Tom Lee, a senior analyst at market strategy and research company Fundstrat Global Advisors, is positive that Bitcoin is a safe haven for investors looking to make safe and reliable investments.
In an interview on Aug 15 on the Fox business channel, he was asked “whether Bitcoin is a genuine safe haven” to which he replied by confirming his belief that it was so. Lee said;
“Yes. You can see it in markets. Where there’s turmoil, the local Bitcoin prices tend to surge and trade at a premium, because people are trying to find ways to protect their money. So yes.”
Bitcoin a great diversification hedge
Tom Lee added that Bitcoin has “done very well this year” and reminded the audience that BTC prices were languishing at the $3,000 mark at the start of the year before skyrocketing to the current prices. Though the price of BTC has recently seen a slight dip, Tom sees it as a very healthy investment.
The Fundstrat senior analyst pointed out that Bitcoin was not co-related to equities, and bonds, making it a great diversification hedge. The analyst described BTC’s current dip in price as just a rest, and expressed confidence that prices would head north soon. He added;
“I think it’s going to be much higher by the end of the year, and potentially at a new all-time high. I think anyone who wants to have a 2% or 1% allocation to Bitcoin as a hedge against a lot of things that could go wrong — it’s a smart bet.”
Echoing Mark Yusko
Fundstrat analyst Tom Lee’s remarks are very similar to the opinions that were given by Morgan Creek Capital CEO Mark Yusko just a day a before. While at an interview on CNBC’s fast money, Yusko referred to Bitcoin (BTC) as a “chaos hedge, or schmuck insurance,”
Yusko went to add;
“You want to have 1, 2, 3, 5% of your net worth in this asset as a hedge, against all the problems that we see in the fiat markets and the equity markets.”
Yusko has been consistent in his Bitcoin advocacy, having said back in May that Bitcoin should be part of every investor’s portfolio.
Bitcoin and its doubters
Despite Bitcoin’s decent 2019 run, the cryptocurrency still has its doubters. Cynics believe that Bitcoin is way too volatile to be a safe store of value. One of the cynics is Billionaire Warren Buffet who famously referred to it as “Rat poison”. Another high profile cynic is fellow Billionaire and current US President Donald Trump who recently made his feelings known on Twitter.
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