Why Bitcoin is seen as a safe haven in an era of monetary uncertainty

According to The Guardian, Bitcoin usage has increased in Venezuela, where the 100-Bolivar note is expected to be withdrawn from circulation. Venezuela has the highest inflation rate in the world, and Venezuelans are increasingly using Bitcoin to buy necessities and pay workers. Foreign exchange transactions in Venezuela are strictly controlled, but Bitcoin is in a legal gray area.

Bitcoin has several features that make it an attractive investment during this period of economic uncertainty. Bitcoin transactions do not require third-party verification, and the blockchain and the network itself keep a public record of all transactions. Cryptocurrencies are free from the control of governments or banking systems around the world. Bitcoin users can make transactions using computers or mobile devices, and transactions can occur instantly.

Bitcoin is a universally accepted currency that can be used to order goods from one country to another. Many Venezuelan users have been using it to buy goods from neighboring Colombia, sometimes with visiting friends bringing them goods or by mailing them. Bitcoin can also be used to buy goods from the United States, even though foreign exchange transactions are strictly controlled, and Bitcoin acts as a proxy. In this period of economic uncertainty, Bitcoin is seen as a safe haven.

While the value of bitcoin can rise and fall, the cryptocurrency sometimes offers better long-term stability than more volatile real-world currencies. The latest evidence of this is the rise in bitcoin usage in Venezuela, a country that has seen economic disruptions bring with it an uptick in usage.

Bitcoin usage in Venezuela increased sevenfold. China's volatile stock market pushed Bitcoin to a three-year high. India's withdrawal of high-value banknotes also led to an increase in Bitcoin trading. As the US stock market plummeted in response to Trump's imminent victory, the value of Bitcoin soared, according to The Next Web.

In India, Unocoin is a convenient mobile wallet for tracking Bitcoin pricing, exchanging Indian currency, and investing in Bitcoin regularly. The value of Bitcoin depends on people's willingness. If another more competitive cryptocurrency is widely adopted, then Bitcoin will lose its value. But for now, Bitcoin as a cryptocurrency seems to continue to increase in value and grow.