In Case of Global Conflict, Is BTC The Best Alternative?

[Mauser]

Now, in the face of a global chaos, do you think holding on to Bitcoin is a good idea to protect our assets? Will it be acting like gold which can be so valuable during war?

This is a tricky question to answer, I do believe that bitcoin is a great protection for our money and assets. But I am not sure how well bitcoin would actually do during a global conflict. The main issue during global wars is that international trade would collapse. With a large number of countries fighting each other there would be no more global supply chains, a lot of products couldn't be finished and many companies would go bankrupt quickly. In such a scenario where unemployment rises quickly the question would be how people can afford their basic needs. Instead of gold or bitcoin, I would rather expect food and water to become a major currency again. Large companies won't be able to keep selling us everything we need, I think a lot of peer to peer trading in goods directly becomes the norm again. Bitcoin could be possible to pay for goods if enough producers are willing to accept it. During the first few month of panic I think people will be hesitant to accept bitcoin or gold.

[legendbtc]

It is not just Russia-Ukraine and Israel-Hamas. There's still the ongoing war in Yemen and I believe Libya is still in a state of civil war and maybe Syria although Assad is regaining the upper hand with the help of the Russians. There are indeed a lot of areas that are highly sensitive like the Korean peninsula, China and its neighbors, the Azerbaijan-Armenia issue on Nagorno-Karabakh, etc.

Bitcoin is decentralized and is not involved in any type of politics so it could become some sort of protecting our wealth like gold and other precious stuff that are valued over time.

There are more number of wars going on. Think of the Ukraine - Russia war, there were heated discussion for some time period and media have forgotten it. So is the people, and now it is Israel - Palestine. Same as this we were able to see more number of wars taking place around the world. In certain things it is really impossible to reach a solution and one such is with the Israel-Palestine issue. Bitcoin is all about the decentralised functioning and not it doesn't have much of dependency over the traditional market. So, there'll be fluctuation and the same doesn't have major movements in the market.

I don't think bitcoin can operate independently of traditional markets or the world economy. If it could operate independently, why was it dumped when the war between Russia and Ukraine broke out, as well as other assets? Or the Fed raising interest rates, why does bitcoin fluctuate and decrease more every time inflation increases, interest rates increase...Bitcoin is part of the economy and it is also subject to positive and negative influences of the economy. Bitcoin would not exist without its connection to the world economy, Bitcoin price increase is due to money flowing in and where does the money come from?

[Plaguedeath]

I don't think bitcoin can operate independently of traditional markets or the world economy. If it could operate independently, why was it dumped when the war between Russia and Ukraine broke out, as well as other assets? Or the Fed raising interest rates, why does bitcoin fluctuate and decrease more every time inflation increases, interest rates increase...Bitcoin is part of the economy and it is also subject to positive and negative influences of the economy. Bitcoin would not exist without its connection to the world economy, Bitcoin price increase is due to money flowing in and where does the money come from?

You take it wrong, although most people buy Bitcoin using fiat, but it's not mean Bitcoin is backed by fiat and when fiat gone, Bitcoin will gone too.

You forget if Laszlo ever bought pizza using Bitcoin, this mean Bitcoin can be used as a currency and the price of Bitcoin is totally depends on the market. Bitcoin fluctuate when there's a good or bad news are influenced by the market, if people aren't care with the news, Bitcoin price would relatively stable.

[BALIK]

I don't think bitcoin can operate independently of traditional markets or the world economy. If it could operate independently, why was it dumped when the war between Russia and Ukraine broke out, as well as other assets? Or the Fed raising interest rates, why does bitcoin fluctuate and decrease more every time inflation increases, interest rates increase...Bitcoin is part of the economy and it is also subject to positive and negative influences of the economy. Bitcoin would not exist without its connection to the world economy, Bitcoin price increase is due to money flowing in and where does the money come from?

You take it wrong, although most people buy Bitcoin using fiat, but it's not mean Bitcoin is backed by fiat and when fiat gone, Bitcoin will gone too.

You forget if Laszlo ever bought pizza using Bitcoin, this mean Bitcoin can be used as a currency and the price of Bitcoin is totally depends on the market. Bitcoin fluctuate when there's a good or bad news are influenced by the market, if people aren't care with the news, Bitcoin price would relatively stable.

Are you using bitcoin as currency or investment? From what I know, the majority of people are looking at bitcoin as an investment rather than a currency, so it's funny that you say people should stop paying attention to the news. One more thing, are you brave enough to spend your bitcoin when you buy it for $69k and when it costs $15k, will you still spend it? Laszlo once bought 2 pizzas with bitcoin but did they use bitcoin as a measure of value or did they still base it on the value of bitcoin relative to USD?
We should not deny that fiat is still the measure of value of all assets in the world, including bitcoin, bitcoin cannot replace that role of fiat.

[GbitG]

Now, in the face of a global chaos, do you think holding on to Bitcoin is a good idea to protect our assets? Will it be acting like gold which can be so valuable during war?

Damn, bro, that's the question I'm interested in discussing here. You raise the question of whether holding Bitcoin is good for our assets during a global conflict.
So, my position on this topic is that Bitcoin is a perfect and safe thing to protect your assets or money, but recently, due to war chaos (Israel and Hamas), the price of Bitcoin has seen a downward trend. After that, Bitcion is looking a little doubtful. It means that there is an impact on Bitcoin in war situations because it is obvious, like when the 2% dump in Bitcoin occurred due to the war between Israel and Hamas. When big countries fight a war, It will have a greater impact.

So I don't think that Bitcoin will maintain this price in the global chaos at this time as it is now. Because every person will sell Bitcoin to survive for themselves, from the government to the public, everyone will sell their invested assets. Government for war reasons, and the public sells them for basic needs, food, etc.

The justification for this is that Hamas and Israel have dumped the market despite being small states. So when big states fight, then more dumps can be seen in the price. So that means what to do with Bitcoin when humans are gone. Bitcoin will be beneficial when humans survive, and when there is a war between nuclear states, so how will the economy remain if from breaks down while it is not possible for humans to survive?

So the conclusion is that holding Bitcoin is good when Bitcoin moves normally in the market and there is no such bad situation to impact the Bitcoin price, like the recent conflict.