Cryptocurrencies as a tool to save Capital from war

The 34th US President Dwight Eisenhower was the last commander-in-chief of the country who had real experience of military command. As the leader of the “free world”, he once said:

“I hate war in a way that only a soldier who has survived it can do, who has seen all its cruelty, futility and stupidity.”

Indeed, war is one of the most destructive inventions of man. The global pandemic is becoming more and more focal, but it has been replaced by a new geopolitical risk. Tensions in Europe have risen to levels last seen during the Cold War or even the 1962 Caribbean crisis. The confrontation between NATO led by the United States and Russia against the background of the potential threat of the latter’s invasion of Ukraine has put Europe on the brink of war.

War is an extraordinary event, especially when nuclear Powers are involved in it. Financial markets reflect the economic and political landscape. If hostilities really begin, many innocent people will literally find themselves on the battlefield and will be forced to save their lives without thinking about property. In such an environment, cryptocurrencies can become a form of easily transported and highly liquid capital for those who find themselves “on the run”.

Ukraine has become the epicenter of geopolitical tensions

In 2020 and 2021, all the attention of the world community was focused on the COVID-19 pandemic, but now geopolitical risks have come to the fore.

The United States and its NATO allies continue to adhere to the policy of “open doors”, while Russia demands guarantees of non-expansion of the military alliance to the east, which implies a refusal to accept Ukraine into its membership. The Russian Federation has concentrated about 150,000 troops along the border with Ukraine and demanded written security guarantees.

NATO and the United States refused to provide any such guarantees, citing respect for Ukraine’s sovereignty. Negotiations and discussions are still ongoing, but the intensity of the conflict does not subside. At the same time, Russia and China have already formed a financial mechanism that will significantly reduce the effectiveness of potential anti-Russian sanctions.

In addition, Russia is a leading supplier of oil, wheat, palladium, aluminum, fertilizers and other raw materials. Increasing tensions jeopardize supply chains, creating prerequisites for shortages and price spikes.

Capital is prone to flight

The global shortage of commodities is just one aspect of a potential war. For many refugees, there is a separate issue of finding assets that will help save capital from the war zone and transfer it to any place.

On the eve of the Second World War, gold and diamonds performed this function; people sewed them into clothes and hid them in shoes, hoping to start a new life in another country with these funds. Capital flight is a more economic term that refers to the transfer of assets from one country to another against the background of unfavorable economic or political conditions.

In a hot spot, it may be impossible to carry out traditional bank transfers, but modern technologies have provided a new asset class that will allow you to take out unlimited capital “in your pocket”.

New tools

A digital wallet with bitcoins, ether or other tokens is freely placed on a flash drive. A strong password will allow the owner to access the capital anywhere in the world and convert it into local currency.

Thus, cryptocurrencies are a simpler and safer tool for the export of capital than gold, diamonds or any other physical assets. The growth of geopolitical tensions may lead to a jump in demand for cryptocurrencies from the population of hot spots.

China is interested in the Ukrainian scenario in the context of the Taiwan issue

In 2021, the whole world watched the flight of the population of Afghanistan against the background of the withdrawal of Western troops and the coming to power of the Taliban. Now the year 2022 has come, and Ukrainians may already be in the role of refugees.

China has supported Russia in its plans for Ukraine, and Russia seems to have reciprocated by advocating the “reunification” of China and Taiwan. The population of Taiwan is more than 23.5 million people, and many of them will surely leave the island if China decides to return it to its control by force.

Demand for cryptocurrency from residents of Taiwan and other Asian countries may increase sharply in response to the tightening of China’s expansionist policy. China will certainly closely monitor the reaction of the United States and Europe to the Ukrainian conflict to understand what to expect in the event of Taiwan’s accession.

We should not forget about Iran and North Korea, two powers that are actively developing their nuclear programs, which in the future may provoke a crisis in the respective regions and also force people to move. Cryptocurrencies on “flash drives” will become a very convenient tool for transporting capital.

3 advantages of cryptocurrencies

Cryptocurrencies have three advantages that make them a good asset in turbulent times:

Digital currencies are a highly liquid asset traded on various exchanges.

The digital wallet is easily transported, and it is also protected from government interference.

The security of tokens is provided by a password or a digital key known only to the account owner.

The ideology of cryptocurrencies is based on a “libertarian” model, assuming the transfer of control over the money supply to ordinary people. Digital currencies are global, interchangeable, mobile, evolutionary and revolutionary products of financial technologies.

Unfortunately, humanity has not been able to abandon the concept of war. As the American Civil War general William Sherman said, “war is hell.” More than a century has passed since then, and it’s still true.

However, cryptocurrencies can simplify the movement of capital. If global geopolitical conflicts continue to flare up, digital tokens can become one of the leading tools for refugees. Paradoxically, the threat of war can benefit cryptocurrencies.

The 34th US President Dwight Eisenhower was the last commander-in-chief of the country who had real experience of military command. As the leader of the “free world”, he once said: “I hate war in a way that only a soldier who has survived it can do, who has seen all its cruelty, futility and stupidity.”…

The 34th US President Dwight Eisenhower was the last commander-in-chief of the country who had real experience of military command. As the leader of the “free world”, he once said: “I hate war in a way that only a soldier who has survived it can do, who has seen all its cruelty, futility and stupidity.”…