Bitcoin.org Co-Founder CØ₿RA Argues Against Bitcoin’s Safe Haven Status

Michael LaVere
  • Bitcoin.org cofounder CØ₿RA has warned against using bitcoin as a hedge for traditional market volatility.
  • CØ₿RA predicts the demand for bitcoin and risky assets will fall as we enter an economic recession. 

Bitcoin.org’s co-founder, who goes by the CØ₿RA moniker, has argued against bitcoin’s status as a safe-haven asset. 

According to a series of tweets published April 8, CØ₿RA has called into question whether bitcoin and other cryptoassets can be considered a safe haven from the volatility of traditional markets. CØ₿RA warned against using bitcoin to hedge against the traditional financial system and called it “the biggest mistake” an investor could make in the current economy. 

CØ₿RA explained that people view bitcoin as a risky investment and are more inclined to purchase BTC when they have extra cash. With the economic fallout and massive surge in unemployment due to the coronavirus pandemic, the Bitcoin.org co-founder anticipates a fall in demand for bitcoin.

CØ₿RA went on to write the entire cryptocurrency market is sustained by “newbies” and greed-fueled investment. 

He concluded by predicting that bitcoin’s price could fall to $1K - $2K in the event of an economic depression, with most investors selling their crypto-assets to cover more essential personal costs. 

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