What will happen to digital currencies if World War III breaks out?
If World War III breaks out, the fate of cryptocurrencies will be complex and depend on many economic, political, and technical factors. Here are some possible scenarios:
1. **High demand due to financial instability**: In cases of global financial instability, individuals may resort to digital currencies as a safe haven to preserve value, which may increase demand for them and raise their value. Cryptocurrencies like Bitcoin are considered “digital gold” to some investors.
2. **Negative effects due to government legislation**: In the event of war, governments may take strict measures to control the economy, including banning or restricting the use of digital currencies, which can negatively affect their value and use.
3. **Cyber Threats**: Modern wars also include cyber attacks, and cryptocurrency infrastructure can be the target of these attacks. Any major hacks or disruption of infrastructure may result in a loss of trust and a decline in the value of cryptocurrencies.
In general, the fate of cryptocurrencies in the event of a global war will depend on how the conflict develops and markets and governments respond to it