• The co-founder of Bitcoin.org, who goes by the CØ₿RA moniker, has spoken against Bitcoin’s status as a safe-haven asset.
  • He expects a fall in BTC demand due to the economic crisis caused by the current pandemic.

The co-founder of Bitcoin.org, who goes by the CØ₿RA moniker, has spoken against Bitcoin’s status as a safe-haven asset. He recently questioned whether crypto-assets, including Bitcoin, can be considered a safe haven from the volatility of traditional markets. In a recent tweet, CØ₿RA warned against the use of Bitcoin to hedge against the traditional financial system.

The biggest investment mistake you can make is to assume Bitcoin and cryptocurrencies, in general, are a hedge against the traditional finance system and to naively believe Bitcoin will negate your losses from recession and stock market collapse. -@CobraBitcoin

CØ₿RA further explained that people consider Bitcoin to be a risky investment and are more likely to buy BTC when they have surplus cash. The co-founder expects a fall in demand for Bitcoin due to the economic meltdown and massive surge in unemployment caused by Coronavirus.

People buy Bitcoin when they have extra cash to invest in something risky, and that's during good times, because when times are good you can afford to gamble and dream. Nobody's going to buy BTC when they've lost their job, can't afford their house, and are struggling to get by. -@CobraBitcoin

CØ₿RA said that the crypto market is driven by greed-fueled investment and “newbies.”

The entire cryptocurrency market is sustained almost entirely by newbies jumping in blind and buying coins just because of greedy expectations of future value, value based on perception not any utility, they will dump first when shit gets real. -@BitcoinCobra

The Bitcoin.org co-founder believes BTC’s price will drop to $1000 - $2000 in the event of an economic depression as most investors would sell their crypto-assets to manage essential costs.

If we enter into a deep depression, I wouldn't be surprised if Bitcoin was trading somewhere $1000-$2000, only the most stubborn hodlers will remain, the rest will have dumped a lot, by necessity because they will need the money for rent, food, keeping their business afloat, etc. -@BitcoinCobra


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound

Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound

Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.

More Cryptocurrencies News
US SEC may declare XRP a 'commodity' as Ripple settlement talks begins

US SEC may declare XRP a 'commodity' as Ripple settlement talks begins

The US SEC is considering declaring XRP as a commodity in the ongoing settlement talks with Ripple Labs. FOX News reports suggest Ethereum's regulatory status remains a key reference for XRP’s litigation verdict.

More Ripple News
Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause

Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause

Cardano price stabilized above $0.70 after posting another 5% decline in its 3rd consecutive losing day. Multiple ADA derivatives trading signals are leaning bullish, but the US trade war impact outweighs the positive shift in inflation indices. 

More Cardano News
Stablecoin regulatory bill receives green light during Banking Committee hearing

Stablecoin regulatory bill receives green light during Banking Committee hearing

The US Senate Banking Committee voted on Thursday to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to establish proper regulations for stablecoin payments in the country.

More Cryptocurrencies News
Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation

Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation

Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead. 

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP