A new report from the Bank for International Settlements (#BIS ) – an organization that acts as the 'central bank of central banks' – has just revealed a noteworthy truth: Bitcoin and crypto are most used when the economy is in crisis.
🔻 When currencies lose value, people turn to Bitcoin for survival.
In many countries facing high inflation, capital restrictions, or expensive and inefficient banking systems, people no longer rely on fiat money or traditional banks. Instead, Bitcoin and stablecoins like USDT, $USDC are becoming practical financial tools that help them:
Protecting assets against devaluation risks.
Transferring money across borders faster and cheaper.
Bypassing financial barriers set up by governments.
The BIS emphasizes: when capital flows are tightly controlled, the demand for crypto increases sharply – a clear demonstration that cryptocurrencies are playing an essential role in modern financial life, especially where traditional systems fail.
🌍 Global crypto capital flows are booming.
Data from exchanges and crypto applications show:
Cross-border crypto transactions surged from under $7 billion (Q1/2017) to a peak of $800 billion (Q4/2021).
After the drop in 2022, this capital flow has recovered to around $600 billion in Q2/2024.
Notably, the proportion of Bitcoin in cross-border transactions dropped from 80% to below 25%, making way for stablecoins. But this does not reflect a decrease in Bitcoin's value – it shows that users are choosing the right tools for each objective: storing value with BTC, making payments with stablecoins.
📈 Even institutional investors are turning to Bitcoin in an unstable market.
The BIS points out that when global anxiety indicators like VIX rise, the use of Bitcoin also increases. This confirms: not only individuals but also businesses and institutional investors view Bitcoin as a safe haven in uncertain times.
✅ Conclusion: Bitcoin is no longer just a speculative asset.
Bitcoin is increasingly demonstrating its practical role in the global financial landscape, especially in areas with inefficient traditional systems. From now until the end of 2025, as the global economy remains unstable and the demand for cross-border payment and asset storage increases significantly, Bitcoin and stablecoins will continue to be indispensable gears in the new financial system.
🚨 Warning: The cryptocurrency market always carries risks. Investors need to be cautious and do thorough research before participating. Crypto is not suitable for everyone.