With recent swings and changes in the economic world more and more people have resorted to Bitcoin and cryptocurrency around the world as they believe that Bitcoin provides a new level of financial security. According to these investors that due to the potential war breaking out between the United States and North Korea, the stock markets are unstable. All the world events happening has a tremendous impact on the market, making normal commodities such as gold and oil to be a risky investment where Bitcoin is barely influenced by these events.

For years people have resorted to gold and silver as a way to invest their money in a safe way. This was the most efficient way to guard your finances against events that can target the economic market. With Bitcoin being basically immune to political or other market influences, investors are switching from minerals such as gold and silver over to Bitcoin as they believe strongly that Bitcoin offers more stability and financial security.

However, according to Tom Price, a volume trading strategist at Morgan Stanley, Bitcoin isn’t the right investment direction. Tom states: “Bitcoin has still not proven itself to be a viable safe haven for investor assets. As reported by The Australian, Price says that while bitcoin has advantages over gold as a medium of exchange–it is exponentially more divisible and portable, for instance–cryptocurrency is still too immature to serve as an inflation hedge. Even if bitcoin does prove successful over time, he warns that this success will inspire the development of even more competitor cryptocurrencies, preventing the bitcoin price from achieving stability.”

Even with Tom Price statement, the number of traders moving to Bitcoin keeps increasing thanks to one compelling argument. Bitcoin is a type of cryptocurrency that has no government backing what so ever. All though people use Bitcoin to buy and sell products and services just as they use normal currency, Bitcoin is still completely different. This is because Bitcoin has not yet been declared a legal tender in any country. Meaning that Bitcoin can’t be affected by inflation. Although Bitcoin can lose value, it can never be manufactured or counterfeit. This is one reason as to why the majority of people see Bitcoin more of an investment as a form of currency.

The demand for Bitcoin is increasing but the supply is still limited making the value for Bitcoin incredibly high. As a result of this level that Bitcoin holds in the “supply and demand” chain, Bitcoin is immune to inflation or hyperinflation, declaring that Bitcoin is, in fact, a hedge against hyperinflation. The question is that will it be a hedge in the future? It’s certain that Bitcoin competitors such as Litecoin cryptocurrency will surface in the near future, making the supply for Bitcoin also just as high as the demand.

Presently Bitcoin is a hedge against inflation and hyperinflation, but if it will remain as such is the question. If Bitcoin becomes affected by inflation it would be due to competitors or Bitcoin’s legal status changing in some countries.