Venture Capitalist: “Severe Financial Crisis Could Hurt Bitcoin”

In the latest cryptocurrency news, we can see that Bitcoin visited the four digits mark again and fell below $10,000 – just like the Dow Jones Industrial Average index, which has been moving south for the past one month. What is surprising to see is that the price of Bitcoin has followed the same trend. According to a venture capitalist, cryptocurrency is nowhere near a safe-haven asset and could hurt a lot of investors if a financial crisis knocks on our doors.

The falling price of Bitcoin currently is in a lot of contrast to the narrative that crypto is a safe-haven asset. In an interview with Bloomberg, one blockchain venture capitalist named Spencer Bogart said that BTC might not save you when there is a severe financial crisis – and this is not the first time we are hearing such a statement.

The Blockchain Capital general partner Spencer Bogart was asked if he thinks that Bitcoin can be a safe-having or like “any other asset” in general. The venture capitalist decided to tread the middle path and noted:

“I think longer term Bitcoin will absolutely be a safe haven. I mean as it grows up the adoption curve we see bitcoin kind of evolving as it goes. So I think right now it is kind of in this intermediate state right now where you really have to think what the risks are and how severe are they.

So I think that when you have looming risks of monetary devaluation, things like this, Bitcoin certainly looks very attractive, and I think that was a large driver of the recent run-up in price.”

Bogart is bullish on Bitcoin but not on altcoins, the coming altcoin news show. This is why he talked more about crises and said he believes in BTC:

“When you think about really severe crises taking place, a liquidity crunch, another global financial crisis, I think that Bitcoin will struggle to do very well from a price perspective.”

As you can see, this is something that a lot of Bitcoin bulls wouldn’t have liked to hear – mostly because Bitcoin has been projected as an alternative to gold thanks to the uncorrelated nature that it displayed earlier this year.