COVID 19: Bitcoin to Gain Relevance as a Safe-Haven Different From Treasury Bonds

Some analysts believe that both Bitcoin and Gold have fallen as investors sell them to make ends meet for quick money. The U.S. treasuries were kept for not being able to be liquidated so quickly.

Equating the two categories of assets isn’t easy. Bitcoin and gold are trustless. Its success relies solely on forces of supply and demand, a government or central bank can’t control its availability. On the other hand, treasuries need trust in the US’s competence and ethics. Federal Reserve. When the centralized organization wants to play games with the dollar supply, its worth may easily be eroded.

Thanks to the immense strength of the American economy and the sound monetary policy of the Fed, U.S. Treasuries have gained a sterling reputation as a stable investment over the past decades. However, it is naive to believe that the U.S. central bank would not play with the money supply easily and loose if it feels the need. This was done to bring down unemployment in the 1970s. And then several other nations have done the same repeatedly.

United States Economy
The USA is now facing an unprecedented economic downturn in the present era. While confidence in its bonds reflects a well-served tradition, it can not be focused on two weeks’ worth of data to determine their long-term value under the present circumstances.

Printing more money would be one way to ease the all-but-certain recession, thereby pushing up inflation. Such a strategy would crash the value of currently owned treasuries.

On either end, blockchain assets remain highly volatile and come with their risk list. However, something that does not exist is the ability for a single body to play regularly with the supply or distribution thereof. This reality represents an excellent safe-haven for many.