The Real Use Case of Crypto During Global Instability

[Glowy]

During periods of geopolitical tension and economic uncertainty, do people actually turn to crypto as financial backup or is that narrative still mostly theoretical?

Am just thinking out loud!

[Charles-Tim]

We have no clear information about this yet in short term speculation, but bitcoin has performed well after it will fall a little when war starts, it increased back within a day or two days and may even increase higher. In long term, bitcoin price increase and get to all-time high. So despite no clear certainty yet, it is still highly advisable to buy bitcoin during economy uncertainty if you are not planing to sell it within a short period of time.

I am not referring to crypto, I am only referring to bitcoin which is the only one that I trust amount them.

[goldkingcoiner]

During periods of geopolitical tension and economic uncertainty, do people actually turn to crypto as financial backup or is that narrative still mostly theoretical?

Am just thinking out loud!

I think cryptocurrency is too young for the majority of people to trust it in times of crisis. They turn to what they know: Gold and cash.

Personally, I would go for Bitcoin because I understand why it is a more secure store of value than gold. But gold has that irresistable physical quality that Bitcoin does not have.

P.S. This thread does not belong in this section. It has nothing to do with securities. I recommend moving it to a more relevant board like economics.

[TheUltraElite]

Geopoliticial instablity would lead to problems in internet and currencies. I think cash would become king. Internet comes when stability is established and hence crypto gets less importance here.

There have been thread discussing what whether bitcoin would rise in public use when countries get damaged after wars. The general answer to this is that after wars and all, the immediate focus is going to be daily needs, sanitation and healthcare and not things inside the internet bubble.

[Zlantann]

During periods of geopolitical tension and economic uncertainty, do people actually turn to crypto as financial backup or is that narrative still mostly theoretical?

Am just thinking out loud!

Bitcoin is indeed a safe haven for those who understand how the system works. It is common for people to rush to gold when there is global uncertainty. Gold is more popular and less volatile.

Those who are aware of Bitcoin know that the price will certainly rise during the bull run. So it is safer to convert my fiat to Bitcoin during a period of geopolitical tension since I am aware that it will appreciate in a few years. Its not theoritical but practical for those who understands. 

[Mhizlove]

Honestly this isn't a theory, because anything politics or economy begins to be unstable some people likely run back to crypto as a backup plan. For example the war between Russia and Ukraine make inflation high so people uses crypto to move their money when normal banks has issues also in countries like Venezuela and Argentina too.

But the thing is that crypto isn't that strong or stable for people to fully depend on it because of the price that changes alot rather it's been used as a plan B option, but it's not that perfect yet to full depend on it

[Glowy]

Geopoliticial instablity would lead to problems in internet and currencies. I think cash would become king. Internet comes when stability is established and hence crypto gets less importance here.

There have been thread discussing what whether bitcoin would rise in public use when countries get damaged after wars. The general answer to this is that after wars and all, the immediate focus is going to be daily needs, sanitation and healthcare and not things inside the internet bubble.

You made valid points there, in extreme conflict situations where infrastructure is damaged, basic needs will obviously take priority and even internet access can become unreliable. In those cases, cash and essential goods naturally become the immediate focus.

But I wonder if crypto’s role might appear more in the surrounding conditions rather than the front line of conflict for example cross-border transfers, donations, or moving funds when traditional banking systems become restricted.

Networks like Bitcoin still require internet access, but in regions where connectivity remains available, they can provide an alternative when financial systems become unstable.

Maybe crypto becomes a parallel tool for people who still have digital access.

[Fructose]

During periods of geopolitical tension and economic uncertainty, do people actually turn to crypto as financial backup or is that narrative still mostly theoretical?

Am just thinking out loud!

We can observe to what is happening now. The past few days the fiat currency was depreciating in value while bitcoin was only going up. But compared to other stable assets like gold and silver, its still erratic. But this fact in of itself makes you have a higher purchasing power than the fiat currency. I view that this method would be more implemented in the near future, that most investors would bet on crypto more than the traditional ones like gold and silver. This is very heavily speculated, but why not invest now and this theory out? Its already showing results at present.

[Gozie51]

During periods of geopolitical tension and economic uncertainty, do people actually turn to crypto as financial backup or is that narrative still mostly theoretical?

Am just thinking out loud!

I don't think it is theoretical, the nature of cryptocurrency especially bitcoin is that of freedom that cross every jurisdiction. It use is not limited and that means if for instance any government in war decide to close her bank or that the attacking country take over the finance of the country, those who have cryptocurrency can still buy and trade at will because they are not subjected to any control. This is part of the reason that it is better to use noncustodial wallet where you have absolute control without any restriction because in such chaotic time even exchanges will be restricted from transactions.

[Ambatman]

I believe Bitcoin performance now is an answer to your question
Many people's first instinct still remains Gold
But after a while they start transitioning into Cryptocurrency
Bitcoin to be specific.
So yeah it works well during crisis and isn't confined to one country during war.

[Marvelockg]

During periods of geopolitical tension and economic uncertainty, do people actually turn to crypto as financial backup or is that narrative still mostly theoretical?

Am just thinking out loud!

In certain context, people might decide to change the choice of the asset they are invested in based on safety reasons and the fact that in times of global instability, certain sectors might experience direct hit because of the instability and investing into something like bitcoin that to an extent does not easily get affected or even though it does get affected has an high tendency of quick recovery is a sure thing an investor will want to look into

[kotajikikox]

During periods of geopolitical tension and economic uncertainty, do people actually turn to crypto as financial backup or is that narrative still mostly theoretical?

Am just thinking out loud!

It’s not theoretical. We have seen many geopolitical issues in the past years. But the most example would be Iranian buying bitcoin before their currency even drops. They are already trying to save of their money as much as possible.