According to a recent case study conducted by the digital assets investment firm Grayscale Investments, Bitcoin (BTC) could be used as a hedge against financial instability.

The study takes a look at the recent trade hostilities between the United States and China to show how Bitcoin has outperformed traditional currencies in the midst of this economic uncertainty. The study suggested that:

“With continued adoption, Bitcoin represents a transparent, immutable, and global form of liquidity that can provide both wealth preservation and growth opportunities. As a result, we believe it deserves a steady strategic position within many long-term investment portfolios.”

For anyone keeping up with both traditional currency and crypto markets, it’s apparent bitcoin has been on the rise as the trade war has caused turmoil in the economic systems of both countries, but this new study lays out the specifics. According to the study:

“While the risk asset drawdown is still in its very early stages, Bitcoin is on the rise as these risks are just beginning to show up in other asset and currency prices. Since Trump first announced the tariff hike in May, Bitcoin has generated a cumulative return of 104.8% through August 7, versus an average of -0.5% for the twenty other asset classes, markets, and currencies below during the same period.”

As the report notes, this is a study of the largest economies in the world, which comprise roughly 40% of annual global economic output, and bitcoin can still compete among them.

In smaller economies that are facing crisis, cryptocurrency has been used as a safe haven for many years. Cryptocurrency has caught on in places like Ukraine and Venezuela as a matter of necessity. Last week, CryptoGlobe reported that private bitcoin sales through were at an all time high in Venezuela amid unprecedented hyperinflation.

Skeptics Remain

Despite bitcoin’s performance during the crisis, insiders of traditional markets are still largely skeptical of cryptocurrency.

Brian Belski, chief investment strategist at the investment banking company BMO Capital Markets, appeared on CNN Business to voice his doubts about bitcoin as a safe haven. Belski said:

“Bitcoin has been excessively volatile, especially the last couple of years. It’s the sexy kind of thing to go to now. I don’t base my investments on sex appeal. I base my investment on longer-term perspective. And I think the longer-term perspective, in terms of Bitcoin being that safe haven, I think it’s way too soon to call that.”

Another report from Matt Egan of CNN Business indicated that many investors are rushing towards traditional assets like government bonds and gold as a hedge in these difficult times.

However, the bonds are showing negative yields, and gold prices are already at a six-year high.