War Impact On Crypto
"Cryptocurrencies, known for their decentralization, often remain stable during regional political instability. However, their volatility makes it unpredictable how they'll perform during wars. Notably, Ukraine raised $33.1 million in crypto donations during the Ukrainian crisis, showcasing their adaptability in times of need."
Ralph Fontones
10/11/20231 min read
The impact of war on the cryptocurrency market is a topic of interest. While there is no clear consensus, it appears that cryptocurrencies remain largely unaffected by regional political instability. The core principle of decentralization allows cryptocurrencies to function globally, irrespective of regional political instability.
In some cases, cryptocurrencies have been used as a means of funding during times of war. For example, during the Ukrainian crisis, the Ukrainian government requested donations in crypto from investors globally. Since then, Ukraine has collected more than US$33.1 million worth of digital assets as of March 1st, 2022.
It is important to keep in mind that cryptocurrencies are still a relatively new asset class and are subject to high volatility. Therefore, it is difficult to predict how they will perform in times of war or other global crises.