Since Bitcoin (BTC) came into being, the narrative surrounding the asset’s value proposition has varied drastically. At first, the cryptocurrency was seemingly pure, digital cash. Now, BTC has been deemed a digital gold by many pundits, who claim that the asset’s non-inflationary, borderless, and fungible nature makes it reminiscent of the precious metal.

However, throughout the handful of civil war-esque debates on the subject matter, many investors have claimed that Bitcoin is rapidly becoming the next global reserve asset. Yet, one industry commentator claims that the crypto industry’s de-facto king isn’t ready for such a title, in spite of fundamental developments.

Bitcoin Still A “Risk-On” Asset

In a recent Twitter thread, Dan Zuller, a partner at Vision Hill Advisors, a “cryptoasset & blockchain focused fund of funds,” expressed his thoughts on the rationale that Bitcoin could likely pick up steam in universal, dismal recessions. The former Citi employee claimed that as it stands, “digital assets are still ‘risk-on’ assets,” and could thus be more susceptible to “contagion,” especially in a macro bear-induced market winter.

1/ Sharing some thoughts on what happens to #crypto & digital assets during the next economic downturn. Some think digital assets are still “risk-on” assets & thus expectedly carry the risk of contagion (w/ higher correlations) in a global macro bear market. — Dan Zuller (@danzuller) January 24, 2019

Zuller, rebutting Fred Wilson’s recently-released 2019 theses blog post, noted that the fintech economy, which includes cryptocurrencies, will not be immune to a market downturn.

Backing his claim that BTC likely won’t hold up in an equities market collapse, Zuller explained that historical downturns have affected public stock markets, Silicon Valley stocks especially, due to the high beta values and ability to facilitate volatile trade. And with this in mind, the investor added that this is likely to be the same with cryptocurrencies.

Yet, he did go on to note that Bitcoin (and potentially Ethereum too) is evolving, and well on its way to becoming a global reserve asset. But, he remarked that he would be remiss not to note that BTC’s eventual hegemony in that area of finance won’t be established for “multiple macro cycles,” as cryptocurrencies still need to prove their “monetization and economic independence.”

Interestingly, this is contradictory to sentiment touted by Travis Kling of Los Angeles-based Ikigai, who once took to Twitter to claim that as the U.S. Federal Reserve begins to ease, well, Quantitative Easing (QE), crypto could outperform any other asset in existence during fiscal 2019.

Great Hedge Against “Inflationary Recession”

Ryan Selkis, the chief executive of Messari, a leading crypto data aggregator and content portal, recently touched on Bitcoin’s potential upside as a hedge against “inflationary recession.” In other words, Selkis claimed that BTC is a digital Store of Value (SoV), and will garner traction in the next financial meltdown, which he predicted is right around the corner.

Per previous reports from NewsBTC, the industry insider, who came under fire due to his firm’s exposé on XRP, noted that investors will “flock” to stores of value, like a digital gold, in trying times. As it stands, the digital embodiment of gold is best represented by Bitcoin, and as such, BTC would likely see an influx of buying pressure once consumers lose faith in traditional markets.

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