Will crypto do well if the world economy falls apart?
People have been using fiat money for a long time. Today, this traditional fiat currency is deeply rooted in the global financial system and is used everywhere. It is controlled and managed by banks and governments all over the world.
This means that these powerful middlemen can do anything they want with our money. You wouldn’t be wrong to say that we don’t have financial freedom and are at the mercy of these institutions. We have to prove who we are, pay high fees, and wait days for transactions to be finished.
These institutions and middlemen have the power to stop fiat currency from being used in areas where there are ongoing conflicts or in countries that don’t follow the rules.
For example, the West has put Russia on a financial leash because of its mistakes in Ukraine. Russia has been cut off from the world’s financial system and hit with sanctions all over.
Cryptocurrencies Have Been Better Prepared
This is where cryptocurrencies come in to save economies that are being bullied. Cryptocurrencies operate outside of the global financial system and are processed online without the help or approval of powerful middlemen like banks or governments.
This makes sense when the value of cryptocurrencies like Bitcoin goes up because there are more wars around the world. These places are in financial trouble, so they are looking to cryptocurrencies for money.
Carl Runefelt is a cryptocurrency expert who has put money into more than 360 cryptocurrency startups. He said on his YouTube channel, The Moon, “Bitcoin is going up year over year, and in times of uncertainty, we’ve seen that more and more people are turning to Bitcoin as a form of money and a place to store value, because Bitcoin is the only money in the world that has nothing to do with politics.” Your bank money can be frozen and your gold can be taken away, but with Bitcoin, you can literally cross a border with your private keys in your head and travel the world with millions of dollars stuck in your head. It has never been possible to do this before.
Regions with a Surge in Crypto Investment
After the West tried to suffocate Russia and cut it off from the traditional financial sector, wealthy Russians have turned to crypto investments as a safe haven.
The contemporary Russia-Ukraine conflict has proved that cryptocurrencies can be used for fundraising in military conflicts. Not only has Russia been getting a lot of help in crypto, but so has Ukraine. You’ve probably heard of the “crypto fund of Ukraine.”
Not only that, but the recent sale of a no fungible token (NFT) of the Ukrainian flag for around $6 million in Ether crypto was one of the most notable successes.
Other troubled places in the Middle East, like Libya, Syria, and Palestine, saw a huge increase in crypto searches online. This was a clear shift away from traditional stock markets and safe investments like gold and real estate.
Carl said in one of his interviews, “Gold is much better than fiat, but Bitcoin still has a huge advantage.” This is because the amount of gold available is slowly growing, but it is growing. Since there are only so many bitcoins, this is a small advantage. With the click of a button, you can send Bitcoin to someone else. But if I have to send a million dollars’ worth of gold to another country, it might cost me more than the gold itself. The bigger the number, the harder it is to send.
Support from very wealthy investors
Whenever powerful, wealthy investors and business owners back cryptocurrencies, it gives them a boost. It keeps the crypto bubble from popping, if it is a bubble, as some say. Instead, it gives crypto a new lease on life.
For example, the value of cryptocurrencies went through the roof when Elon Musk of Tesla said that the company would soon accept Bitcoins as payment for its products. A single tweet from such well-known people sends the price of cryptocurrency straight through the roof.
In the same way, when Tesla bought $1.5 billion in bitcoin, the price went up to almost $43,500.
Will cryptocurrency do well in the near future?
Many experts are now sure that crypto will be the most important thing in the near future. The time is coming when cryptocurrencies will replace fiat money as the main form of currency around the world.
We are now in the digital age. This means that only those digital innovations will be around in the future. The rest will soon die out. Cryptocurrencies are some of the best-known innovations in the digital world. Even though many people are against it, they will win.
If the world economy crashes, the value of cryptocurrencies will only go up, and more people will start using them than ever before.