Financial technology company Revolut is ensuring that all seven million of its customers have access to cryptocurrency in the coming days. According to the company, cryptocurrency is a “safe haven” against inflation and other economic troubles.
Revolut Vouches for Crypto
The question of cryptocurrency as a “safe haven” has been bouncing back and forth between the industry’s walls these last few weeks. Ever since the coronavirus took hold of the world, many are wondering how bitcoin and its altcoin cousins can help them and if it has any power to ensure wealth stays put during times of financial strife.
There are fans of bitcoin who claim that the cryptocurrency is equivalent to gold. They say that should fiat currencies ever suffer or devalue, then bitcoin will allow users to keep themselves safe and secure and give them access to the financial tools they’ll need to access goods and services.
Revolut falls into this category, and the company wants to give all its clients the chance to diversify their portfolios and gain access to tradeable assets that they otherwise never would have used. The news that customers will have access to crypto trading comes not long after Revolut said it would permit the purchasing of gold through its website.
Cryptocurrency is proving to be the ultimate trading arena for some. Ido Sadeh – founder of the stable currency SAGA – explains that the coronavirus has everyone on edge and engaging in financial activity they otherwise would have never considered. He explains:
The markets are in shock and there are lots of technical elements that are affecting their behavior, so it is too soon to tell what will prove to be a safe-haven. We also need to qualify a lot of the expectations that bitcoin is a safe-haven simply because it’s disconnected, which to date have not been fulfilled.
For those who argue against bitcoin and crypto’s alleged “safe haven” statuses, they point to the fact that many cryptocurrencies lost loads of value in mid-March after bitcoin and its altcoin cousins were subjected to several selloffs that brought about the end of their February high points. People were confused about what was going on and sought to get rid of as many speculative assets as they could to maintain their cash hoards.
People Doing Strange Things in Strange Times
SEBA head of research Yves Longchamp explained in an interview:
When you have crises, people fly to liquidity and sell whatever they can. They don’t differentiate between the types of asset, so bitcoin was caught up in this spiral.
The idea is that many sold both their stocks and their bitcoin stashes, which caused the assets to correlate and fall in sync with each other. However, SEBA believes this is not going to be a regular occurrence, and that both stocks and crypto will follow their own paths in the future.