Is War Doing Crypto Harm or Good?

In times of war, there’s no doubt that people lose their lives, economies are destroyed, infrastructures and important things, however who benefits from it? Is it crypto ecosystem or the stock market? Because if you look at it, war creates fear in the system, especially the financial markets because it creates fear and greed in the market. Investors would want to pull out from the crypto market with the fear of it crashing due to volatility and invest their assets in somewhere safe such as buying gold and other governments bond on the stock market.

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On the hand, crypto has also proven useful in war because it has been used to quickly gather funds, donations because it’s fast and reliable. An example of it was the crisis during the Russia-Ukraine conflict where donations was sent to Ukraine using crypto, which was also a means of putting crypto on the map, highlighting it’s potential for humanitarian and financial aid for emergencies.

War appears to have a mixed impact on cryptocurrency, because there are pros and cons to it or however, it has both short-term and long-term impact. The short-term impact involves market instability, crypto dipping and experiencing bearish state, while the long term involves increases in awareness of decentralized financial systems and its ability to function when the normal or traditional system cannot.