If the conflict in the Middle East escalates, there are a few key factors I would look at when choosing cryptocurrencies to invest in:
1. Bitcoin (BTC): This is the first and most well-known cryptocurrency, which is often considered “digital gold.” In times of geopolitical instability, Bitcoin may become a popular asset for hedging risks, similar to how investors traditionally turn to gold during times of crisis. Bitcoin’s strong position in the market and its liquidity make it a reliable option.
2. Ethereum (ETH): Ethereum is also a popular choice due to its ecosystem of decentralized applications and smart contracts. Even amid global turmoil, projects like DeFi (decentralized finance) continue to attract attention, making ETH a sustainable asset for long-term investment.
3. Stablecoins (e.g. USDT, USDC): In the event of sharp volatility in the cryptocurrency market, stablecoins pegged to the US dollar can be a great option for preserving capital, as they are protected from sharp price fluctuations. Stablecoins provide security and liquidity in uncertain times.
4. Coins with enhanced privacy features (e.g. Monero or Zcash): With increased scrutiny and sanctions on countries involved in the conflict, cryptocurrencies with high levels of privacy may become more popular for protecting financial transactions.
5. Low-Power Blockchains: In the face of a potential energy crisis caused by the conflict, cryptocurrencies that require less energy to operate (such as Solana or Avalanche) may gain an advantage. These networks use more energy-efficient algorithms and may become more attractive to miners and users.
So I would consider investing in Bitcoin as a primary store of value, Ethereum for long-term innovative projects, and stablecoins for short-term protection from
volatility.
