Corona Outbreak Bolsters Safe Haven Assets
The last 12 months have seen a slew of fiat on-ramps bolted onto the cryptoconomy, as businesses that operate in the blockchain industry seek to onboard the masses. A shortfall of fiat rails led to long delays in getting funds into the cryptosphere during the last bitcoin rally in 2017. When the next one occurs, exchanges and wallet providers will be better prepared.
Gold has been reaching record highs, while stocks have plummeted as major companies have missed earning calls and lowered quarterly projections due to the decimation of China’s manufacturing heartland.
The stock market selloff has been bad news for Wall Street, but a boon for alternative assets that are less exposed to the whims of the capricious global economy. Gold and precious metals have been the greatest beneficiaries, but digital assets have also held appeal. Saga’s monetary model qualifies it as such an asset, thanks to its fiat reserve that serves as a stabilizing mechanism. Derived from a basket of fiat currencies, Saga is less vulnerable to global affairs that can weaken national currencies. SGA is designed to grow gradually, acquiring intrinsic value and eventually divesting itself of the fiat reserves that have been used to bootstrap it.
Author : Collin Brown