Bitcoin Can Be Considered a Safe Haven, Analyst Argues

Michael LaVere
  • Analyst Dave Chapman told CNBC that bitcoin can be considered a safe-haven asset and insurance policy against economic uncertainty.
  • Chapman highlighted the changing attitude of Wall Street banks towards bitcoin as a positive sign for the industry.

Analyst Dave Chapman has argued that bitcoin can be a safe haven against economic uncertainty and that few assets have performed as well as BTC so far this year. 

Chapman, who is the executive director for Hong Kong-based BC Technology Group Ltd., told CNBC in an interview that bitcoin should be considered a safe haven asset despite its recent drop in price. 

He said, 

I think bitcoin can be considered a safe haven, relatively speaking. Despite the current macro environment and the pandemonium that has kickstarted 2020 bitcoin is still up 23% year to date.

He continued, adding there are "very few investments that have performed equally as great as bitcoin this year or frankly others." Chapman said the two most common questions he receives from investors concern bitcoin’s status as a safe haven asset and whether the price is uncorrelated to other asset classes. 

He told CNBC, 

If you look at what’s happening with bitcoin at times of political unrest and economic uncertainty, at times bitcoin does appreciate...if you look at what’s happening in US equities today, US equities are down 5% to 10% where bitcoin is up 2%. I think personally that’s quite telling.

Chapman also highlighted the changing attitude towards bitcoin from JPMorgan and other Wall Street entities as a positive sign for the industry. 

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Luxury Cars and $15 Million in Crypto Seized in Chinese Arbitrage Scam Bust

Michael LaVere
  • Chinese authorities seized $15M in crypto and several supercars following scam ring bust.
  • The group was allegedly operating an arbitrage scam that promised users fake Huobi Tokens. 

Chinese authorities have reportedly seized more than $15 million in crypto-assets and $2 million in supercars after busting up an arbitrage scam selling counterfeit tokens. 

According to a report by China’s Ministry of Public Security, police in the city of Wenzhou arrested 10 individuals connected to operating a fraudulent cryptocurrency scheme. The report claims the arbitrage group was scamming victims using blockchain smart contracts to generate fake cryptocurrencies. 

Following the bust, authorities seized bitcoin, ether, and tether worth over 100 million yuan ($15 million). The report also claims police seized several supercars, including a Ferrari and a McLaren valued at more than $2 million, in addition to the luxury villa in which the scammers were staying. 

The arrested individuals had reportedly operated a smart contract scheme since 2019, which advertised a blockchain product that claimed to generate Huobi’s native token HT. Unsuspecting consumers were promised the tokens would generate arbitrage opportunities worth a return of up to 8%. 

One victim, identified as Li in the report, first notified police after joining a Telegram group belonging to the scam artists. 

Li told authorities, 

Simply put, you send one unit of ETH to a designated address, you will receive 60 HT. And then you can sell it to gain the difference.

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