Post
Topic
Board Economics
Re: Iran/US tension's effect on crypto and economy ?
by
deisik
on 11/01/2020, 14:14:35 UTC
This kind of war should not have any impact on the price movement of cryptocurrency, it's just that due to the inadvertent factor of soaring prices, it is said that this war can give rise to cryptocurrency prices when cryptocurrency price movements should depend on the economic warfare of various large countries with economies strong

I wouldn't discard and throw away this factor altogether

With assets as speculative and volatile as Bitcoin, emotions play a major part in their price dynamic. We should remember (whether it feels good or bad) that most of Bitcoin's value as reflected by its price has no real backup in the form of goods and services which can be bought with it (that's basically the definition of speculative)

All in all, it means that we can see huge price moves caused or triggered by however small influencing factors (which is known as the butterfly effect), and not necessarily in the direction we expect most (read, Bitcoin could easily fall instead of rising on these tensions and how they have developed)