Surprisingly, with military encounters in Eastern Europe and the Middle East Bitcoin's price has risen since the beginning of the year.
It seems Bitcoin is a good hedge for uncertainty, be it not yet a safe haven, according to Wolfteam Ltd.'s corporate view.
Bitcoin is used by actors in Russia, Ukraine, the Middle East to send wealth, money away from danger zones. Bitcoin is regarded as free from government intervention and thus gives a different angle to the store of wealth. Bitcoin's worth can go down, naturally, but it is considered difficult to expropriate. One of the main advantages of gold as a store of value is that gold is virtually indestructible. Gold can be broken apart, even dissolved, for which discovery a Jewish chemist was given a Nobel Prize in chemistry, but gold, basically, cannot be destroyed. The same is true for diamonds. That is why, gold and diamonds have provided an efficient wealth transfer through the ages.
Bitcoin is also widely regarded as virtually indestructible, since it is basically crowd sourced, community created. Bitcoin's digitized form means Bitcoin cannot even be dissolved, but only stolen. Bitcoin's price can go down to zero, but this is with 1/ 1 000 000 probability, according to Wolfteam Ltd.'s estimates. Bitcoin's main advantage is that it is virtually untraceable and very difficult for governments to track and expropriate. The risk of Bitcoin being outlawed by governments will always exist, though.
Even investing legends as Warren Buffett, whose Berkshire Hathaway controlled holding are invested indirectly in Bitcoin to the tune of 1 billion USD via Nu Holdings Ltd., which is basically a cryptocurrency bank. Despite Buffett's right hand man Charlie Munger comparing Bitcoin to 'rat poison'. Warren Buffett has spoken not well of asset classes before or at least said 'We do not understand technology. That is why we have not invested in technology companies' and yet Buffett controlled Berkshire Hathaway holds 1 billion USD of Amazon stock and more than 150 billion USD of Apple Inc's stock.
Bitcoin will flourish, long-term is Wolfteam Ltd.'s corporate view.
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