Edwin Starr said the best thing: War is not good for anything. Recently, talks of war have affected crypto in a major way – an invisible string connects the two and we will take a look at how war could impact crypto prices, and the bigger picture impacts at hand.
Similar Read more| Bitcoin Offers Bullish Clues. But Will The FED Meeting Be In The Way?
The crypto industry has experienced a turbulent ride in 2022. For major players, such as Ethereum and Bitcoin, the first quarter was volatile. The cryptocurrency market cap fell by $205 billion in 24 hours from January to February. Major market indices fell as well, although they were still in the corrective zone at that time. This isn’t a first, nor will it be the last until things stable out – what is especially interesting is the price impacts from the war has been brewing between Russia the Ukraine, particularly considering that both the US and Russia have been considered head runners in being the top crypto mining places in the world, following China’s mining departure within the past year.
Indeed, much of this turbulence has continued since the first quarter as we approach the midpoint of Q2 2022 – though how much of this can be credited to international disputes is certainly up for debate.
Tradingview.com has a chart of Bitcoins.Tradingview.com - BTC:USD | BTC:USD via tradingview.com
Conflicts that lead to war have economically, historically, been considered as ‘economy boosters,’ and for many are perceived as a good sign for the bears as the focus shifts to the issue at hand, and away from more speculative investments; as many buy or sell at much higher rates then usual, this could lead to many buying at low value and holding until everything plays out and the world chills out. While crypto took a hit, some can say its due to many sanctions – but also war helping effort. Also, NFTs and crypto have been used to augment wartime efforts. This has increased the positive impact crypto can make on international conflicts.
Furthermore, people in Ukraine are turning to crypto as an alternative to Ukrainian financial institutions, which are limiting people’s access to bank accounts and foreign currency. In a recent interview, Alex Gladstein, chief strategy officer at the Human Rights Foundation said that “the fact that it can’t be frozen, the fact that it can’t be censored, and the fact that it can be used without ID is very, very important,” and added that “they are why bitcoin is such an important humanitarian tool.”
Invisible Strings Bind It All
The conflict is showing us all how fast economics can change, and the dramatic shifts that power of any countries’ dollar in how it can become diluted in short time. Many countries may consider using crypto, or, at the very least, digital currency issued by their governments. Crypto can be used to send and transfer money, as well as provide a new web-based system. As inflation fears rise, crypto could be poised to become an economic engine that can last.
Similar Reading TA – Technical Indicators of Price: Breaks Below $37K