6 Yue 22 Ri, Facebook co-founder ChrisHughes said, Facebook will launch a global digital currency Libra , this news will bring the field of digital currency and payment to a new level. Many partners, including Visa , Mastercard , Paypal and Uber will also participate Libra project, assist in the management of this digital currency. Facebook represents, Libra will provide a low-cost way to a global 17 can not easily access to traditional financial services million to provide support. After the announcement, the same as bitcoin digital currency to rekindle people's interest, and investors sought a safe haven has pushed up the price of Bitcoin. So, digital currencies will replace gold and silver to become the next safe-haven assets do?
A, bit hedge attribute credits
With the chaos affecting Sino-US trade war and other global markets caused investors are looking for some attempt not affected assets, investors become one of the popular digital currency options, but whether it ideal for safe-haven assets ?
With the Federal Reserve cut interest rates, the yuan broke 7 occurred a series of major events, gold and other safe-haven attributes Bitcoin assets has become increasingly evident, WOEX Exchange official says. Since the upgrade Sino-US trade news, gold has jumped to the highest point in six years, or about 4 %. Bitcoin prices since last week rose by nearly 20 % Bitcoin again to break through 11500 Meiyuan mark, and the consequent, is its market share ( BTC Dominance ) soaring again, BTC Dominance index has reached 67.6% , from 70 % the key ratio is getting closer. According to the data than push, square ether, bit cash credits, etc. litecoin up more than . 5 %.
Jefferies LLC head of foreign exchange Brad Bechtel said, "Bitcoin does look a bit like a safe-haven asset when markets stabilize and rise, Bitcoin will be weak. But whenever we see the market turmoil and began to sell, you will see Bitcoin and safe-haven assets soaring. "
Austrian economist Ron Paul said: I am very confident Bitcoin has become a hedge against uncertainty, particularly in the international market. Since 2013 Niandi BTC reached 1000 since the dollar is indeed the case.
Second, bit credits can not serve as a safe haven
For the Bitcoin as a safe-haven assets as asset allocation, but also a lot of people are deeply skeptical, gold Code http://www.kaifx.cn/question/kaifx/1460.html
Bitcoin critic Peter Schiff said: I think it does not become a protective measure. I think there are speculators to buy it speculated that someone might buy it as a hedge. Although Schiff said bitcoin "to replicate the gold become better properties than other commodities currency," but he also said that Bitcoin "is not" hard assets and, "not" like gold, gold think it's a lack of potential demand and as a utility product.
Recently, Bloomberg reported a "Bitcoin is not an ideal safe-haven assets," the article, the article interviewed Boston Flipside Crypto CEO Dave Balter said the funds deposited in US Treasury bonds and other assets, as these assets are government-backed or into gold, which is seen as a weak dollar and inflation hedge, the performance of these assets are generally stable, but Bitcoin is very unstable. "The risk is that Bitcoin will overnight rise or fall by 20% . Bitcoin always rose fell, frankly should not be so safe-haven assets. These investors may find it not as a traditional safe-haven assets so Safety."
In fact, according to Bloomberg data, the average daily volatility last month Bitcoin is more than 4.7 % from 7 beginning of the month appear 4 times daily volatility double-digit rate. In contrast, the average volatility of gold over the same period was 0.8 %.
In summary point of view, in the short run digital currency is still at the stage of being accepted by the market and norms, in terms of its safe-haven attributes, although optimistic about the large institutions, participation of retail investors is not very high, and many more geeks and agencies the Lord. The gold and silver as a traditional safe-haven assets, maintaining the dollar index, interest rates, exchange rates negatively correlated with the global economic environment is bound to promote the downside risk aversion rising gold. Therefore, in the short term, temporary digital currency will not replace gold and silver to become the next safe-haven assets, as Dario expressed as the founder of the world's largest hedge funds, investors have pushed into stocks and other rate of return similar stock assets. Too many people hold such securities, and may face diminishing returns. Most likely do best investments will be those that perform well in the investment currency devaluation, serious domestic and international conflicts, such as gold.
In the new paradigm shift in the portfolio, increase the portfolio of gold not only reduce risk, but also improve the rate of return, therefore, gold is an effective portfolio diversification tool. In the long run, with respect to central banks Libra , for example the introduction of the new monetary policy, market acceptance and awareness gradually increased, or to become a digital currency after the dollar, US bonds, gold and silver safe-haven assets.