Below are the main effects that a US war can have on cryptocurrencies:
1. Search for alternative assets (safe haven effect)
During periods of war or geopolitical tension, investors often seek assets that are not directly linked to governments or traditional banking systems. Cryptocurrencies, especially Bitcoin, are often seen as a form of "digital gold," a store of value that escapes centralized control.
2. Intense short-term volatility
Although interest in crypto may increase, war also generates fear and uncertainty. This can cause sharp price movements, both up and down. Institutional investors, for example, may sell cryptocurrencies to obtain immediate liquidity, leading to rapid price declines.
3. Devaluation of the dollar and indirect impact
If the war compromises the US economy or increases military spending, the dollar may weaken. In this scenario, digital currencies may appreciate as an alternative to the dollar, especially in countries looking to de-dollarize or protect their capital.
4. Increased regulation and oversight
Armed conflicts are often accompanied by an increase in financial surveillance to prevent funding of armed groups. This may lead governments to restrict or monitor the use of cryptocurrencies, negatively impacting the sector, especially projects focused on anonymity.
6. Change in global financial geopolitics
If the war results in economic sanctions or rearrangements among powers, some nations may adopt cryptocurrencies to escape the traditional financial system dominated by the West. This could boost the use of cryptos as an alternative to SWIFT or the US banking system.
Comment "I want" if you want to know more about the content!
