The continuing global turmoil, such as the exacerbation of the conflict between Washington and Tehran, and the spread of the new Corona virus in China, contributed to the growth of cryptocurrencies. For these reasons and others, some experts today believe that Bitcoin (the most popular electronic currency) can perform an asset protection function, if it turns into a protective asset.

In a report published by the Russian site "News Re", writer Mikhail Ismayilov said that regulators around the world are still unable to determine what the cryptocurrency and its essence mean.
Some believe that cryptocurrencies are a real and complete force, others consider them merely a means of payment, while others think of them as a threat that exacerbates criminal activities around the world.
However, the rise and fall of the value of digital currencies has not only affected the minds of novice traders but also experienced players in the market.
preventive
The idea that Bitcoin plays the role of a protective asset is promoted primarily by those who trade in cryptocurrencies, but in reality, things do not work out like this, as for Bitcoin to do this job needs to regulate the status of the digital currency at the legislative level, and therefore all speculation Which flows in this direction seem unrealistic or biased, according to the writer.
The writer quoted Jan Art, an expert in the Financial Market Committee of the State Duma, that the talk about Bitcoin as a protective asset is just rumors aimed at promoting this cryptocurrency.
According to the author, the preventive asset has three basic characteristics, which are the necessity to be "traditional and familiar, recognized" by all the regulators in the world, in addition to the need for high liquidity.
In fact, for obvious reasons, cryptocurrencies do not have these properties yet, and it would be naive to wait for them to have them.


According to the author, digital currencies will not replace investment tools as much as they will replace payment methods (Getty Images)
Recognition
Perhaps the second characteristic, which will be recognized by the organizers, will be considered this year.
And the experience of Singapore and Switzerland - the writer adds - is particularly interesting, but the real motive for recognizing cryptocurrencies remains to ensure that these currencies are placed in the United States.
Additionally, security and respect for property rights are important to hedge assets. In this regard, cryptocurrencies are still very weak.
The writer also said, "I think that digital currencies in the end will not replace investment tools as much as they will replace means of payment, but this issue is still under discussion."
"Central banks around the world will look for consensus in one way or another, and they will ultimately reach a decision of partial ban," he said.
At the same time, the State Duma may adopt the first steps in the legal regulation of the crypto market this spring, especially since the cryptocurrency market is one of the most preferred areas at the moment.
Expectations
It is clear that Bitcoin will experience some volatility this year, and its value may depreciate, and the main volatility factor will be the circulation of information about the methods of regulating cryptocurrencies in different countries.
We believe that the cryptocurrency as a tool only interests speculators, professionals and enthusiasts, and not long-term investors.
As for as a means of payment - the writer says - the use of digital currencies will truly double, and this use will grow in large quantities even in the absence of legislation that regulates exchanges against cryptocurrencies.