{"id":138460,"date":"2018-12-06T11:35:34","date_gmt":"2018-12-06T16:35:34","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=138460"},"modified":"2018-12-06T07:07:50","modified_gmt":"2018-12-06T12:07:50","slug":"will-cryptocurrencies-offer-safe-haven-if-global-economy-slows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/12\/will-cryptocurrencies-offer-safe-haven-if-global-economy-slows\/","title":{"rendered":"Will cryptocurrencies offer safe haven if global economy slows?"},"content":{"rendered":"
December 6, 2018<\/div>
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By George Prior<\/strong><\/p>\n

Cryptocurrencies like Bitcoin and Ethereum will increasingly be seen as investors\u2019 \u2018safe havens\u2019 in 2019, affirms an influential tech expert.<\/p>\n

The comments from Ian McLeod of Thomas Crown Art, the world\u2019s leading tech-art agency, follow growing concerns that the global economy is likely to experience a significant slowdown before the end of 2019.<\/p>\n

Leading economic indicators tracked by the OECD have weakened since the start of the year and suggest slower expansion over the next six to nine months.<\/p>\n

Similarly, the wider global expansion that began roughly two years ago has plateaued and become less balanced, according to the International Monetary Fund.<\/p>\n

Mr McLeod observes: \u201cThere\u2019s a growing list of investment tailwinds to consider for 2019. These include significant trade tensions, rising interest rates, political uncertainties, including Brexit, and complacent financial markets.<\/p>

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\u201cThe U.S., the world\u2019s largest economy, has, of course, considerable influence on Asian and\u00a0European economies. As such, should the U.S. stock market plunge \u2013 as it did recently scrapping all of its 2018 gains during a major sell-off – global markets are vulnerable too.\u201d<\/p>\n

He continues: \u201cAgainst this backdrop, we can expect cryptocurrencies will increasingly be seen as investors\u2019 \u2018safe havens\u2019 in 2019 and beyond.<\/p>\n

\u201cWhen the downside of the economy hits, digital assets cryptocurrencies like Bitcoin and Ethereum are likely to be viewed by investors as a robust means of storing wealth, in the same way they do with gold.\u201d<\/p>\n

Mr McLeod adds: \u201cThere are several keys reasons why the likes of Bitcoin and Ethereum will be safe havens.\u00a0 These include scarcity, because there\u2019s a limited supply; permanence, they don\u2019t face any decay or deterioration that erode their value; and future demand certainty as mass adoption of cryptocurrencies and blockchain, the technology that underpins them, takes hold globally.\u201d<\/p>\n

Of this latter point, he comments: \u201cAs\u00a0mainstream adoption is going to dramatically gain momentum in 2019 as the world, especially business, realise ever-more uses for and value of crypto and blockchain.<\/p>\n

\u201cEthereum\u2019s blockchain, for instance, is used in our art business.\u00a0 It has allowed us to create a system to use artworks as a literal store of value; it becomes a cryptocurrency wallet.<\/p>\n

\u201cIt also solves authenticity and provenance issues \u2013 essential in the world of art.\u00a0 All our works of art are logged on the Ethereum\u2019s blockchain with a unique \u2018smART\u2019 contract.\u201d<\/p>\n

The tech expert concludes: \u201cWe are some way off from cryptocurrencies replacing the Swiss Franc, the Japanese Yen or gold as the preferred safe haven assets.<\/p>\n

\u201cHowever, as the world moves from fiat money to digital, and as adoption of crypto picks up, there can be no doubt that cryptocurrencies will be firmly in the pantheon of safe haven assets within in the next decade.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Cryptocurrencies like Bitcoin and Ethereum will increasingly be seen as investors\u2019 \u2018safe havens\u2019 in 2019, affirms an influential tech expert. The comments from Ian McLeod of Thomas Crown Art, the world\u2019s leading tech-art agency, follow growing concerns that the global economy is likely to experience a significant slowdown before the end of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-138460","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=138460"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138460\/revisions"}],"predecessor-version":[{"id":138461,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138460\/revisions\/138461"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=138460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=138460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=138460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}