Definitely, it has been a devastating week for Bitcoin, following its gradual drop ever since Monday from $11.540.70 to as low as $9,586.95. Even with such a massive drop, all it’s not lost, for the corporate world is still praising Bitcoin in different ways. For instance, DataTrek Research, a market research firm, has just applauded Bitcoin as a geopolitical turmoil indicator.
According to DataTrek Research Co-founder, Nicholas Colas, Bitcoin is a geopolitical turmoil indicator. Speaking in a recent interview with CNBC, Nicholas Colas argued that Bitcoin is one of the few assets where its price predicted the geopolitical turmoil of different states such as Hong Kong. According to Colas, the Bitcoin price predicted Hong Kong’s protests and the consequential local capital flight. Affirming this during the interview, Colas said,
“We are definitely seeing that, and really are perked up around the Hong Kong protests and some of the currency flight that happened out of Hong Kong and the mainland, and Bitcoin was one of the few assets that we watched that actually predicted that uncertainty ahead of time.”
With that said, Colas expressed his great confidence and belief in Bitcoin as a safe haven asset. Confirming this in the interview, Colas argued that Bitcoin was the only crypto asset that was really moving during the Hong Kong protests. According to Colas,
“Nothing else was really moving, Bitcoin was.”
These remarks by Nicholas Colas on Bitcoin and its price as a prediction for geopolitical risks has been backed up by other renown executives in the cooperate world. For instance, Peter Tchir the former executive director at Deutsche and Forbes contributor in his recent article wrote that
” Bitcoin is the leading indicator of hidden geopolitical tensions.”
For instance, Tchir claims that the Bitcoin price surged back in May after the United States President Donald Trump opened up that a trade deal with China looked tenuous.
Although Nicholas Colas and Peter Trich credits Bitcoin as a geopolitical turmoil indicator, Colas argues that Bitcoin is a new and very volatile asset and as a result, its price will still collapse again. However, for now, Bitcoin is trading well in Hong Kong following continued political certainties. As such, both Colas and Trich recommends you to analyze and focus on a certain country political stability, before investing and trading in bitcoin. If truth be told, a country in a political stable situation would be the ideal environment to invest your Bitcoin.
Choose such a country for that’s a profitable Bitcoin Investment decision.