Hello dear and loyal readers, beyond the high volatility that has developed in the last week the price action within the cryptocurrency market, there are external events that somehow can impact for better or worse the health of cryptocurrencies, in this post I wanted to bring a topic on itself; Faced with a war scenario of nuclear magnitude what role would cryptocurrencies play?
In the multiple international news portals, the declarations of Russia's use of nuclear weapons have been made public, in this sense, in the face of a war of the nuclear magnitude suggested by the President of Russia, Vladimir Putin, could the demand for Bitcoin increase as a refuge or would it continue to fall? What does the cryptocurrency have to offer in such a scenario?
In this sense, the above questions are some of the doubts that arise among investors and savers in the face of the threats of global war that Putin warned this week, hence, in an attempt to anticipate this terrible scenario that hopefully will not materialize, but nevertheless, it is important to study the advantages and disadvantages behind each of the projections or readings that are made in this regard.
For some experts, it is difficult to make a forecast or prediction of what could happen with cryptocurrencies, however, it should be considered that Russia announced that it will accept international Bitcoin payments through supervised wallets, which will increase the demand for BTC in countries consuming Russian oil.
Undoubtedly, the above could motivate the demand for greater use of cryptocurrencies, and in the hypothetical case of a world war, Bitcoin could serve as a decentralized cross-border payment method of any country to avoid sanctions, but undoubtedly, these scenarios could generate controversies and retaliation between the countries in dispute.
It is assumed that Bitcoin would serve as a method of payment in a war, and from this perspective, we could experience an increase in demand for Bitcoin as a method of payment in a war as Putin warns, and not only at the governmental level but also for citizens.
SOURCES CONSULTED
Bloomberg. A Decision Tree for Biden If Putin Goes Nuclear. Link
OBSERVATION:
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in the face of the war scenario that Russia is raising to protect its territory, cryptocurrencies are a tool that will serve to make payments outside its borders, since the decentralization of the cryptographic world allows it, being also more secure than traditional banking.