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.

[crwth]

It's a hedge against different currencies. Especially in the market now, it's getting more attention because BTC isn't really affected by other instabilities and connected to any country, so it could be a safe haven for your money^{(This is if the value doesn't tank)}

If there are going to be problems, I think stablecoins could help reduce volatility, especially if the local currency you have has issues. Mostly it's still an investment tool.

[Fiatless]

It's a hedge against different currencies. Especially in the market now, it's getting more attention because BTC isn't really affected by other instabilities and connected to any country, so it could be a safe haven for your money^{(This is if the value doesn't tank)}

If there are going to be problems, I think stablecoins could help reduce volatility, especially if the local currency you have has issues. Mostly it's still an investment tool.

Bitcoin has really surprised this period. It has gone higher by about 11% since the US-Iran war started. It has outperformed even gold which is traditionally seen as the best asset during conflicts. Bitcoin is gradually maturing to become a less risky asset than it is generally viewed.

Keeping funds in stablecoins could be good at reducing volatility. But these coins are managed by centralised platforms. Which means you don't have control over your money.

[BRINIRHA]

At least for those living in conflict affected countries say, if they want to flee to another country on a tourist visa or something similar I’m sure many of them are starting to move some of their assets into Bitcoin or stablecoins like USDT or USDC. That way, they can go to another country without worrying about the assets they’ve transferred to crypto. So, if, for example, banks were to close in their country, it wouldn’t affect them at all. Because they no longer have money in the bank or anything like that except for a small amount. I think taking our assets to another country in the form of crypto or Bitcoin is easier and safer, as long as we know how to secure our own crypto wallets.

[yhiaali3]

If the news we've heard recently is true that people in Iran have started selling their assets and buying Bitcoin, then this is a strong indication that people are actually turning to cryptocurrencies as a financial backup alternative and not just a theory.

Crypto assets provide a great alternative in times of crisis and war because they preserve value first and foremost, can be easily stored on the internet or small portable electronic devices and can be easily transferred across borders in case of forced migration or escape.

[Asuspawer09]

I mean it just make sense since there were only around six percent of people around the globe that actually invest or know Bitcoin if im not mistaken with that we know that Bitcoin still wasn't fully adopted around the globe even though I can say that Bitcoin been a long way from the past years, compared way back to 2017 even here in my country I think there were only a few people and even here in the forum we were just a few people locally that known what is Bitcoin. With that, it is just difficult to trust something that is not really globally known.

Most of the people for sure are going to result on the traditional way to save there wealth investing on gold or other assets, since most of the products, food, gas etc is going to increase its prices we can already expect the the inflation is going to kick in since government for sure are going to print more money in times like these. Compared to the past war like the Ukraine and Russian war we dont see a huge movement in fast we see a price increase in Bitcoin, I think a lot of investors are already trusting Bitcoin in storing it's value in times of war, because last time the war just dump the market price of Bitcoin completely. But this time it even makes a slight price increase. I think the Bitcoin Gold narrative is working as a lot of platforms and even governments are already trusting Bitcoin.

[Spaceman1000$]

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!

People will certainly turn to crypto during geopolitical tension or Crisis situation, but the percentage will be limited to those who understand how crypto works and they've used it before. The narrative is not theoretically alone,  the narrative has been practically as people have a large scale of crypto as either their safe heaven to keep their fund's or as their investment. Take for instance the crisis happening in Iran, trust me at this point most banks will be shut down because they're in a crisis situation, so but if you have your funds in crypto especially in Bitcoin, it will be safe for you.

[Ucy]

Ofcourse, if there is a global (or even societal) uncertainty, big enough to distablize the matrix (an interconnected system of bondage) and render it unusable or use-less , people will adopt unaffected and independent alternatives, one of which is Bitcoin. Bitcoin/crypto is likely to be immune from the uncertainty due to its decentralized nature, which makes it almost unstoppable by high degree of natural or artificial calamities that are capable of complete shutdown of the matrix but incapable of shutting a system with many independent nodes that will likely have one or more honest hosts with full immunity from such calamities.
Another reason people will leave the matrix for Bitcoin is tyranny, increase in lawlessness or persecution.

[Davidvictorson]

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.

I agree with you. In times of uncertainty just as we like were we are at right now, buy bitcoin and stack up as much as you can . There is a huge speculation about inflation and economic hardship which I believe is going to happen. Monies in the bank are about to lose their value. Bitcoin won’t.