In times of war, traditional markets typically experience high volatility and economic instability. Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) may serve as alternative assets for investors looking to hedge against fiat currency devaluation or stock market crashes.
Crypto’s decentralized nature could make it an attractive option during conflicts, where governments might impose capital controls, seize assets, or freeze bank accounts. People may turn to crypto for transferring funds or preserving wealth outside of government oversight.
Countries facing international sanctions (like in previous conflicts) might resort to cryptocurrencies to bypass global financial systems. For instance, Russia and Iran have explored crypto as a way to circumvent U.S. sanctions. A global conflict could accelerate this trend.
Crypto exchanges, wallets, and blockchain networks could be targets in cyber warfare. Hackers from state actors might attempt to destabilize the financial infrastructure of enemy states by targeting crypto platforms or stealing funds.
War often leads to resource shortages, including energy. Since cryptocurrencies like Bitcoin require significant energy for mining, global energy crises triggered by war could impact the profitability and viability of crypto mining operations.
While some cryptocurrencies may thrive during instability, others may suffer from increased volatility. Investors could flock to stablecoins like USDT or USDC, which are pegged to fiat currencies, in times of extreme global uncertainty.