1. Short-Term Volatility:
- Prices often drop initially due to panic selling (e.g., Bitcoin fell 8% after Russia invaded Ukraine).
- Altcoins typically suffer more than Bitcoin.
2. Sanctions & Crypto Adoption:
- Countries under sanctions (e.g., Russia, Iran) may turn to crypto for cross-border transactions.
- Stablecoins like USDT see increased demand as "digital dollar" substitutes.
3. Humanitarian Use Cases:
- Crypto donations can bypass traditional banking (e.g., Ukraine raised $100M+ in crypto post-invasion).
- Pakistan/India conflicts could see similar crowdfunding efforts.
4. Regulatory Crackdowns:
- Governments may restrict crypto to prevent illicit financing (e.g., India’s past banking bans).
5. Long-Term Trends:
- Bitcoin often rebounds as a hedge against currency devaluation.
- Infrastructure gaps (e.g., Pakistan’s electricity issues) limit crypto’s utility in war zones.
Key Takeaway
Crypto acts as both a tool (for evasion/aid) and a casualty (of volatility) in conflicts. Bitcoin remains more resilient than altcoins.
