Topic: The economics of war. How does this affect us all especially us in crypto? - page 3. (Read 711 times)

everything that is happening in the world now is a consequence of the cowardice and softness of the West, and its attempts to flirt with terrorists....
I will not tell about all of them, I will tell only the situations of recent years. In 214, the world decided to "ignore" Russia's terrorist attack on Ukraine. Decided not to interfere... Why should Merkel, for example, break contracts with Gazprom that are favorable to her personally? The money is flowing, everything is good, so what if they destroy Ukrainians - in Germany it is calm and comfortable.
Not so long ago, Israel trumpeted that it is impossible to soften the terms of sanctions against Iran, especially with regard to weapons. The EU came out with the initiative "and let's believe them, so what if they don't let us control the fulfillment of Iran's commitments"....

Until 2022, Russia repeatedly and demonstratively brings the EU to its knees by threatening to stop gas and oil supplies.  Europe becomes an obedient sheep and dances to the tune of the Kremlin. In 2022 Russia is trying to simply DESTROY Ukraine. And already openly declares - "EU is next YOU !". And here Europe realizes that this is not just propaganda, this is the real PURPOSE. Having started to help Ukraine, the EU meets with economic (oil/gas) terror, which after COVID-19 is very painful and hits the EU economy very hard. But thanks to Merkel's resignation, adequate politicians came to power and the EU found the strength and capacity to adapt and rebuild. Russia shot itself in the foot. Realizing that the war is headed for defeat, Russia starts sabotaging gas markets - blowing up Nord Stream and recently the Balticconnector pipeline.
They also provoke a new conflict in the east by siccing their "terrorist brothers" on Israel. Do you seriously believe that Hezbollah could have prepared such an operation on its own? The goal is simple - to distract the world from the tragedy in Ukraine, to unleash a major war in the east, in order to destabilize the region and ... yes yes yes yes - the oil market, which Russia has lost, and no matter how hard it tried - lost profit.
There is an ancient axiom in the search for criminals - "Find out who benefits". And the economic terror will continue for a long time until international criminal regimes and their puppets are destroyed in one way or another.  Conclusion: we should prepare for a new period of destabilization of the world economy. But do not seek agreements with those who came to destroy you or break your habitual life and ECONOMY. It does not sound pleasant, but it is better to know the diagnosis of the disease and treat it than to engage in self-deception....

Of course, it's hard for me as a Ukrainian to hear that the world is tired and bored with the war from which my country's suffering every day, and not that since it's a big country, the scale of this war is much-much bigger than the war of Israel against Palestine. In any case, I don't think the escalation happened 'cause the world got bored. If anything, I believe Hamas is controlled by Iran, and Iran is militarily friendly with Russia, so perhaps they've made some sort of deal to distract the world from Russia's activities by making people focus on how cruel Hamas can be.
The financial side of the op's post is reasonable, it's true that there's often a disproportionate interaction where a drone can take out something much more expensive, but also, looking at the Russian side here, a relatively cheap drone can trigger a much more expensive spending on an air defence missile on it. These things can make drones much more popular in the military in the future, but, to be honest, I don't think that has any impact on the crypto market or on the global economy in general.

Yes. and It gives us the right to buy and own digital currency at a set price which can also be considered an investment option as well. which can increase in value either very quickly or slowly as the asset appreciates.


The real world trading.


A good message from you and what is clear is that in the future there will be many riots in many places and it could be that 2024 is just the beginning, coupled with changes in natural conditions that are less friendly.

However, for somebody who is living in a bombed 20-story residential building in Gaza, it probably doesn't matter whether your money is in cash or in Bitcoin. If your building is reduced to rubble, will your seed phrase written on a tiny piece of paper survive?

I know that a digital copy stored online, even if encrypted, isn't recommended, but facing a terrible war, invasion, or bombardment, would it be wiser to keep a copy online?

Anyway, I think this conflict is much more about the shift in military gears or certain economic motives. This is basically about long-standing hatred.

I also hope and pray for peace, everywhere!

Being decentralised the market won't be much affected, even in this situation impact can be experienced as the bitcoin market is working with some sort of connection with the traditional system to some extent. One such thing happened with the Ukraine-Russia war, exclusion of Russian banks from the global Swift system. This restricted the cross border transactions and the usage of cryptocurrency increased and during those days more transactions and donations took place in terms of cryptocurrency. This marked the market to be bullish to some extent, further the regular pattern of growth took place. Even with the ongoing Israel-Palestine war cryptocurrency have come into discussion, as Israel authorities have frozen cryptocurrency accounts connected with the Hamas Military group with the support of Binance. This step have been taken to restrict the illicit usage of bitcoin. Hamas considered as a terrorist organisation looks for more opportunities as the traditional financial systems were tightened to support its activities.

I guess you are doing the same thing too? I don't think this will encourage people to start investing, it will fool the masses into thinking that this is the end, many weak hands will sell and stay away from crypto, only smart people will see this war as an opportunity, just like how the covid virus played out, since I've learned my mistakes in the past, I now sees this as a buying opportunity, I am just been greedy when others are fearful.

I was honestly waiting for something like this to happen, I don't hope for war though but a black swan event? Yes of course, I will just keep dollar cost averaging into 2024 and probably take my rest after Bitcoin halving and two months after, I am doing all these based on what we've seen in the past with crypto.

There is this asset that I invested into since last year, and just because the CEO is from Israel the investors of the project are already in a panic mood, they are selling even while the project is very strong right now, one of the most talked about in the space now, yet people ate getting out, after doing my own research I see that the CEO isn't even in Israel but Massachusetts.

We have seen cases of war having effect on the economy, one of the effect of war in the economy is inflation. The Russia and Ukraine war is a typical example. Because of the war, Russia no longer have aid they usually get from other countries. This will some how affect their economy one way or the other. War indirectly affects the world economy too it may seem like it not but it is, the money used in funding the war is governmental fund which can be used In other sectors of the economy. We saw a complete twist on Bitcoin going down when the Russia/Ukraine war started, war can have effect in the crypto space as well. War doesn’t benefit any sector of the society rather it brings heart breaks and loss of life and property.
  Currently we are seeing the dreadful event happening in Gaza, how lives and properties that took years to build are being destroyed in just a split second, War brings nothing but destruction. Same way it has physical effect on the economy, it can also affect the crypto space too, we have some whales in the crypto space who are secretly funding this war. And we know once a whale or two whales tries to sell, it’s affect the market also. This will cause the price of asset to reduce, which can affect you that’s knows nothing. This is why we need to be involve in listening to news and listening to financial experts. Bitcoin still a save place to save your asset though.

I can't speak about the politics or the war because it is a two sided thing and there will be a lot of people from both sides that will attack me if I pick one side. I do not want that, I do not care about your ideas, there is one thing I care about and that is death. This type of war or all wars basically, result in death and that is always unreasonable.

If there are people killing each other, then I do not care about ANY reason that you are giving, whichever side ends up killing someone is doing something wrong. I do not care who started it, all I care is who ends it and I want it to end. I want this one to end, I want Ukraine vs Russia to end, I want all wars and all killings to end in the world. Financially speaking this is beyond something we can calculate, it is just doesn't have a value attached to it, a human life can't worth anything put to fiat terms.

Of course, in the context of OP titles, economic wars affect the market for cryptocurrency, and I have proof of this in the current war between Israel and Hamas. (The cryptocurrency market has also been affected). And this is the main reason, thanks to which I believe, that the economic war also affects the cryptocurrency market. Obviously, the country that has been involved in cryptocurrency must sell its assets in its bad times to meet war reasons or basic needs, just like the selling pressure entered the market due to the war between Israel and Hamas, and the market went down by 2%. It is a small state, due to which some effect was seen; if it starts a war between big states, then its effect will also be big. And now, I think, due to the conflict between Israel and Hamas, there is a risk of the intrusion of a big country in between, and if the matter deteriorates in this way, then everything from the economy to the cryptocurrency market can be affected.

More persons who are not yet investing in crypto will consider it more with all this crisis and them seeing how easily other physical assets can easily be destroyed and lost, and how safely one's assets can be with crypto especially bitcoins.

For us already in cryptocurrency, the entire situation of the crisis and how easily we understand that it can spread gives more reasons to want to invest more in this asset which is bitcoins.

Sometime ago I made a thread on War who benefits and how, just trying to understand what has been the benefits of these war in Ukraine and Russia both for the inside and the outside world; and now on the intense is Isreal and Palestine. And now @philipma1957 your op has given me a clear insight to that.

With the constant development of technological weaponry a market has been established and the cost of keeping this market booming is by the planting and
underground  sponsorship of war in different places because without wars countries would have no need for these weapons and the market won't make money.

 This is why certain conflicts that ordinarily have supposed to have ended keeps flaming up just when we think it's about to see peace.

Having crypto right now is safer and important to having physical assets, however with the wars and all the bombardments it therefore increases the burden of search for a safer place to keep your seeds phrase so it doesn't get destroyed leading to loss of our crypto assets as a result of having the position we hid out seeds phrase hit by a drone attack.

I also stand for peace... For only peace can save us.

You have asked a very salient question but let me think outside the box in providing a response. Yeah this new method of attack will ultimately alter the value of physical assets but may not  have an increasing effect on crypto asset.

For in times of war what's important is survival and apart from not being hit by a bullet or an airstrike you will definitely be hit by hunger. Hence people with crypto assets will be force to sell to enable them have cash to access food for survival of not just their self but family's. And this doesn't look good for crypto assets opposed to an increment.

If there is no war, then the leaders/politicians don't have any other point to play the dirty political game.

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From a crypto user's perspective, we can say that the digital assets will not be affected during war, conflict between borders so if we got the opportunity to move we can take away all our net worth in our hands which is not even possible in any other investment medium.

And this attack proved that governments are spending billions of our tax money for something that will be absolutely useless with the technology advancement, and we have been robbed for our entire lifetime for no reason.

I am sorry for your loss, many people lost their loves ones in the 911 attacks and that gruesome effect scared me even when I was not living in United States then, see what happened with the Talibans and Afghanistan? After years of soldiers deploying into the country these people still end up winning, if the soldiers weren't called off it means the Taliban's will still be active in their dens waiting for the right time, yet Bitcoin was very much alive then, it makes new all time high still when the war was ongoing.

I am not happy about the war on Israel but the information I gathered says as of October 9 there is no report of any ongoing war on Israel and on October 7 the prime minister of Israel met with the Palestinian president to discuss ways to improve relations between the two sides.

Yet it's all over the news that Hamas struck Israel and at least 700 people were reported killed in Israel and even 400 in Gaza, I don't know what to believe anymore online, I doubt this will affect crypto on the long run, unless more countries join.

I don't think it's safe keeping recovery seed in an email, how do you tend to secure your seed phrase this way?

In every form of advancement we were able to see the transition taking place in size and power. Most of the time the size used to go down whereas the power used to be more stronger. One such incident that strikes my mind after seeing the incident is an experience I had while viewing a 1080p video. Connected a drive to my desktop and opened the particular video file. It didn't play on the monitor as it doesn't support 1080p video. The same file works flawless in my mobile device. So the advancement is trying to keep everything handy and in a much powerful manner.

I think the war economy will have no effect on crypto is not under anyone's control but will increase the demand for crypto. The wars also affected the interest rates charged by banks and other creditors to borrowers this is the result of war spending financed entirely by debt which has contributed to a higher ratio of national debt to gross domestic product and subsequent long term interest rate increases while fiat currencies suffer. Nowadays every people are very aware about bitcoin and they know the use of bitcoin which will help a lot to reduce the danger long term investment will yield better results.

This war has shown that no investment is void of risk. I watched the way a missile made a skyscraper crumble within a few minutes and it became clear that even the real estate sector is not safe. The increase in natural disasters like earthquakes and flooding has also brought to the limelight the dangers of investing in physical assets. I am sure that people will consider the benefit of investing in crypto assets due to the uncertainties associated with physical.  But this will only be possible with an increase in Bitcoin awareness. People need to know about Bitcoin and some of the benefits it offers. Holding crypto assets during these trying times also has some level of risk as discussed in this thread Keeping or recovering seed phrases during or after a natural disaster, but it is a good option.

Since you mentioned this equipment worth $5,000 that destroys a Russian tank worth $1 million (I expect it to be a drone), you can also add to it the equipment that Hamas used in its recent operation against Israel, which was called (Al-Aqsa Flood).

                   

This picture is of a glider called (Delta Plane) that was manufactured locally by Hamas. This primitive equipment, which costs a few dollars, canceled the work of the Israeli Iron Dome and air defense systems that cost billions of dollars, because these advanced radars and equipment are unable to detect this primitive equipment.

Therefore, I hope that these incidents will be a lesson for political and military leaders to stop spending more billions to manufacture more advanced weapons of killing and destruction.

I hope peace prevails throughout the world.

As far as I am aware, Hamas launched 5,000 missiles at Israel during the initial invasion by Israel against Palestine. Of course, Israel's prime minister has declared war, claiming that Hamas and Israel are actually at war. And while this is not ideal, I only wish that fewer people would be impacted by the strife in those two nations.
https://www.timesofisrael.com/hamas-commander-says-attacks-are-in-defense-of-al-aqsa-claims-5000-missiles-fired/

Even while the conflict with Russia has not yet been resolved, it has only intensified. I simply hope that the global internet and energy are unaffected because if they are, it would undoubtedly give our crypto fanatics a lot of trouble.

Now we seem to have entered the cold war era where countries in the world have created their own axes and can trigger war at any time. Of course, no one wants war because it will result in huge losses for those fighting and those around them. However, if escalation continues to increase and all parties are unwilling to reduce tension, we will not be able to avoid war.
We can already imagine that if countries and axes in the world went to war, it would not only disrupt the global economy but also affect the crypto market. Most likely because of this, the crypto market will crash which will cause quite massive losses and quite a lot of crypto-enthusiasts will fall into poverty because of this. Nobody wants this to happen, but in the worst case scenario it might happen.

OP It will definitely affect all crypto enthusiast negatively, how?

1. We wont be able to pay for things using our crypto because of lack of electricity and so wont have access to the internet. (This can be observed mostly in countries that accept crypto as a means of exchange).

2. We have been expecting mass adoption of crypto which is happening gradually. So the presence of war would reduce mass adoption of crypto, even as of now most society are still struggling to accept crypto because of their government policy so this might discourage the government to discard cryptocurrency entirely in their country.

3. Also for those countries that might be affected during the wars there might be government sanction or ban on crypto so many investors within those courtly because of the ban might lose their investment due to the fall of price. Most times some exchanges will refused withdrawal for person from those countries. This is why its advisable to keep your crypto portfolio in wallets and not exchange, because no one prays for things like this to happen but life is not fair, unpredictable things do happen unknowingly.