Yesterday around mid-afternoon here on the East coast, the Chinese Yuan weakened considerably against the Dollar. Whether or not the cause of the sharp movement of the Yuan-Dollar cross was caused by the trade war with the US that is heating up, the crisis unfolding in Hong Kong, or some structural problems with China’s financial system is something we cannot say for certain.
However, as you can see from the juxtaposition of the charts above, it seems like $BTC reacted with this Yuan move in lockstep to the upside. Signaling, to me at least, that Bitcoin is acting as a safe haven for investors watching this particular cross. Bitcoin acting as a safe haven is something that we’ve been speculating for quite some time in this rag and on other platforms. It’s crazy to see people who once claimed that Bitcoin was a mania destined to blow up in everyone’s face now agreeing that Bitcoin is very uniquely positioned to serve as a legit macro play.
In a world that seems to be backed into a corner as overall debt levels rise to astronomical levels, as the amount of negative yielding debt floating around tops $14 TRILLION, and as geopolitical tensions between superpowers reach points not seen since the Cold War; Bitcoin chugs along in its own corner of the universe. Giving investors an apolitical tool through which to store value. A tool that cannot be corrupted or co-opted by any one faction engaging in the centuries long battle for dominance in meatspace. A tool that operates on its own playing field. A field that is very hard to map out and exploit. A relatively untapped digital playing field that many do not realize is going to drastically change the way these centuries long battles for dominance play out in meatspace.
Bitcoin, the perfect safe haven for the Digital Age.
Nothing like a morning without WiFi. Can humble any man. Especially if it forces them to write a newsletter from their cellphone.
Enjoy your weekend, freaks