Uh-Oh!!!
The post-WW2 paradigm is in trouble. There does not seem to be a financial safe haven in any corner: fiat money, corrupt corporate and government bonds, overvalued stocks of companies that produce cheap, unnecessary “goods” (razor blades that exfoliate!)…where is the exit?
What about cryptocurrency? Is cryptocurrency a safe haven?
Nope.
Safe Haven - an asset or class of assets that are segregated from, and largely immune from, the post-WW2 paradigm.
Cryptocurrencies utilize a “private key - public key” digital wallet. The private key is held by the user. The public key is held in the blockchain, which is run over the modern internet, which runs over physical infrastructure provided by companies like AT&T (underwater sea cables!). If the private key is lost, the cryptocurrency is inaccessible. Additionally, if the public key is not accessible – if the internet doesn’t work or is unavailable for any reason whatsoever – then the cryptocurrency is also inaccessible.
A user may physically possess their private keys, but the effective owner of the public key is, for example, Verizon (cellular internet service provider) and Comcast (home/office internet service provider). The public keys are not “on the internet” as is so often claimed, they are instead “on the Internet Service Provider (ISP).” Without an ISP account, you can’t access “your” cryptocurrency. So far, that has been the “advancement” made by cryptocurrency: trading one master, banks, for another, telcos.
What’s the difference between USD on deposit with a bank, and cryptocurrency public keys “on deposit” with ISP providers?
Cryptocurrencies are not a hedge against the fiat system, they are instead a bet on Big Telecom replacing Big Banks.