Russian forces launched a large-scale invasion of Ukraine from several directions on Thursday.
Financial markets and cryptocurrencies fell as investors sought safe-haven assets. If the crisis gets worse, strategists said it could drop to $30,000.
It raised questions about the role of the virtual currency as a haven asset, a resource for the unbanked, and an authority-free zone. Here are the opinions of five leading voices in the industry.
The MicroStrategy CEO said that nation state conflicts create uncertainty, constrain production, weaken currency, cripple trade, and undermine credit.
He said that war creates inflation, cripples commerce, and makes bitcoin compelling.
What should we be doing here? People have less free cash if the world gets shittier. The CEO of FTX said that they were selling BTC along with stocks to pay for war.
This is likely destabilizing for Eastern European currencies. For Eastern European financial systems. They might be looking at alternatives. Where would you trust your money right now?
There are arguments for and against what should be happening to BTC right now.
There is a push and a pull, with fundamental investors buying and algorithmic investors selling, and on net, BTC ends up down 8% on the day.
We are probably in a new regime than we have been in in the last year and a half.
People often say that I shouldn't get involved in politics. The fight isn't about a particular token having a higher price over another token, but the core of who we are as an industry is political.
Our fight is to give people the power to be their own institutions, to be their own bank. Whatever that might be, to verify what previously could not be.
Melker said that "Bitcoin is a crappy tool for criminals but a brilliant one for charity and donations."
In a Substack post, the host of The Pomp Podcast said that the United States has to start considering what to do in a world where a large portion of the world doesn't use the US dollar as their reserve currency.
Russia and China would decide that the costs to use the current global reserve currency has become too high if there was a hypothetical situation.
The game theory leads us to the virtual currency. The most advanced user and holder of a global reserve currency that no single country controls is the next best option for being the producer and distributor of the global reserve currency.
The incentive leads to the realization that bitcoin will be essential for decades to come. The countries with large ownership stakes will have an advantage.
A Wall Street veteran shares 3 commodity-based strategies to leverage in this environment and explains why Russia-Ukraine tensions are unlikely to delay the Fed's campaign to raise rates.
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