other precious metals when things got a little sticky in the stock market. It was the safe harbor of the past. Unfortunately, that is just not something that works so well anymore. We do not live in a world that deals as much in concrete materials and currencies. We live in an electronic world that involves a lot of us passing money back and forth through electronic means. That is why Bitcoin is so appealing to begin with.
Few can doubt the idea that Bitcoin has a bright future ahead of it. It is also nice that it is not necessarily directly tied to the performance of the stock market. It does not have to move up or down based on how the overall market is doing. It is unbound from such things, and that keeps the door open to the potential that this is a great safe harbor investment. You may want to think about getting involved with this electronic currency yourself if you fear that the economy may be on shaky ground.