Bitcoin is purely a risky asset, with a strong correlation to the US stock market.

What would happen to cryptocurrencies if a world war occurs???

First, the conclusion: 99% of coins will go to zero.

Yes, it's not depreciation but going to zero.

Not extreme at all, why do I say this?

First, you must understand that 99% of virtual currencies (altcoins) are scams; once a war breaks out, scammers will definitely cash out and run away at the first opportunity.

Now let's talk about Bitcoin. The vast majority of people believe that it is a safe-haven asset, some digital gold; go read the white paper, Satoshi Nakamoto's positioning of Bitcoin has always been as a peer-to-peer electronic currency, there has never been a notion of digital gold.

So why do mainstream voices believe Bitcoin is digital gold and worth holding long-term?

Two words: brainwashing.

They tell retail investors that Bitcoin is for hoarding, getting them to hold onto it, which reduces market liquidity, making it easier for project parties to pump and dump, thus completing the harvest.

Let's talk about Bitcoin in more detail.

The Birth of Bitcoin

It can be said that the early advocates of Bitcoin were attracted by the concept of a world currency.

Because currently, the fiat currency systems of countries around the world have various problems, central banks issue currency at will, diluting the value of fiat currency and effectively squeezing the common people.

OK, what to do? Bitcoin came into existence. Due to its fixed total supply and inability to be inflated, there is no need to worry about excessive currency issuance depriving users of their wealth.

Can Bitcoin replace fiat currency and become a world currency? Is it reliable?

You must know the three elements of currency circulation: stable value (high volatility), easy to carry (quite convenient), strong liquidity (high transfer fees, weak liquidity, fewer accepting groups).

It is clear that Bitcoin does not currently meet the attributes of a currency. Why? Because Bitcoin has been hijacked by programmers, leading to high transfer costs. If you want to understand this history, look into the competition between large and small blockchains.

Moreover, fiat currency, as a manifestation of national will, can it allow your Bitcoin to circulate? It's unrealistic.

Is Bitcoin digital gold?

It has already violated its original intention.

Bitcoin was not initially intended to be a store of value, but rather as a circulating currency.

Is the narrative of digital gold a capital rhetoric or something else? Is this pie reliable? Time will tell.

The Value Support of Bitcoin

Speculation, community, gambling, asset transfer, strong consensus.