In the summertime of 2019, the 10-year minus Three-month yield curve inverted for the primary time in 13 years. In the course of the time of the inversion, Bitcoin’s worth hit all-time highs for the yr. The earlier inversion in 2006 was adopted shortly thereafter by the worldwide financial disaster of 2008.
On Jan. third 2020, United States President Donald Trump ordered the killing of Iranian normal Qassem Soleimani by drone strike. The Iranian authorities retaliated on Jan. eighth by launching missiles at two American bases in Iraq situated close to Baghdad.
All through the Iran-U.S. battle, Bitcoin’s worth spiked upward by 21%, from slightly below $7,000 to almost $eight,500.
The foreshadowing of one other international financial disaster and the specter of additional worldwide battle has given rise to an necessary query: is Bitcoin a protected haven asset?
To research this narrative, we sought the opinion of world-renowned economist Campbell Harvey, who’s finest identified for theorizing yield curve inversions as correct alerts of oncoming recessions. Harvey is now the J. Paul Sticht Professor of Worldwide Enterprise at Duke College, the place he has been educating a course on blockchain and cryptocurrencies for seven years. On this interview, he discusses whether or not “Bitcoin is a protected haven” within the context of each warfare and recession. He additionally particulars a imaginative and prescient of the long run wherein digital tokens might undermine the worldwide hegemony of the US Greenback.