Bitcoin Seen As Hedge Against Confiscation of Wealth

Bitcoin Digital Gold


The popularity of Bitcoin soars with price, naturally. In fact, the digital currency owes the attention and adoption to the 2017 bull market when the coin ended the year at nearly $20,000. It has since experienced a bear market, especially in 2018 when the price dropped to nearly $3000 and in 2020 when the price dropped to nearly $3500. 


However, 2020 may yet prove another attractive year for Bitcoin as January has already proven to be the first month for the premier currency in 7 years. 


Bitcoin as a Hedge


Cathie W., the ARK founder stated recently in an interview that she has great confidence in Bitcoin as the digital gold among cryptocurrencies. She maintained that the fact that Bitcoin rose in dominance from less than 30 percent during the bear market to more than 70 percent at the moment is an indication that it is the reserve currency of the coin market.


Cathie is someone that you should listen to as far as investment advisory is concerned because her company ARK has made some very smart investment choices in the past. She has recently listed Bitcoin as one of the top investment prospects for 2020. 


Cathie W. stated that her confidence in Bitcoin has increased dramatically because it has the behavior of a reserve currency. She is confident that Bitcoin would do well as a store of value which would help people hedge against confiscation of wealth. These include inflation and unforeseen government policies.


She said there is 5 percent probability that anyone with investable assets worth more than $1 million could face confiscation in their lifetime. What better hedging alternative is there like cryptocurrency, Bitcoin especially which the individual could access from any country and save themselves from financial crises.


Bitcoin Market Capitalization goes to $3 Trillion


According to Cathie W., the cryptocurrency is expected to easily grow from $200 billion capitalization to $3 trillion in the next five years. With soaring confidence in the digital asset as a store of value, many investors are looking up to it as a source of investment and security. 


“We have a very high expectation on Bitcoin as a digital gold. We would not be surprised it’s encroaching on 200 billion in net worth value. We won’t be surprised to see that get to $3 trillion in the next 5 years. It could just be as a store of value and a hedge against confiscation of wealth,” she said.


The easy with which Bitcoin capitalization would grow is a result of emerging markets and the increased public awareness of the industry. This combined with people’s desire to safeguard their assets makes Bitcoin the investment instrument of the future. This will even be more pronounced as monetary policies getting more unstable in the world.


Bitcoin Privacy Concerns


Would you like someone to know how much digital gold you have? Sure, you don’t. So the best way to avoid tracing your Bitcoin address is to use tools like Crypto Mixer which adds an extra layer of privacy on your transactions.