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Bitcoin (BTC 0.09%) has been a hot topic in the financial world for years, with opinions about the cryptocurrency running the gamut from a "revolutionary new asset class" to a "dangerous speculative bubble." One thing that most experts can agree on, however, is that its volatility has historically made it a less-than-ideal safe-haven asset. But recent market movements seemed to have changed that tune. There are fewer sad trombones and more sparkly vibraphone grooves in the Bitcoin canticle nowadays.

But is the cryptocurrency really ready to serve as a long-term vault for your hard-earned wealth? Let's look closer at Bitcoin's suitability for that august role in light of recent data and expert analyses.

Bitcoin has been on a tear since the beginning of 2023, rising 45% since the start of the year. On the other hand, the S&P 500 (^GSPC 1.76%) index is up by a mere 0.8% over the same period, and gold has gained 2.6%.

Zooming out to a three-year view, you'll find that Bitcoin has outperformed the traditional safe havens of gold and broad stock market indexes again. This time, gold is up by 19%. The S&P 500's dividend-adjusted total return stops at 49%. Over the same span, Bitcoin soared 367% higher.

And if you allow me to go back six years instead, incorporating the surge of 2017 and the 2018 crypto winter into the data, we can see how a $10,000 investment in Bitcoin has performed against gold and the S&P 500 since the spring of 2017:

Bitcoin Price data by YCharts

Of course, past performance is not a reliable indicator of future results. Bitcoin is notoriously volatile, and its value could plummet just as quickly as it has risen. The chart above, impressive as it is, also shows many dramatic price drops over the years.

But it seems that Bitcoin has finally established itself as a contender in the category of safe-haven assets. As investors seek out alternatives to traditional value stores, like precious metals or diverse stock market indexes, Bitcoin's unique characteristics and limited supply could make it an attractive option for those looking to protect their wealth against inflation and currency fluctuations.

And that's right in line with the original intentions of Satoshi Nakamoto, Bitcoin's unknown inventor (or group of inventors). The cryptocurrency was designed to resist inflation through a lifetime maximum of 21 million digital coins, and 19.3 million of them are already minted. This capped long-term supply is similar to the limited amount of gold on the planet, which is why Bitcoin bulls often refer to it as "digital gold."

Despite its volatility, some market experts believe that Bitcoin could continue to serve as a safe-haven asset in the future. Beyond the gold-like supply-and-demand equation, some Bitcoin gurus point to the growing interest from institutional investors and large corporations. As a result, the cryptocurrency may be becoming more mainstream and accepted as a legitimate asset class.

In fact, companies like Tesla (TSLA 2.04%) and Block (SQ 1.38%) have even added Bitcoin to their balance sheets, further signaling their confidence in the cryptocurrency. Taking that idea to its next logical step, business software builder MicroStrategy (MSTR 5.95%) has converted most of its cash reserves into Bitcoin -- and keeps buying more coins financed by a combination of cash flows, loans, and stock sales.

deVere Group CEO Nigel Green calls the current banking crisis a "springboard event" for Bitcoin as traditional-minded investors start to treat the digital asset as a safe port in the storm. The financial shake-up may inspire others to follow in the steps of Tesla, Block, and MicroStrategy. Massive long-term inflation of the U.S. dollar is a critical part of this scenario: "Investors are therefore looking for alternative currencies, such as cryptocurrencies," Green writes in a recent press release. "Moving forward, these will increasingly compete with traditional, fiat ones, and this will help trigger the decreasing dominance of currently leading international currencies."

Nobody knows for sure where Bitcoin is going next. The crypto winter may be thawing as we speak, or another cold snap could bring Bitcoin prices down again in 2023.

But I think it's abundantly clear by now that cryptocurrencies are here to stay, and that Bitcoin will probably be a reliable store of wealth for many years. MicroStrategy chairman Michael Saylor may be onto something after all. Truly committed Bitcoin bulls with diamond hands should see stellar results a few years down the road.

That being said, I still don't want to convert my entire net worth into Bitcoin and take out loans to buy more. Leave that to the professional risk-takers for now. Instead, I'm happy with a modest Bitcoin position that could serve me well in the long run without adding much short-term risk. It's a good place to park cash you won't need for at least a year or two, allowing Bitcoin to get over speed bumps and challenges on the road to sustained wealth. In fact, that's how I think about all investments. Saintly patience is arguably the best quality an investor could have. Just ask Warren Buffett or Peter Lynch.

Read more:

Is Bitcoin a Safe-Haven Asset Now? Recent Data and Market ... - The Motley Fool

It is time to buy gold and Bitcoin (BTC), according to Mike Novogratz, the CEO of Galaxy Digital. There are multiple issues that affected the markets in recent days, including the crisis that is affecting banks such as Silvergate Bank, Signature Bank and Silicon Valley Bank. In Europe, banks have also been affected, something that could continue in the coming days.

It seems to be time to buy gold, silver and Bitcoin according to Mike Novogratz, one of the largest supporters of the cryptocurrency ecosystem. During a recent conversation on CNBCs Squawk Box, Novogratz talked about banks, lending, the economy, and Bitcoin.

During the conversation, he compared the current situation in the market with 2018s rate hikes and how this could create a similar situation as back then. There is a combination of factors that are pushing the US economy into a credit crunch and that he believes are sending the US economy into a recession.

One of the ways to stop that is for the US Fed to stop hiking rates, otherwise, things could become more difficult for the economy. Additionally, he talked about how Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies in the market, have been moving in recent weeks.

When he was asked about a possible contagion to other banks, Novogratz said that if the Fed does not do something more consistent there could be more problems with regional banks, which could add more pressure to the whole banking system.

At the same time, Novogratz talked about a credit crunch and the implications that this could have on the economy.

On that matter, Novogratz said during the conversation:

Now you have a market that is gonna go into a credit crunch. How do banks rebuild capital? They lend less. And so, you are gonna see a credit crunch happening in the United States. This is starting to get priced in the markets in a dramatic way.

Furthermore, he mentioned that he would be long Bitcoin, Gold and Silver. He said that Bitcoin was also created for these types of situations and environments. Lets not forget that while traditional financial markets have been moving lower, Bitcoin and other cryptocurrencies turned bullish.

After the most recent situation with banks and the current volatile environment in traditional financial markets, Bitcoin skyrocketed and hit $25,000. Now, the largest cryptocurrency in the world is being traded above $24,000 according to data shared by CoinGecko.

At the time of writing this article, Bitcoin registered 0.7% gains in the last hour alone, pushing its price to $24,750 in some cryptocurrency exchanges. With this price, Bitcoins market capitalization is currently at $477 billion, showing its strength as the largest and most robust digital asset in the market.

Bitcoin was created back in 2008 and released in 2009 by Satoshi Nakamoto during the banking crisis in the United States that then hit the whole world. We have seen Bitcoin surge to $20,000 in 2017 and then reach an all-time high of $69,000 in November 2021.

With the current situation in traditional financial markets, Bitcoin has been moving higher, showing that there is a clear interest from individuals and investors to get access to it in difficult times. Banks are now experiencing large pressure and might need the help of central banks in order to be able to redeem all funds.

When it comes to gold, its price has been moving higher in recent weeks, pushing its price to over $1,920 per ounce. This shows that there is a clear interest not only in Bitcoin but also in this precious metal, as explained by Mike Novogratz. With the current crisis in the banking sector, it might be better to keep value in gold or Bitcoin. However, things could change at any moment, as the government might decide to take a regulatory decision that could impact the markets.

It will be very important to see how this week will finish ad Credit Suisse has also been affected in Europe and Swiss authorities are being pressed to take the necessary actions and stabilize the current situation.

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Mike Novogratz Says Its Time To Buy Gold And Bitcoin - UseTheBitcoin