The Real Use Case of Crypto During Global Instability

[HyperCodexV]

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 just theory anymore, people actually use crypto during unstable times, but not everywhere. In places where banks are failing, currencies are losing value or there are restrictions on moving money, people turn to crypto as an alternative. But at the same time, its not a perfect solution. Crypto is still very volatile, so while some people use it as a backup, others are still careful because the price can change quickly. So in reality, crypto is being used in those situations, but it’s not yet a full replacement for traditional finance out there.

[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!

it’s not just theory anymore, people actually use crypto during unstable times, but not everywhere. In places where banks are failing, currencies are losing value or there are restrictions on moving money, people turn to crypto as an alternative. But at the same time, its not a perfect solution. Crypto is still very volatile, so while some people use it as a backup, others are still careful because the price can change quickly. So in reality, crypto is being used in those situations, but it’s not yet a full replacement for traditional finance out there.

About price instability you mentioned,  while I agree there's price instability in crypto, it is the same for gold and we know the prices jump around too. So this is not unique to crypto, it's generally a market thing

[AmoreJaz]

it’s not just theory anymore, people actually use crypto during unstable times, but not everywhere. In places where banks are failing, currencies are losing value or there are restrictions on moving money, people turn to crypto as an alternative. But at the same time, its not a perfect solution. Crypto is still very volatile, so while some people use it as a backup, others are still careful because the price can change quickly. So in reality, crypto is being used in those situations, but it’s not yet a full replacement for traditional finance out there.

Bottomline, in times of uncertainty, people will always look for alternative options not only in investments but also in payment sector. So yes, crypto will be an additional option for people these days who are looking for contingencies. So yes, we will be seeing this use case in the current times and some people are already preparing for the worst to come.

[Ultimate Will]

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!

The answer was more simple before Wall Street went mainstream with crypto. The "BTC as digital gold" still is a strong incentive for many people, but on the huge fall this year big institutions were selling/dumping very heavily. In the media, they said it was "part of a general, quick reduction in risky assets." At that time they preferred gold, but historically Bitcoin has done much better than shiny metals.

[Princess Leah]

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!

The answer was more simple before Wall Street went mainstream with crypto. The "BTC as digital gold" still is a strong incentive for many people, but on the huge fall this year big institutions were selling/dumping very heavily. In the media, they said it was "part of a general, quick reduction in risky assets." At that time they preferred gold, but historically Bitcoin has done much better than shiny metals.

Hope you've seen how Gold and other physical assets has become useless in times of crisis as that in the middle east, the Gold or Silver can be destroyed by missiles where it's stored but Bitcoin stored in your wallet would remain safe forever so far you keys are properly secured, it would be tough for members of the Iranian regime to move their physical assets compared to Bitcoin.

 Moreover even though the price of Bitcoin goes down, it always recovers according to history and I hope you see how the price is gradually recovering despite the geopolitical tensions. Those over there who sold their Bitcoin to buy Gold cause Bitcoin reduced would regret after the tension is over.

[Yaunfitda]

it’s not just theory anymore, people actually use crypto during unstable times, but not everywhere. In places where banks are failing, currencies are losing value or there are restrictions on moving money, people turn to crypto as an alternative. But at the same time, its not a perfect solution. Crypto is still very volatile, so while some people use it as a backup, others are still careful because the price can change quickly. So in reality, crypto is being used in those situations, but it’s not yet a full replacement for traditional finance out there.

Bottomline, in times of uncertainty, people will always look for alternative options not only in investments but also in payment sector. So yes, crypto will be an additional option for people these days who are looking for contingencies. So yes, we will be seeing this use case in the current times and some people are already preparing for the worst to come.

Crypto has been a option for the majority of us since the pandemic era. So it means that it has been proven already to be a hedge against instability like in the covid-19 as everything is closed, no one can get out and yet people put their wealth on Bitcoin to hedge and stop the bleeding and it was a very successful experiment, if we can call it that way. Now, we have the conflict, so another litmus test for us. But if you look at it, Bitcoin has emerge as one of the best asset to hedge our wealth again, as the price goes up at the start of the war and since then we are in the green candle and reaching as high as $76k.