The economics of war. How does this affect us all especially us in crypto?

[GbitG]

I start this thread because my other thread was moved to politics.

So we now have Israel vs Palestine

Of course, in the context of OP titles, economic wars affect the market for cryptocurrency, and I have proof of this in the current war between Israel and Hamas. (The cryptocurrency market has also been affected). And this is the main reason, thanks to which I believe, that the economic war also affects the cryptocurrency market. Obviously, the country that has been involved in cryptocurrency must sell its assets in its bad times to meet war reasons or basic needs, just like the selling pressure entered the market due to the war between Israel and Hamas, and the market went down by 2%. It is a small state, due to which some effect was seen; if it starts a war between big states, then its effect will also be big. And now, I think, due to the conflict between Israel and Hamas, there is a risk of the intrusion of a big country in between, and if the matter deteriorates in this way, then everything from the economy to the cryptocurrency market can be affected.

[1714781945]

1714781945

[el kaka22]

I can't speak about the politics or the war because it is a two sided thing and there will be a lot of people from both sides that will attack me if I pick one side. I do not want that, I do not care about your ideas, there is one thing I care about and that is death. This type of war or all wars basically, result in death and that is always unreasonable.

If there are people killing each other, then I do not care about ANY reason that you are giving, whichever side ends up killing someone is doing something wrong. I do not care who started it, all I care is who ends it and I want it to end. I want this one to end, I want Ukraine vs Russia to end, I want all wars and all killings to end in the world. Financially speaking this is beyond something we can calculate, it is just doesn't have a value attached to it, a human life can't worth anything put to fiat terms.

[Youngkhngdiddy]

More persons who are not yet investing in crypto will consider it more with all this crisis and them seeing how easily other physical assets can easily be destroyed and lost, and how safely one's assets can be with crypto especially bitcoins.

For us already in cryptocurrency, the entire situation of the crisis and how easily we understand that it can spread gives more reasons to want to invest more in this asset which is bitcoins.

We have seen cases of war having effect on the economy, one of the effect of war in the economy is inflation. The Russia and Ukraine war is a typical example. Because of the war, Russia no longer have aid they usually get from other countries. This will some how affect their economy one way or the other. War indirectly affects the world economy too it may seem like it not but it is, the money used in funding the war is governmental fund which can be used In other sectors of the economy. We saw a complete twist on Bitcoin going down when the Russia/Ukraine war started, war can have effect in the crypto space as well. War doesn’t benefit any sector of the society rather it brings heart breaks and loss of life and property.
  Currently we are seeing the dreadful event happening in Gaza, how lives and properties that took years to build are being destroyed in just a split second, War brings nothing but destruction. Same way it has physical effect on the economy, it can also affect the crypto space too, we have some whales in the crypto space who are secretly funding this war. And we know once a whale or two whales tries to sell, it’s affect the market also. This will cause the price of asset to reduce, which can affect you that’s knows nothing. This is why we need to be involve in listening to news and listening to financial experts. Bitcoin still a save place to save your asset though.

[KiaKia]

~

More persons who are not yet investing in crypto will consider it more with all this crisis and them seeing how easily other physical assets can easily be destroyed and lost, and how safely one's assets can be with crypto especially bitcoins.

For us already in cryptocurrency, the entire situation of the crisis and how easily we understand that it can spread gives more reasons to want to invest more in this asset which is bitcoins.

I guess you are doing the same thing too? I don't think this will encourage people to start investing, it will fool the masses into thinking that this is the end, many weak hands will sell and stay away from crypto, only smart people will see this war as an opportunity, just like how the covid virus played out, since I've learned my mistakes in the past, I now sees this as a buying opportunity, I am just been greedy when others are fearful.

I was honestly waiting for something like this to happen, I don't hope for war though but a black swan event? Yes of course, I will just keep dollar cost averaging into 2024 and probably take my rest after Bitcoin halving and two months after, I am doing all these based on what we've seen in the past with crypto.

There is this asset that I invested into since last year, and just because the CEO is from Israel the investors of the project are already in a panic mood, they are selling even while the project is very strong right now, one of the most talked about in the space now, yet people ate getting out, after doing my own research I see that the CEO isn't even in Israel but Massachusetts.

[romero121]

Being decentralised the market won't be much affected, even in this situation impact can be experienced as the bitcoin market is working with some sort of connection with the traditional system to some extent. One such thing happened with the Ukraine-Russia war, exclusion of Russian banks from the global Swift system. This restricted the cross border transactions and the usage of cryptocurrency increased and during those days more transactions and donations took place in terms of cryptocurrency. This marked the market to be bullish to some extent, further the regular pattern of growth took place. Even with the ongoing Israel-Palestine war cryptocurrency have come into discussion, as Israel authorities have frozen cryptocurrency accounts connected with the Hamas Military group with the support of Binance. This step have been taken to restrict the illicit usage of bitcoin. Hamas considered as a terrorist organisation looks for more opportunities as the traditional financial systems were tightened to support its activities.

[Darker45]

However, for somebody who is living in a bombed 20-story residential building in Gaza, it probably doesn't matter whether your money is in cash or in Bitcoin. If your building is reduced to rubble, will your seed phrase written on a tiny piece of paper survive?

I know that a digital copy stored online, even if encrypted, isn't recommended, but facing a terrible war, invasion, or bombardment, would it be wiser to keep a copy online?

Anyway, I think this conflict is much more about the shift in military gears or certain economic motives. This is basically about long-standing hatred.

I also hope and pray for peace, everywhere!

[YUriy1991]

I.E 10,000 cash in a home could be burnt. But my digital wealth is safe.

Yes. and It gives us the right to buy and own digital currency at a set price which can also be considered an investment option as well. which can increase in value either very quickly or slowly as the asset appreciates.

the war as political and think of the economic angles here.

The real world trading.

To all in Ukraine vs Russia I hope for peace.
To all in Israel vs Palestine I hope for peace.
To all in China vs Taiwan please keep the peace.

A good message from you and what is clear is that in the future there will be many riots in many places and it could be that 2024 is just the beginning, coupled with changes in natural conditions that are less friendly.

[kryptqnick]

Of course, it's hard for me as a Ukrainian to hear that the world is tired and bored with the war from which my country's suffering every day, and not that since it's a big country, the scale of this war is much-much bigger than the war of Israel against Palestine. In any case, I don't think the escalation happened 'cause the world got bored. If anything, I believe Hamas is controlled by Iran, and Iran is militarily friendly with Russia, so perhaps they've made some sort of deal to distract the world from Russia's activities by making people focus on how cruel Hamas can be.
The financial side of the op's post is reasonable, it's true that there's often a disproportionate interaction where a drone can take out something much more expensive, but also, looking at the Russian side here, a relatively cheap drone can trigger a much more expensive spending on an air defence missile on it. These things can make drones much more popular in the military in the future, but, to be honest, I don't think that has any impact on the crypto market or on the global economy in general.

[DrBeer]

everything that is happening in the world now is a consequence of the cowardice and softness of the West, and its attempts to flirt with terrorists....
I will not tell about all of them, I will tell only the situations of recent years. In 214, the world decided to "ignore" Russia's terrorist attack on Ukraine. Decided not to interfere... Why should Merkel, for example, break contracts with Gazprom that are favorable to her personally? The money is flowing, everything is good, so what if they destroy Ukrainians - in Germany it is calm and comfortable.
Not so long ago, Israel trumpeted that it is impossible to soften the terms of sanctions against Iran, especially with regard to weapons. The EU came out with the initiative "and let's believe them, so what if they don't let us control the fulfillment of Iran's commitments"....

Until 2022, Russia repeatedly and demonstratively brings the EU to its knees by threatening to stop gas and oil supplies.  Europe becomes an obedient sheep and dances to the tune of the Kremlin. In 2022 Russia is trying to simply DESTROY Ukraine. And already openly declares - "EU is next YOU !". And here Europe realizes that this is not just propaganda, this is the real PURPOSE. Having started to help Ukraine, the EU meets with economic (oil/gas) terror, which after COVID-19 is very painful and hits the EU economy very hard. But thanks to Merkel's resignation, adequate politicians came to power and the EU found the strength and capacity to adapt and rebuild. Russia shot itself in the foot. Realizing that the war is headed for defeat, Russia starts sabotaging gas markets - blowing up Nord Stream and recently the Balticconnector pipeline.
They also provoke a new conflict in the east by siccing their "terrorist brothers" on Israel. Do you seriously believe that Hezbollah could have prepared such an operation on its own? The goal is simple - to distract the world from the tragedy in Ukraine, to unleash a major war in the east, in order to destabilize the region and ... yes yes yes yes - the oil market, which Russia has lost, and no matter how hard it tried - lost profit.
There is an ancient axiom in the search for criminals - "Find out who benefits". And the economic terror will continue for a long time until international criminal regimes and their puppets are destroyed in one way or another.  Conclusion: we should prepare for a new period of destabilization of the world economy. But do not seek agreements with those who came to destroy you or break your habitual life and ECONOMY. It does not sound pleasant, but it is better to know the diagnosis of the disease and treat it than to engage in self-deception....

[Crypto Library]

In my personal point of view I will say that yes global war or economic war what ever you say I think  it does effect on all sectors also can in crypto.
I think the cryptocurrency world is definitely connected to the physical world in some way. So when these global conflicts start, I can say that their effects will somehow affect our global economy. And I think that's where the key lies when you look at the global recession that creates inflation. And it certainly has an effect on people's economic condition, so I think it has an effect on investing in cryptocurrencies as well.

[Yamane_Keto]

Sooner or later we will see developments in the industry sector such that drones may become worthless. I saw a design for the first anti-drones. It sprays a gelatinous substance that makes the drone stop. There are guided lasers and there are some modern technologies that make these new tools useless. Tracks and armor will remain valuable unless laser weapons or any rays capable of dismantling and destroying armor are invented easily, but the problem lies in the cost. If they are cheaper than drones, it will be devastating for this industry.

As for the economy, I still see what is happening in Gaza as limited, and if it does not turn into a global conflict, it will end within two months and we will return to the old war. Taiwan and China may have a war between them by 2030.

[lombok]

I.E 10,000 cash in a home could be burnt. But my digital wealth is safe.

Yes. and It gives us the right to buy and own digital currency at a set price which can also be considered an investment option as well. which can increase in value either very quickly or slowly as the asset appreciates.

For countries that are not affected by crypto assets, especially Bitcoin and gold, they are very suitable for investment. Maybe you could add shares in military drone companies. However, it feels a bit heavy hearted to mention this when there are people who have suffered as a result of war.

the war as political and think of the economic angles here.

The real world trading.

Real trading turns out to be more painful. An ongoing irony.

To all in Ukraine vs Russia I hope for peace.
To all in Israel vs Palestine I hope for peace.
To all in China vs Taiwan please keep the peace.

A good message from you and what is clear is that in the future there will be many riots in many places and it could be that 2024 is just the beginning, coupled with changes in natural conditions that are less friendly.

At least there is still hope from people that this situation will soon improve even though if you look at it logically this situation will continue to escalate. The economic crisis and natural destruction have encouraged some brains to go wild under the pretext of survival and maintaining self-respect, isn't this the same as cannibalism, killing to survive.

[Argoo]

I think the war economy will have no effect on crypto is not under anyone's control but will increase the demand for crypto. The wars also affected the interest rates charged by banks and other creditors to borrowers this is the result of war spending financed entirely by debt which has contributed to a higher ratio of national debt to gross domestic product and subsequent long term interest rate increases while fiat currencies suffer. Nowadays every people are very aware about bitcoin and they know the use of bitcoin which will help a lot to reduce the danger long term investment will yield better results.

Local wars certainly help increase demand for cryptocurrency. However, as the threat of them turning into a world war increases, the demand for cryptocurrency is likely to fall. After all, people will have the primary task of surviving in this situation, so first of all, clothing, food, shelter, everything that helps a person survive will be important. Any money in this situation will lose its value, and cryptocurrency as well.

[yudi09]

To all in Ukraine vs Russia I hope for peace.
To all in Israel vs Palestine I hope for peace.
To all in China vs Taiwan please keep the peace.

Stop the war.
Peace is the most effective way to make the world return to normal, solemn life without any divisions.
War requires a large budget to meet the necessary needs and post-war also requires a large budget to rebuild all damaged sectors. The most valuable thing that is difficult to recover beyond the economic impact is the psychological impact received as a result of war.

[stompix]

Seems like it was all a big scare and nothing on the size of the Ukraine invasion effects.

Oil went down, actually lower that it was before this whole shitshow, the only ones that are getting recked are Iranians as their currency went nuts:

now that Qatar has frozen those 6 billion they were supposed to finally get.

So probably if we exclude the humanitarian consequences of this nothing major in the economy will happen, China is quiet as it has its Uyghur problem, India just....common, we know how much they love Pakistan and Muslims, so most likely everyone will stay quiet while Israel turns the entire Gaza into Mariupol.

I.E 10,000 cash in a home could be burnt. But my digital wealth is safe.

That's if there is a fire you're away and the seed is not in the house, if a JDAM is dropping on you cash or trezor or whatever cold wallet you have it doesn't matter anymore. The whole thing is so damn complicated, you have 5% of your wealth in BTC safe but you lose 95% and maybe you lose a leg or a hand, at what point do you start thinking if it maybe was better for all to end it right there?
This whole shit is so depressing!

[philipma1957]

Of course, it's hard for me as a Ukrainian to hear that the world is tired and bored with the war from which my country's suffering every day, and not that since it's a big country, the scale of this war is much-much bigger than the war of Israel against Palestine. In any case, I don't think the escalation happened 'cause the world got bored. If anything, I believe Hamas is controlled by Iran, and Iran is militarily friendly with Russia, so perhaps they've made some sort of deal to distract the world from Russia's activities by making people focus on how cruel Hamas can be.
The financial side of the op's post is reasonable, it's true that there's often a disproportionate interaction where a drone can take out something much more expensive, but also, looking at the Russian side here, a relatively cheap drone can trigger a much more expensive spending on an air defence missile on it. These things can make drones much more popular in the military in the future, but, to be honest, I don't think that has any impact on the crypto market or on the global economy in general.

yeah you are in the line of fire.

I live in the NJ and NY area I have a few Ukrainian friendships and a few Russian Friendships.

It is a struggle for them as my Russian friends do not want to support the war but sre afraid of Putin and my Ukrainian friends have lost 😞 relatives.

We all know btc can let you move wealth out of one country so war does show that value. I remember the Ukraine was able to get a lot of funding via btc.

Now I am anti war across the board. My fear is stricter KYC and rules from the USA. They will say Hamas gets funds via crypto and we can’t freeze them like we froze Iran 🇮🇷 six billion.

I also fear snowball effect Ie China vs Taiwan.

Some good replies here as people in general do not want the destruction war brings.

[Unbunplease]

Local wars certainly help increase demand for cryptocurrency. However, as the threat of them turning into a world war increases, the demand for cryptocurrency is likely to fall. After all, people will have the primary task of surviving in this situation, so first of all, clothing, food, shelter, everything that helps a person survive will be important. Any money in this situation will lose its value, and cryptocurrency as well.

The problem with cryptocurrencies is the need for internet. In war, the internet is often restricted or cut off altogether. Therefore, paper money starts to be in high demand in this case, as it is impersonal and no internet is needed to transfer it. Of course, where to store paper money is a separate problem because of looters

[Hamza2424]

To all in Ukraine vs Russia I hope for peace.
To all in Israel vs Palestine I hope for peace.
To all in China vs Taiwan please keep the peace.

Kashmir is missing from the highlights .. Also we all want peace but according to the human physiological cycle it's not possible in any age, Still, I hope all will end with peace, Standing with the Peace Talks Solutions.
War's are not the solution but it's a dead end for every country.


In Israel vs Palestine, I hope for peace, currently, Palestinians are the ones who have been victims for along time.

[icalical]

I can't speak about the politics or the war because it is a two sided thing and there will be a lot of people from both sides that will attack me if I pick one side.

This is so true, we can't even condemn the war crimes that has been committed by their government or their military without being misunderstood as we support one side. I mean we can support the innocent civilians on both side, who are the real victim of the war.

~

Local wars certainly help increase demand for cryptocurrency. However, as the threat of them turning into a world war increases, the demand for cryptocurrency is likely to fall. After all, people will have the primary task of surviving in this situation, so first of all, clothing, food, shelter, everything that helps a person survive will be important. Any money in this situation will lose its value, and cryptocurrency as well.

I would tend to disagree, both Small Scale war or either World War will decrease demand in crypto, even small scale war will affect many people and those people wouldn't even slightly think about investment or crypto while they can't even get food, water or barely survive. War never has any good impact in any aspect society, politic or econom.

[gunhell16]

If there are wars like what is happening now in Russia vs. Ukraine and Israel vs. Hamas, I don't think we crypto enthusiasts will be affected much by this, except for the people who believe in crypto who are in the country of war itself.

People like that opportunity, and our crypto assets should be stored well, not only in hardware wallets but for USBs or sny cold wallets. Physical things can be damaged, but not digital assets like Bitcoin. The economy can also be affected, but not the digital assets we have. The recovery of the country may take a long time when the war ends.