Signature Bank is again in the news a week after the New York State Department of Financial Services (NYDFS) shut down the bank in order to prevent a domino effect from Silicon Valley Bank's implosion last March 9.

The NYDFS initially shut down the bank as part of a preventive measure in order to protect depositors and ensure that customers get their deposits back. The next step was the United States Federal Deposit Insurance Corporation (FDIC) announcement yesterday March 19 that Signature Bank's deposits and loans will be taken over by Michigan-based Flagstar Bank. The agreement will see $38.4 billion worth of deposits and $12.9 billion in loans taken over by Flagstar.

This seems to be part of a bigger plan to combat the banking crisis that seems to be looming over the United States and prevent its further escalation. It might be recalled that a recent economic analysis on the Silicon Valley Bank (SVB) collapse said that as much as 186 banks in the US are at risk of insolvency. The Federal Reserve then announced a swap line network with the central banks of Japan, England, Canada, Switzerland, as well as the European Central Bank. How this all might unfold is still up for speculation. SVB's collapse caused a ripple effect in the crypto industry, while in the traditional financial sector, this effect was most notable in Switzerland, with the impact felt on Credit Suisse.

As for whether cryptocurrency deposits will be affected, the FDIC has clarified that the deal does not include Signature's digital asset deposits. Previously, the agency has also stated that the decision for Signature's closure was not in any way related to cryptocurrency. But it should be noted that Signature, as well as SVB and Silvergate were among the top banks providing services to the crypto sector. Whatever the FDIC's motives are for Signature's closure and whether it will eventually include crypto deposits or not, the whole debacle just might point to a more optimistic view of cryptocurrency as an alternative to the traditional banking system, helmed as it is by the United States.

The relationship between banking regulation and crypto firms has been a subject of contention for some time now. Fiduciary policies have often been at odds with the decentralization and freedom that cryptocurrencies promise. While many crypto firms have sought to distance themselves from traditional banks, others have increasingly embraced banking services, leading to accusations of a "sellout" within the crypto community.

Historically, there has been an antagonistic relationship between crypto and banks, dating back to the inception of Bitcoin. Satoshi Nakamoto, the pseudonymous creator of Bitcoin, inscribed a message on the genesis block, referencing the UK Chancellor's bailout for banks: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."

This message itself underscores the distrust of centralized financial institutions and the need for a decentralized alternative. As more crypto firms partner with banks or even become part of the banking system themselves, there is a growing concern that the original vision of cryptocurrencies is being compromised. By aligning with banks, these firms risk undermining the very principles that made cryptocurrencies attractive in the first place: decentralization, financial autonomy, and resistance to censorship.

On the other hand, proponents of these partnerships argue that the integration of crypto services into the traditional financial sector is necessary for mass adoption and mainstream acceptance. They maintain that a balance can be struck between the regulatory demands of banking authorities and the unique features of cryptocurrencies.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. Opinions stated herein are solely of the author's, and hence do not represent or reflect CryptoDaily's position on the matter. The author has no stakes in any of the digital assets and securities mentioned, and does not have any significant hold of own any cryptocurrency or token discussed.

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Flagstar to Take Over Signature Bank's Deposits - Crypto Daily

The collapse of Silicon Valley Bank (SVB) last week raises serious issues far more significant than the obvious ones cited by the financial press and a broad range of Washington politicians.

Chief among these are bank loans against dubious assets. That's not getting much if any attention in the news or from Washington and is likely to soon be swept under the rug, allowing needlessly risky banking practices to continue.

Before its collapse last week, SVB made loans against Bitcoin and other cryptocurrencies.

The question: why is any bank anywhere allowed to accept crypto as collateral for loans?

Bitcoin and its imitators are not money. They are not currency. They're hardly used to buy and sell, an unsurprising fact given that by design the Bitcoin system canprocess only seven transactions per secondcompared to many thousands of transactions per second for credit cards.

Indeed, except for laundering proceeds from drug trafficking as well as hiding assets from creditors, estranged spouses, and the tax police, cryptocurrencies have no use.

High-tech Ponzi Scheme

Cryptocurrencies and their cousins, Non-Fungible Tokens or NFTsare just a high-tech Ponzi scheme. Instead ofCharlie PonziorBernie Madoffpersonally running the con, the crypto scam relies on decentralized computer blockchain and "mining" of mathematical solutions.

Bitcoin's supposed inventor, who went by the pseudonym Satoshi Nakamoto, hasnever been identified. He or she has since vanished, leaving holders with a digital string worth only as much as the next fool, or crook, will pay for this imaginary asset.

Early participants in Ponzi schemes profit mightily if they cash out while the gullible souls who get sucked in later wipe out. That is what happened to SVB, America's 16thlargest bank, which was big on crypto loans.

Many Bitcoin "investors" have already been wiped out as the "market cap" of Bitcoin plummeted from nearly $1.3 trillion in 2021 to about $389 billion on Friday,down almost 70%.

Why do banking regulators allow our federally insured and regulated banks to make loans using magic internet money as collateral? That's a crazy policy, no different than allowing banks to accept buckets of ice cubes in winter as collateral, even though they melt come spring and evaporate in summer

Silicon Valley Bank is just one of many federally insured financial institutions that accept crypto currency as collateral for loans. Some banks will loan you 90% of the seemingly value of your crypto, though 50% loan-to-value is more common and that appears to be the standard at SVB based on its web pages.

Zero Interest Crypto Loans

All sorts of financial news outlets offer advice on borrowing against crypto. These includeNerdWallet, and the increasingly nave and unreliableForbes.People with crypto can evenborrow at zero interest. Gadzooks!

For a sober look at the big risks of crypto loans readInvestopedia's essay.

In the wake of the second largest bank failure in history, you should be deeply concerned that for more than four decades we have failed miserably at regulating banks. That history contrasts with the period from 1935 until voters abandoned the moderating and successful New Deal banking rules in favor ofReaganomics.

We took a wrong turn when theprudent New Deal banking regulationsin effect from 1935 were killed by Reaganomics, which re-regulated banks to reduce regulations and increase the risk of financial institutions failing. (There is no such thing asderegulation, only new regulation, which in our time on terms typically means regulations favoring corporations, including banks, over customers, financial prudence, and public safety.)

Congress's Role

What we need now are Congressional hearings to examine the reasons that cryptocurrencies can be collateral for bank loans.

Contactthe White Housein writing via the hypertext link or call 202-456-1111 to demand a ban on crypto as loan collateral. Call 202-456-1111.

Even if you don't own Bitcoin or its growing list of alternatives this story matters to you for multiple reasons.

Your money is only insured up to $250,000. Any money above that isn't insured. That means if you're a trustee of a nonprofit, for example, and it's got $1 million in the bank you or the organization you help lead is at risk of being wiped out in a bank failure.

The federal government is covering all deposits for SVB and atSignature Bank in New York, which failed Sunday. But that doesn't mean it always will. During an earlier banking crisis nonprofits with more than the guarantee then in effect of $100,000 lost their deposits above that sum, which got very little news coverage at the time.

If people want to buy crypto, they should be free to do so. But they should not be allowed to put our bank deposits and investments at risk by using these digital tokens as collateral for loans. After all, it's your, and my bank deposits, along with those of businesses, nonprofits, and our governments that the banks use to make loans, so it's not like we don't have a deep interest in blocking crypto of any kind as collateral for loans.

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How Bitcoin and other magic internet money loans endanger your ... - Salon

Bitcoin created its business late in 2019 with its automatic networking on the internet with the introduction of blockchain technology. Satoshi Nakamoto decided to engage with the investors by identifying the markets needs.

The digital currency-oriented unit is stored in the blocks of Technology for the ordinary individual who struggles to visit the banks. The option of cryptocurrency needed to be prepared for the affluent investors who can significantly profit from the currency.

Bitcoin was more of a comfortable unit that entered the market to provide more significant assistance to thousands of middle individuals. Immediate Edge the unit is sufficient to make their astonishing journey in digital money seamless.

However, today the currency is more known for having a balanced reform in the market. It is a functional unit purchased and exchanged due to its repetition. The continuous investment allows the other investors to focus on the unit and the currency from the safe digital platform.

The units storage is quickly done with 200 percent of the authentication, providing a perfect mixture of storage and supply. In the central time, some people want to know about the original way and ideology for a solid investment.

Cryptocurrency becomes a part no for an extended period if purchased from a platform that provides investment benefits and a safe opportunity to sell the currency in the future.

A few interesting points require a knowledgeable understanding to minimize the risk and buy the currency. The manual classification is vast, but the digital comes out as an alternative with a better way to turn the bright table and provide sufficient funding.

The Paramount advantage of having a risk-free investment is the easy storage and Purchase. A currency that is associated with the digital wallet of any user requires exploration of different options.

Usually, only some individuals have the details about the investment and the strategies data reformed. The essential part of cryptocurrency depends on how the investor looks toward the effectiveness of the Purchase of the unit.

Therefore, knowing about every part of the unit and the stages to build successful steps helps generate belief in the profits. The digital coin protects the individual from Bureaucracy and provides the entire ecosystem with protection.

Another affected part of the Purchase or trade of cryptocurrency is the availability of the exchange, which is a wise option for beginners. The unit is a resource for many people, and reputable companies work as an agency for the investors to provide security and measures to diffuse all the barriers.

The critical system of cryptocurrency depends on the percentage of investment the investor makes. Typically, people buy the unit from an online exchange, which is a more comfortable option for networking.

However, the exchange reputation and the rates are essential because they can increase the expense and make the entire cost of the digital Purchase expensive.

Another point that requires attention for the investor is knowing about the wallets available for the exchange in integration with digital security.

Money becomes a part of individual life when it is floated in the most comfortable place and available in a seamless wallet to utilize anywhere. Bitcoin wallet is available online and offline, connecting users as per their requirements to the internet.

Another essential thing that comes to every individuals mind before the Purchase is the amount to be transferred from one account to another to buy the unit.

The currency becomes part of your digital wallet by reading the currency and providing the bank details to the online support system. The units ownership is granted once the amount is deposited and the landing company receives the notification.

Once all the steps are prepared in the proper process, it becomes easier for the investor to become the owner of an actual unit with value in the market. Bitcoin marketing depends upon the individuals profile; people usually can afford the minor risk.

The main goal of each digital purchaser should depend upon their available funds and efficiency in the forecast of the future in cryptocurrency. Apart from this, there is nothing the individual has to worry about in digital currency.

Please note that this website does not give financial advice. This contributed article is offered for information purposes only.

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Effective Methods to Buy and Trade Bitcoin - Robotics and Automation News

Cryptocurrencies have taken the world by storm, disrupting traditional financial systems and providing a new way to transact value.

The idea of a decentralized digital currency that could bypass financial institutions and enable people to send and receive payments without the need for a middleman was revolutionary.

It promised a future where individuals had control over their financial transactions, free from the constraints of government and central banks. However, despite the potential of cryptocurrencies, it took a few years before they gained mainstream acceptance.

That all changed on May 22, 2010, when a programmer named Laszlo Hanyecz made a bold offer on a Bitcoin forum. He said he would pay 10,000 Bitcoins to anyone who would order him two pizzas from Papa Johns.

Yes, you heard that right!

10,000 Bitcoins, which today is worth over 700 million dollars.

Join us as we delve into the story of Bitcoin Pizza Day and its significance in the world of cryptocurrency.

To understand the significance of Bitcoin Pizza Day, lets first take a closer look at Bitcoin itself.

Bitcoin is a decentralized digital currency that allows for secure and peer-to-peer transactions without intermediaries like banks. It was created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto.

One of the key features of Bitcoin is that it operates on a blockchain, which is a public ledger that records all transactions in the network. Each transaction is verified by a network of users who use complex algorithms to solve mathematical problems, and once verified, it is added to the blockchain, making it immutable.

Bitcoin was primarily used by tech enthusiasts and libertarians who embraced the idea of a currency that was not subject to government or central bank control.

However, it wasnt until May 22, 2010, that Bitcoin gained its first real-world use case when a programmer named Laszlo Hanyecz made a bold offer on a Bitcoin forum.

Getting back to the story of Bitcoin pizza day, in 2009, the first successful Bitcoin transaction was done, which was 10 Bitcoin transfers to Hal Finney from the account of the pseudonym Satoshi Nakamoto.

A computer programmer named Laszlo Hanyecz from Florida decided to put Satoshis creation to the test. He wanted to see if it could be used as a real mode of payment, just like any other currency.

And he figured, why not try to buy a pizza with it?

On May 18, Hanyecz posted on the Bitcointalk.org forum expressing his interest in utilizing bitcoin to purchase pizza. To anyone who was prepared to place an order, pick them up, and deliver them to him,

And he was happy to find someone willing to trade their pizzas for 10,000 BTC. Somebody made the observation that he may sell the bitcoins for $41 on a particular exchange website, where BTC was valued at less than 0.5 cents per coin.

On May 21, Luckily, someone accepted his offer the following day, a decision that would subsequently be remembered in history.

Laszlo responded to the delivery on BitcoinTalk.org by saying, That pizza looks delicious!

I would like to inform you that, I was able to exchange 10,000 bitcoins for two pizzas, worth $40. The pizzas were prepared by Papa Johns, but Hanyecz purchased them secondly from Jeremy Sturdivant, who was 19 years old.

On the same thread, he stated, My 1-year-old daughter really enjoys pizza too! She just smears it all over her face if you give her a whole slice, but she does eventually manage to get most of it in her mouth. Laszlo took a family photo after the delivery marking one of the biggest milestones in the Bitcoin story.

At the time, 10,000 Bitcoins were worth around 40 dollars.

But Hanyecz could have profited about $690 million if he had sold all of his bitcoins at their all-time high price of $68,990, which would have bought 46 million large Papa Johns pizzas at a price of $15 each.

The incredible growth in Bitcoins value showcases its potential and the blockchain technology it is built upon.

Well, Now the question arises how did Laszlo Hanyecz make 10K Bitcoins?

Lets unfold the layers.

In the early days of Bitcoin, a group of pioneering miners worked tirelessly to extract new coins from the network. Among them was a man named Laszlo, who had been mining for an entire year before making history with a single transaction.

For creating a new block, every successful miner received 50 BTC prior to the first bitcoin halving in 2012

This means that in order to earn 10,000 BTC, one just needed to mine 200 blocks, which wasnt too challenging given that there werent enough people trying to generate them at the time.

But this isnt just a story about the rise of innovative technology and a landmark in the financial world, its a story about the power of community, the potential of a new economy, and the limitless possibilities of the future.

However, Bitcoin Pizza Day also highlights the volatility and unpredictability of cryptocurrencies. The fact that 10,000 Bitcoins were worth only $41 in 2010 and millions of dollars today is a testament to how quickly the value of cryptocurrencies can rise and fall.

It also serves as a cautionary tale for those who see cryptocurrencies as a get-rich-quick scheme.

Bitcoin Pizza Day is a significant event in the history of cryptocurrencies that should be celebrated by all crypto enthusiasts. It marks the beginning of a new era, where cryptocurrencies could be used for real-world transactions, and not just as a speculative investment vehicle.

However, it also serves as a reminder of the volatility and unpredictability of cryptocurrencies, and the importance of caution when investing in them.

So, next time you order a pizza, remember the story of Laszlo Hanyecz, and how a simple craving for pizza led to a significant moment in the history of cryptocurrency.

And also think about, would you have made the same decision if you were in Hanyeczs shoes?

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The Million-Dollar Pizza: An Interesting Story of Bitcoin Pizza Day - Coinpedia Fintech News

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Bitcoin has become the most well-known currency around the globe as the popularity of Bitcoin has inspired many other developers to develop cryptocurrencies just like Bitcoin. None of them got as high as Bitcoin has become the largest market capitalization cryptocurrency in the world. It is nothing more than a form of currency that does not have any control over the government. The transactions of Bitcoin are recorded on an independent and decentralized base known as the blockchain. All the monetary transactions of Bitcoin are recorded and stored on the blockchain network, and it also provides security to transactions through cryptographic nodes. The currency was introduced in 2009, and whoever created Bitcoin is still anonymous. A name added by other cryptocurrency developers is satoshi nakamoto. But later, he left the project in between, and some of the other developers developed Bitcoin and introduced it to the public interest. In addition, if you are looking for a reliable trading platform, you can visit BITCOINPRIME.SOFTWARE.

Bitcoin attracts many new investors and traders to join the virtual market due to its uncertain hype and regular volatile prices. You cannot predict Bitcoin prices because it is highly flammable and not regulated by any regulatory authority. The absence of government authority makes Bitcoin transactions reliable, cost-efficient, time efficient, transparent and secure as the cases of cyber hacks and frauds are regularly coming to news headlines through centralized means. But till the present time, we do not have any complaints about Bitcoin fraud or cyber hacks. Bitcoin provides security that any traditional financial institutional security system cannot challenge. Bitcoin offers several advantages if it is accepted as a medium of exchange by businesses and companies. It will take time for Bitcoin to become legal tender as the currency is still new to the market.

The top attraction of Bitcoin

Privacy

You can use Bitcoin to transfer funds anonymously from one source to another without involving intermediaries or government bodies in monetary affairs. All the Bitcoin honors are provided with multiple public keys, usually the address of the Bitcoin wallet and the information needed to execute transactions to transfer Bitcoin from one account to another. Unlike credit and debit cards, they do not require complete information about the wallet owners common name, billing and address, which means they do not need any personal information about the wallet holder to transfer funds. The only thing required to receive payments from Bitcoin is a wallet address.

Decentralization

Due to Bitcoins decentralized nature, it does not allow the government to interfere in its monetary affairs. Also, some of us prefer to avoid 3rd party interference in economic matters to transfer funds from one server to another. Also, this is an excellent choice for people who are against the system and looking forward to extra privacy. In traditional payment systems, there is always a chance of information hacks and fraud due to the presence of financial records with banks and exchanges. Also, fraudulent transactions can occur with the name of traditional trades and institutions. However, Bitcoin is a decentralized body and does not allow this kind of fraudulent transaction to take place with the help of blockchain technology.

Bitcoin value

As we all know, Bitcoin has gained hype in the last few years and is continuously gaining advertising with increasing prices. Bitcoin can be chosen over other currencies as the best or excellent store of value. There is no government rule that you cannot convert Bitcoin into something different than feet currencies. There is complete control of your Bitcoin holdings in your hand.

Low transaction fees

Whether you are investing or using Bitcoin to make and receive payments, the transaction fees of Bitcoin transfers are relatively lower than a traditional transfer. And one of the biggest problems with centralized transfers is that it takes too long to transfer funds. Using Bitcoin can help you to transfer funds in around 10 minutes which is a relatively low time. The use of Bitcoin by small-scale businesses is beneficial because they pay high fees for minimum transfers. And this leads to an increase in companies costs of up to 10%.

Security

You cannot question Bitcoin security as it uses peer-to-peer transactions, meaning no 3rd parties are involved in completing payment transfers. Only the parties involved in payments are the receiver and payment maker. Every transaction of Bitcoin is recorded on an open distributed Ledger system known as blockchain with the security of cryptographic Nodes Once the transaction is recorded on a blockchain network, the transaction cannot be altered or changed manually without private keys.

Conclusion

These are some of the top attractions of Bitcoin that lures people to invest money in Bitcoin. Also, Bitcoin has high price volatility, which gives you the opportunity to earn maximum profit out of volatility. It is possible to make maximum profit in intraday trading without holding Bitcoin overnight. On the other hand, you must be aware of Bitcoins other drawbacks, like the prices can show a bearish trend, and within a few minutes, it concerns a bullish market. Get the required knowledge before investing your money in Bitcoin and other cryptocurrencies, as it can save you from bearing losses and maximize your profit on your investments.

This post was published on March 15, 2023 7:25 pm

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What is the attraction about Bitcoin? - Star of Mysore

Bitcoin (BTC 0.68%) has been a hot topic in the financial world for years, with opinions about the cryptocurrency running the gamut from a "revolutionary new asset class" to a "dangerous speculative bubble." One thing that most experts can agree on, however, is that its volatility has historically made it a less-than-ideal safe-haven asset. But recent market movements seemed to have changed that tune. There are fewer sad trombones and more sparkly vibraphone grooves in the Bitcoin canticle nowadays.

But is the cryptocurrency really ready to serve as a long-term vault for your hard-earned wealth? Let's look closer at Bitcoin's suitability for that august role in light of recent data and expert analyses.

Bitcoin has been on a tear since the beginning of 2023, rising 45% since the start of the year. On the other hand, the S&P 500 (^GSPC 1.41%) index is up by a mere 0.8% over the same period, and gold has gained 2.6%.

Zooming out to a three-year view, you'll find that Bitcoin has outperformed the traditional safe havens of gold and broad stock market indexes again. This time, gold is up by 19%. The S&P 500's dividend-adjusted total return stops at 49%. Over the same span, Bitcoin soared 367% higher.

And if you allow me to go back six years instead, incorporating the surge of 2017 and the 2018 crypto winter into the data, we can see how a $10,000 investment in Bitcoin has performed against gold and the S&P 500 since the spring of 2017:

Bitcoin Price data by YCharts

Of course, past performance is not a reliable indicator of future results. Bitcoin is notoriously volatile, and its value could plummet just as quickly as it has risen. The chart above, impressive as it is, also shows many dramatic price drops over the years.

But it seems that Bitcoin has finally established itself as a contender in the category of safe-haven assets. As investors seek out alternatives to traditional value stores, like precious metals or diverse stock market indexes, Bitcoin's unique characteristics and limited supply could make it an attractive option for those looking to protect their wealth against inflation and currency fluctuations.

And that's right in line with the original intentions of Satoshi Nakamoto, Bitcoin's unknown inventor (or group of inventors). The cryptocurrency was designed to resist inflation through a lifetime maximum of 21 million digital coins, and 19.3 million of them are already minted. This capped long-term supply is similar to the limited amount of gold on the planet, which is why Bitcoin bulls often refer to it as "digital gold."

Despite its volatility, some market experts believe that Bitcoin could continue to serve as a safe-haven asset in the future. Beyond the gold-like supply-and-demand equation, some Bitcoin gurus point to the growing interest from institutional investors and large corporations. As a result, the cryptocurrency may be becoming more mainstream and accepted as a legitimate asset class.

In fact, companies like Tesla (TSLA 2.39%) and Block (SQ 1.54%) have even added Bitcoin to their balance sheets, further signaling their confidence in the cryptocurrency. Taking that idea to its next logical step, business software builder MicroStrategy (MSTR 5.01%) has converted most of its cash reserves into Bitcoin -- and keeps buying more coins financed by a combination of cash flows, loans, and stock sales.

deVere Group CEO Nigel Green calls the current banking crisis a "springboard event" for Bitcoin as traditional-minded investors start to treat the digital asset as a safe port in the storm. The financial shake-up may inspire others to follow in the steps of Tesla, Block, and MicroStrategy. Massive long-term inflation of the U.S. dollar is a critical part of this scenario: "Investors are therefore looking for alternative currencies, such as cryptocurrencies," Green writes in a recent press release. "Moving forward, these will increasingly compete with traditional, fiat ones, and this will help trigger the decreasing dominance of currently leading international currencies."

Nobody knows for sure where Bitcoin is going next. The crypto winter may be thawing as we speak, or another cold snap could bring Bitcoin prices down again in 2023.

But I think it's abundantly clear by now that cryptocurrencies are here to stay, and that Bitcoin will probably be a reliable store of wealth for many years. MicroStrategy chairman Michael Saylor may be onto something after all. Truly committed Bitcoin bulls with diamond hands should see stellar results a few years down the road.

That being said, I still don't want to convert my entire net worth into Bitcoin and take out loans to buy more. Leave that to the professional risk-takers for now. Instead, I'm happy with a modest Bitcoin position that could serve me well in the long run without adding much short-term risk. It's a good place to park cash you won't need for at least a year or two, allowing Bitcoin to get over speed bumps and challenges on the road to sustained wealth. In fact, that's how I think about all investments. Saintly patience is arguably the best quality an investor could have. Just ask Warren Buffett or Peter Lynch.

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Is Bitcoin a Safe-Haven Asset Now? Recent Data and Market ... - The Motley Fool