Re: Effects of war on bitcoin

Most of us believe that if there is a conflict, the price of Bitcoin and other cryptocurrencies will plummet. But that is not true, because in 2020, there is a global pandemic that severely damages our economy, but what happened in Bitcoin that time? Price hikes have caused an abrupt surge in the market, indicating that there is a lot of demand. As you can see from the chart, it reaches an all-time high. As a result, I believe that if there is a war, it may be beneficial or detrimental to crypto.

War is different from the pandemic. War can destroy infrastructure, pandemics do not. So in case war erupts globally, it is obvious that destruction will hinder communication. when communication is down, it will be hard to do trades so possibly the Bitcoin market may come to a halt. With many lives lost and poverty due to war, it is obvious that Bitcoin will lose its demand since people will be prioritizing their basic needs for survival. More or less Bitcoin market will be in a decline.

I agree that war is different from pandemic but both can cause economic crisis. If there's a war just like what happened in Ukraine, the internet connection is disrupted and it difficult for them to communicate. So institutions and banks will be having difficulty to trade if there's no internet connection and would affect the market price really hard that could lead to a massive down fall. But the thing is, there is no chance of having a war just like what happened before, in our history. That's why for me, anything that can cause economic crisis can be taken as an advantage for whales and institutions by buying an asset in a very discounted price before it goes up.

Internet connection is very important on cryptocurrency since we cannot do any transaction if connection is off. Knowing how big the effect of the war and for sure internet signals will take long to get fixed if your country will be totally destroyed by the war. For sure bitcoin's economy will face a hard condition since maybe this can create chain effect to other countries and they dump to. But as said thus is temporary only and maybe other investors on different country will start to accumulate and even if there's no participation on a country affected by war bitcoin will still rise.

Internet as of this time is very important in cryptocurrencies because you can't do any actions with your funds if there's no internet access. However, there are practices already that you can do a transaction without internet connection, and that was tried on Bitcoin. One them are through SMS[1] and Radio Waves[2]. It may be tricky for now but I think we will become familiar with it in the future.

So without any of that all transaction will be on hold and no growth for cryptocurrency will happen at that time. But we are now living on modern ages and once the war is over for sure the infrastructure and other related to communication will be fix first. Government will make it as priority since internet and other signal towers for communication is important for their rehabilitation. Hard to execute that transaction without internet and provably bitcoin users will just wait for internet to comeback before doing any transactions.