Are Cryptocurrencies As A Safe haven Amid Russia / Ukraine Conflict

Mark Cuban Once said, is Bitcoin is “a store of value…that is more religion than solution to any problem.”therefore it seems Cryptocurrencies are more of a religion than a problem-solving tool. When you acquire bitcoin or those cyrptocurrencies , you must understand that you are investing in a complete community.

Despite the fact that professional investors and big financial institutions are getting interested in the notion, those who invest in Bitcoin may be perceived as radicals or members of the counterculture( not unless, they start legalizing Bitcoin )

Investing in Cryptocurrency Over a Long Period of Time

Many observers feel that bitcoin is no longer in a bull market and that making a lot of money with it is no longer possible. Cryptocurrencies, according to others, will be phased out altogether within the next several years.

When people say things like this, we know they meant well and believe they are speaking the truth, but it sometimes feels as if they are saying it on purpose to keep the cake for themselves.

This is because bitcoin is unlikely to vanish very soon. Bitcoin isn’t going away anytime soon.

Elon Musk has spent an undisclosed amount of money on cryptocurrencies this year, despite his reputation for sound financial judgment, while El Salvador has embraced Bitcoin as its official currency.

Consider that there are currently over 10000 different cryptocurrencies in circulation, with new ones appearing on a daily basis . Not to mention the various opportunities for creative and problem-solving that these decentralized assets provide.

If you do not participate in the bitcoin sector, you will undoubtedly be dissatisfied especially for those who believe that the decentralization concept should be given a chance to this new #NewNormal Millenia World

They are passionate about a new technology that, if made widely available, has the potential to enhance people’s lives. For those who predict bitcoin’s price will reach $150,000 in the next decade, and for those who dread losing out on the cryptocurrency’s gains, it’s tough to ignore the risk of missing out.

People place a higher weight on the good qualities of a situation than the negative ones. It’s easy to get caught up in the excitement around bitcoin’s potential.

It sends forth a beam light of new hope to the Millenial generation as

many young people are fascinated by Bitcoin because they feel they lack the assets necessary to generate any form of riches, much like money is a technology that allows us to envision the future.

Millennials (those born between 1990 and 2002) possessed only 4.3 percent of total wealth, according to IMF and Fed estimates for United States ,The UK and Europe ,many just depend on montly paycheck and cannot afford to own a House or property as they approach the stage of setting up their own families

There are no reliable, non-speculative options available to someone with a substantial cash reserve who want to accumulate wealth over time. The bitcoin frenzy may be explained in this way. The fact that the existing system handles young people in this way is raised as a severe issue,as Japan and korea and hongkonger set a good example,where many young Millenials felt hopeless once they reach a age of 36 ,without owning a real property, as do their parents during the same phase of life

Finally, and perhaps most importantly, one of the most compelling reasons to invest in cryptocurrencies is the necessity for long-term asset storage and they feel the risk is at minimum , as most look at it that Inflation will not allow any political party or government agency to devalue its assets.

Although , Bitcoin does not appear to be a safe refuge during times of crisis as it has never really been tested on a scale similar to what is happening in Russia/Ukriane situation for this week .

We might see a tenfold to twentyfold surge in cryptocurrencies within a few weeks during this crisis, with Bitcoin behind and maybe Ethereum taking the lead.

Recessions and inflated markets, on the other hand, make distinguishing between reality .Investors are contemplating whether to invest in gold, fiat currency, equities, or cryptocurrency

If the conflict isn’t an extinction-level disaster and the Internet isn’t shut down, the value of bitcoin is likely to soar.

The US dollar, Swiss franc, and Japanese yen are all examples of “safe haven” fiat currencies that investors seek out when the market is volatile. However, this rule isn’t perfect: if a country has a problem, the value of its currency may not grow. When the US goes to war, for example, the dollar tends to decline, and the yen has been bolstered by so much uncertainty that it’s impossible to say how much higher it’ll go in the short term.

In uncertain times, other safe haven assets, such as commodities like gold, are preferred by investors as a kind of risk protection. Bitcoin is the digital equivalent of gold, providing the safest haven in the digital world. Even while bitcoin is still extremely volatile and uncertain, it is well-established and rather stable in comparison to other cryptocurrencies. Despite the fact that no one can foresee the price of bitcoin in the future, it is more likely to be greater than $300,000 since demand growth outnumbers supply growth.

Conflict is more likely to have a positive rather than negative impact on bitcoin’s price (demand). Oil prices have lately risen due to the Russia-Ukraine conflict and the likelihood of a refugee influx from Ukraine or other war-torn places. Bitcoin, on the other hand, might be a suitable alternative for migrants who need a safe place to store their monetary possessions while they wait to be relocated. Bitcoin may lose value after the threat has passed and people start selling their bitcoins for fiat cash.

In the case of disruption on different currencies value caused by a conflict, it appears that the price of bitcoin will skyrocket. This would, however, be due to the depreciation of those currencies rather than the value of bitcoin. Bitcoin, on the other hand, may prove to be a beneficial inflation hedge in times of strife. We can only hope that we will not be required to find out!

Gold was formerly regarded as the ultimate financial safeguard against market volatility. People began referring to Bitcoin as digital gold and considering it a safe shelter for their money

Let’s see if we can figure out which is the better option during a downturn.

Bitcoin and gold are quite similar in many respects. Both are incredibly rare and difficult to obtain. Furthermore, these assets serve as safe havens in times of financial distress. Additionally, they are well-known and easily traded across the world.

People have long been drawn to gold because it is tangible and can be kept in a house safe. Bitcoin, on the other hand, is more difficult to invest in because it is a virtual money. While gold offers lower returns than Bitcoin, it comes with less hazards. Gold’s market volatility is also lower than that of other precious metals. One of the most significant contrasts is the government’s position on these two assets. Bitcoin is a gamble for people who believe in it since the government has no control over it. This is both a positive and negative development for Bitcoin, as the risk of fraud drives away potential investors.

Investors appear to have a variety of financial options available to them. The bears have returned in this scenario, with Bitcoin going below $35,000 for the first time in a long time. BTC’s quick plunge from $39,000 to $35,000 might slide further in the next few days will be baffling as everybody is on a “wait -see ” depending How Russia make it next move.

How Scenes Of Political Crisis Place Pressure on Cryptocurrency Signaling Bears

In compared to Bitcoin’s six-month lows, gold prices are soaring. Despite the lack of market activity, many analysts feel that gold is still in a bull market. Gold’s purchasing power increases with time, making it a safe investment. As the value of consumer goods commodities continues to decline, investors are turning to gold, which can now be used to buy a wider range of commodities than before. This is particularly important in light of the current wave of low yields and tensions

A wide range of countries throughout the world are currently in high demand for stable coins and gold-backed exchange-traded funds (ETFs). Gold will appreciate in value if the US Federal Reserve continues to lower interest rates. Investors will flock to the precious metals markets if more symptoms of uncertainty arise.

Furthermore, the common investor has access to less profitable options. When interest rates are exceptionally low or negative, bank deposits lose purchasing power. Today’s stock market volatility, as it actually runs this week , makes investing in equities all too easy to lose money. Cryptocurrencies based on Bitcoin are extremely volatile and unstable and follows and react accordingly within the same hours but let hope it recovers in the next split seconds

The Russia/Ukraine situation has resulted in a huge decline in prices, as you may have seen. Furthermore, each cryptocurrency is distinct from the others buit across the whole Board, we can only see Red !

If you’re ready to take a chance, consider investing now, while the market looks to be on sale. If you’re frightened of losing everything, don’t invest because the market might plummet much more.

Bitcoin’s value will be halved in a matter of days . If supply is reduced in half, the price of bitcoin is likely to skyrocket over the next weeks , but let hope the Fed New regulation will not be too stringnet ,but most worrisome ,is the US will wakes up to higher inflation due to Oils prices increase caused by the conflict . For long-term investors, this might be fantastic news as a substitute for the dollar, cryptocurrencies will soar………….to ???

Recession for Doom

Depending on the timing and reasons of a recession, cryptocurrencies may face a variety of implications. “You might expect a rush to limited cash and a drop in the relative market value of all liquid assets (such as gold) in the event of a future crisis in traditional markets owing to the Russian/Ukraine conflict.” The price of gold is suspected to fall if this happens.

Demand for higher-grade dollar-pegged stablecoins may increase if all volatile cryptocurrencies see a significant drop. Stablecoins may fetch a premium on the market since many crypto holders will not want to switch to fiat money. Dollar-pegged stable currencies that are algorithmic only or do not have a visible 100% reserve of actual dollars may be disputed or even shorted till they collapse!

Other reasons, such as a loss of confidence in the US currency, might trigger the next recession, with very different outcomes than those predicted above.

Cryptocurrencies will be embraced and pushed to new heights as a viable alternative to US currency. As a result, dollar-pegged stablecoins might be severely undervalued, putting their value to the test.

Real-world assets such as gold and silver would very certainly see a mass flight from government-issued currencies in the event of a worldwide recession.

Precious metals, which act as a safe haven during times of economic turmoil, are frequently untouched by monetary market changes. “Those who already understand the benefits of cryptocurrencies are likely to show increased interest in entering the market .Bitcoin is like a religion belief and many investor will trade and treat it as a safe haven asset .As a result, it began to exhibit characteristics of a “risk on” asset, such as strong performance

Market will later see a rush to safety and liquidity now and that would have a detrimental impact on the value of bitcoin and other cryptocurrencies. However, if bitcoin can shift and rise as a safe haven asset in a deleveraging high tension period of possible War , that would be Surprising news coming for bitcoin.

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