A ‘Severe’ Financial Crisis Could Hurt Bitcoin, Warns Venture Capitalist

By CCN Markets: The Dow Jones Industrial Average has been moving south for the past one month, and what’s surprising to see is that the price of bitcoin has followed suit.

Chart showing bitcoin and DJIA
The Dow has been sliding over the past month, and bitcoin has followed suit. | Source: Yahoo! Finance

The falling price of bitcoin is in stark contrast to the narrative that the cryptocurrency is a safe-haven asset that investors will flock to at times when the stock market is in distress. Now one blockchain venture capitalist believes that bitcoin might not save you when there is a severe financial crisis, and that’s not the first time we are hearing it.

Blockchain Capital’s Bogart drops a bomb

In an interview with Bloomberg, Blockchain Capital general partner Spencer Bogart was asked if he thinks bitcoin to be a safe-haven or like “any other asset.” Bogart decided to tread the middle path. He said:

“I think longer term Bitcoin will absolutely be a safe haven. I mean as it grows up the adoption curve we see bitcoin kind of evolving as it goes. So I think right now it is kind of in this intermediate state right now where you really have to think what the risks are and how severe are they.

So I think that when you have looming risks of monetary devaluation, things like this, Bitcoin certainly looks very attractive, and I think that was a large driver of the recent run-up in price.”

But it didn’t take long for Bogart to temper his bullishness. In fact, he delivered a surprising contradiction with his next statement:

“When you think about really severe crises taking place, a liquidity crunch, another global financial crisis, I think that Bitcoin will struggle to do very well from a price perspective.”

This is something that a lot of bitcoin bulls wouldn’t have liked to hear as bitcoin has been projected as an alternative to gold thanks to the uncorrelated…

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