Bitcoin isn't ready for the big leagues yet. That's the word from Nik Bhatia, founder of The Bitcoin Layer.
In a CNBC interview, Bhatia dropped a truth bomb. He reckons the 15-year-old cryptocurrency is still too green to be a safe haven asset.
Why? Bitcoin's short history makes it look risky. It's not your grandpa's gold, that's for sure.
Bhatia, who penned "Layered Money," points out Bitcoin often mimics the stock market. When stocks go up, so does Bitcoin. When they tank, Bitcoin follows suit.
But here's the kicker: sometimes Bitcoin goes rogue. It's shown significant growth during these maverick periods.
These episodes hint at Bitcoin's potential as a hedge against crazy monetary policies. Bhatia sees Bitcoin gunning for safe haven status.
"Bitcoin is a young asset," Bhatia explains. "It still mostly trades like a risk-on asset. That's why you see it crater alongside global stocks this week."
Speaking of craters, Bitcoin took a nosedive on Monday. It tumbled over 10%, mirroring the broader market slump. Ouch.
Over the past week, the crypto darling has fallen 16%. That's gotta hurt.
But Bhatia's not throwing in the towel. He's still bullish on Bitcoin, citing the boatload of cash flowing into the crypto market.
"Bitcoin historically sees 25% to 50% drawdowns in bull markets," he notes. "I get it, though. For a lot of holders right now, it can feel pretty scary."
So, is Bitcoin ready to be your financial safety blanket? Not quite yet. But give the kid some time. It might just surprise us all.