Bitcoin Failed Its ‘Safe Haven Test’ After 7% Drop: Peter Schiff

The popular analyst Peter Schiff is in the latest cryptocurrency news again for explaining what caused the drop of 7% for Bitcoin (BTC) – and what led to a bloodbath on the markets. According to Schiff, Bitcoin failed its safe haven test and the BTC/USD pair dipped below $10,000 once again on Thursday, putting the pay to theories that it functioned as a hedge against fiat volatility.

Schiff explained the above mentioned in a tweet on August 28, noting that Bitcoin dipping below $10,000 is a sign of volatility. He said:

“Bitcoin has again failed the safe haven test. On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe havens. The Japanese yen, Swiss franc, and especially gold all moved higher. Yet Bitcoin plunged by more than stocks!”

Bitcoin has again failed the safe haven test. On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe havens. The Japanese yen, Swiss franc, and especially gold all moved higher. Yet Bitcoin plunged by more than stocks!

— Peter Schiff (@PeterSchiff) August 28, 2019

Aside from noting that Bitcoin failed its safe haven asset test, Schiff was featured on many best cryptocurrency news sites for referencing a popular theory about BTC and the investment habits which has been constant over the past two months. His popular theory on the investment habits see Bitcoin as an option to preserve wealth for those in the affected regions such as Venezuela and Hong Kong.

As we can see in our altcoin news, the overall Bitcoin network volatility hit new two month lows last week – and the altcoins are bleeding. Now, however, the fresh move down has spurred many critics such as Schiff who said:

“Since last Thursday Bitcoin has lost more value than any of the major stock market indexes, while gold and silver have gone up.”

Schiff said that Bitcoin failed its test as a safe haven asset. However, his argument was lost on the Bitcoin proponents. One of them was the Twitter account known as Parabolic Trav, who asked:

“Why on earth would Bitcoin be a safe haven? Bonds are the safe haven in the current paradigm. Nor is gold a safe haven.”

In an event which could have contributed to Bitcoin’s fall, the issuance of such bonds would decrease the borrowing costs for Washington and limit the taxpayer exposure to the US and its almost trillion-dollar annual budget deficit.

“Bitcoin is simply, over time, ‘number go up. If you try to fit it into the legacy financial analysis box, you’ll be rekt Which is what you are Pete,” Trav concluded.