Stocks Down, Crypto Up?

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Bitcoin has proven this theory over a dozen times already in 2019 when a rough day for the traditional markets were met by bull runs of some of the top cryptocurrencies. 

But with an asset as new and unpredictable as Bitcoin, this will need to stay true for bit longer to really convince traditional investors that this is a reliable hedging method, like it is with gold.

Gold which has skyrocketed even in the worst, long term economic recessions, while cypto has only proven itself as something to turn to for relief on a bad day.

However, one advantage over gold is emerging - when stocks go up, Bitcoin appears to be unaffected, while gold typically declines in value when the rest of the economy is doing well.

While crypto is looking like the perfect hedge for short term investments, the big question remains - would people really turn to crypto in a serious economic downturn, one lasting months or longer? Or, is what we're seeing only because the bad days on Wall Street really aren't that bad?

Still, even if investors wouldn't turn to crypto to get through a bad year, if it continues to help them get though bad days, we can expect a lot more to begin implementing this strategy! 

Video courtesy of CNBC

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