Crypto market analyst Joe Saz says that right now, there’s a better safe-haven asset than both Bitcoin (BTC) and gold out there.
In a scenario where people are panicking about their very survival, Saz says true safe-haven assets become the bare necessities that can ensure people stay alive and well.
“Consumers are pulling money out of stocks and such to buy things that they think are more essential needs now. I think that’s what consumers are doing right now: doomsday prepping essentially. That’s caused an impact on our overall view of what’s a safe haven and what isn’t.
Is a stock really a safe-haven asset if the world is in a global epidemic and supply chains are shut down? Or, is food a safe-haven asset? I would argue obviously that food is your better bet, and I think a lot of people are, too. So I have a feeling that’s where money is transferring to.”
"I think there might be a situation here where people are looking for the shovels and not quite the gold" – @Joe_Saz
— BLOCKTV (@BLOCKTVnews) March 10, 2020
For now, Saz explains the sharp reversal in the price of Bitcoin by noting that people are currently re-prioritizing the essentials. And right now, cash is king.
In the long run and outside of rare, deadly and worrisome events like the coronavirus, Saz says he believes BTC will prove its worth as a viable safe-haven asset.
“As far as Bitcoin is concerned, it is a safe-haven asset. It’s just a matter of whether or not people are ready for it.”
In the meantime, the safe-haven and store-of-value narratives continue to be tested, with the leading cryptocurrency dropping in tandem with the stock market in recent days.