If WW3 were to happen, its impact on cryptocurrency would be profound and unpredictable, depending on how the war unfolds. Here are some key scenarios:
1. Market Shock & Volatility
At the onset of war, crypto markets would likely crash, just like traditional markets, as investors panic and move to "safe" assets like gold and the US dollar.
However, crypto could later surge as people seek alternatives to collapsing fiat currencies in war-torn regions.
2. Sanctions & Government Crackdowns
Governments may restrict crypto usage to prevent capital flight, tax evasion, or funding of enemies.
Sanctioned countries may use crypto (like Russia and North Korea already do) to bypass financial restrictions.
Exchanges could be forced to comply with war-related sanctions, limiting access to certain wallets and transactions.
3. Cyber Warfare on Crypto Infrastructure
Nation-states might target blockchain networks, crypto exchanges, or mining operations through hacking or cyberattacks.
51% attacks on proof-of-work blockchains could become easier if large mining farms are destroyed.
4. Energy Crisis & Mining Disruptions
A major war could disrupt global energy supplies, making Bitcoin and other proof-of-work cryptos expensive to mine.
Governments might shut down mining operations to conserve electricity for essential infrastructure.
5. Surge in Crypto Adoption (or CBDCs)
If traditional banking systems collapse in some regions, crypto could become a primary means of transacting for civilians.
Alternatively, governments might push CBDCs (Central Bank Digital Currencies) as a controlled alternative to decentralized crypto.
6. Flight to Privacy Coins & Decentralized Exchanges
If crypto is heavily monitored, people might shift to privacy coins like Monero or Zcash and use decentralized exchanges (DEXs) to trade outside government control.
TL;DR: WW3 would initially crash crypto, but long-term effects depend on government control, cyber warfare, and economic collapse. Some cryptos could thrive as alternatives to traditional finance, while others may be banned or crippled by regulations and energy shortages.