How will the war affect the Cryptocurrencies market..?
Greetings everyone,
I hope you are all well. This period is a period that can adversely affect you as well as me. Even now, the war is going on in four major countries. Although the war is not in our countries, it can affect us indirectly because of this.
In today's article, I hope to talk about how the ongoing war in different countries of the world affects cryptocurrencies. We really shouldn't take this for granted. Because this war will affect the crypto market as well as the entire global economy.
No matter which country the war takes place, there are only disadvantages, not advantages. There is huge loss of life as well as property damage. Therefore, the best answer for war are meth growth without violence.
How war affects the cryptocurrency markets ?
This effect can affect the crypto market and its traders in various ways. Regulatory changes, Volatility, Safe-haven investment are examples of such influencing factors.
And these effects can be positive or negative.
In tough times like this war, some investors will turn to cryptocurrencies like Bitcoin, Ethereum, BNB... etc.. as a safe asset. Because instead of keeping local currency close at hand, it is advantageous to store cryptocurrencies. Because they will not be destroyed by external factors like ordinary money. And will not be lost.
Also, since crypto currency is not tied to any government or country, it reduces the risk of being affected by war. So, as new investors tend to buy crypto currency, this increased demand influences the price of cryptocurrency to rise.
And there is another side here. That is if government introduces new laws, bans or restrictions on cryptocurrencies during wartime, this may affect the use of cryptocurrencies. This can affect the crypto market value to decrease or increase in some cases.
Generally, a crypto market is not in a fixed state. So in times of war, that instability is aggravated. Therefore, even the prices of cryptocurrencies can change. Such price fluctuations can adversely affect traders.
Further.....
And such war conflicts can lead to the collapse of the crypto market. Because the crypto market can lead to such crashes. ( One of the reasons for this is the volatility of the crypto market. )
And if investors look at cryptocurrencies as their new investment strategy, this can have a significant impact directly on the price fluctuations of the crypto market.
In fact, global wars like this affect not only the crypto market but also the stock markets of countries.
Conclusion
Users will have to face various uncertainties in the crypto market in such harsh situations like wars. Therefore, we should be ready to face such situations. And we must keep our assets safe. Of course, it is impossible to say for sure whether this can be positively or negatively influenced.
References :-
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In times of war, I wouldn't recommend cryptocurrency for storing assets because cryptocurrency will also be affected.
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Thanks for reviewing
you try to properly review the impact of war on safe haven assets.
However, I have to correct your opinion on this one.
because when the war happened, the price of gold rose.You can see the extraordinary impulsive movement of gold in these two weeks.
In fact, crypto assets are a very high-risk market and will tend to be abandoned in terms of capitalization. You can see the movement in the past 2 weeks compared to gold.
but I appreciate your review of this, even though it has errors.