Can cryptocurrencies be a new safe haven?

Abstract

There are various assets that can be invested in and profited from in the digital age. Finding investments that are anticipated to maintain or improve in value during times of market turmoil allows investors to lower their risk because investments are always subject to risk. Assets that have a high probability of maintaining or appreciating in value are referred to be safe haven assets. Gold has been known as the safe haven asset, however cryptocurrency is a class of digital assets that was a part of a world new transaction security system call Blockchain. Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. Moreover, a blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. cryptocurrency is claimed as the new gold in the digital era. For a long investing history there only a few safe haven asset investors can rely on it, also there a chance that these old safe haven assets performance might be drop in the near future. This might be a good opportunity to study the new asset that might be a new safe haven for an investor in the near future. Consequently, this study aims to answer a question “Can cryptocurrency be a new safe haven?”.