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Crypto Community discusses Warfare and Crypto in Ukraine

Crypto Community Discusses Warfare in Ukraine, Importance of Crypto, and the Future of Bitcoin

During the course of the early morning trading sessions on Thursday (EST), 24-hour statistics show the crypto economy dropped more than 11% in value against the U.S. dollar. While the leading crypto asset bitcoin shed close to 10%, a myriad of alternative digital assets lost close to 20% in value. The crypto market downturn is being blamed on Russia invading Ukraine’s borders as Russian president Vladimir Putin’s troops entered the country before dawn on February 24. Many crypto enthusiasts have differing opinions on the current geopolitical risks and their future impact on the digital currency market.

Russian Troops Invade Ukraine, Crypto-Economy Loses 11% Overnight, Bitcoin Advocates Discuss Geopolitical Risk

Following the report Bitcoin.com News published on Wednesday evening (EST), media reports disclosed that Russian troops have invaded Ukraine and acts of war have been committed. Although the exact scope of the attack remains unclear, reports suggest that cruise missiles were fired and that there were a few explosions near Kyiv’s international Airport.

Yesterday’s news desk report stated that geopolitical tension caused the entire crypto-economy to lose . At the time of writing, the entire crypto-economy has lost 11.1%, and just before Thursday’s opening bell, futures indicate that Wall Street stocks are in for a volatile day of trading.

What happens with bitcoin and crypto during war. We’ll find out. It’s history.

— DaBean (@HoneyBadger10) February 24, 2022

Meanwhile, cryptocurrency advocates are discussing the Russia-Ukraine situation in great detail. They also discuss theories about the future for crypto markets amid the escalating conflict.

For instance, the “reformed hedge-fund manager” and bitcoin proponent James Lavish told his 18,000 Twitter followers: “If you’re selling bitcoin here because of fears of war and civil unrest, you have absolutely no idea what you own and why it is so vitally important for the world at this very moment.”

FTX CEO Samuel Bankman-Fried also discussed the situation in Ukraine and he stressed that war is “really bad for the world.” Bankman-Fried further noted that Eastern European financial systems and currencies were feeling the wrath of the storm.

“It makes sense that stocks are down,” the FTX CEO said. “War is, generally, bad. What should BTC be doing here? People have less cash if the world becomes more shambolic. Basically, selling BTC — along with stocks, etc. — to pay war

The FTX executive added

On the other hand, this is likely destabilizing for Eastern European currencies. This is also likely to destabilize Eastern European financial markets. They might also be considering alternatives. Where would you put your money if you were to travel to Ukraine right now?

Many crypto supporters continued to emphasize that, despite market chaos, censorship resistant cryptocurrencies are vital in times like these.

“There’s a war going on outside,” an individual wrote on Twitter. “Tempted to think that crypto doesn’t really matter. But that’s BS. The endless wars will continue as long as the world continues to be fueled by traditional money printing machines. Blockchain tech and Bitcoin adoption [and]. This will allow the nation-states to separate from the banks .”

.

BREAKING: USA to limit Russian trade and business in USD

— Bitcoin Archive (@BTC_Archive) February 24, 2022

“It’s not World War III, it’s the best time to jump into bitcoin,” another individual tweeted. Microstrategy’s CEO Michael Saylor replaced the old “give peace a chance” adage with the word bitcoin and said: “Give bitcoin a chance.”

Peter Schiff, Others Expect the Fed To Change Its Tune

Officially, Peter Schiff, a gold bug and economist, gave his opinion about the Russian invasion, Fed, gold and bitcoin.

“Perhaps, the Fed is relieved that Russia invaded Ukraine as now it has an excuse not to raise interest rates in March,” Schiff tweeted. “If it weren’t for this, it would have been something else. But as far as excuses go, this one’s hard. Gold spiked 1.5% and bitcoin dumped 5.5% on the news.” Schiff wholeheartedly believes that sanctions on Russia could end up making inflation jump even higher for Americans. Others agree with Schiff, and believe that the Fed won’t accept fiscal responsibility following the Russian invasion.

One crypto advocate on social media insists:

Inflation gets worse during war, not better. I predict that any attempt at fiscal responsibility by Fed will be thrown out the window. #Bitcoin.

The conversation about the Federal Reserve is linked to the March rate hike. While the Federal Open Market Committee (FOMC) told the press it would raise the benchmark interest rate “soon,” Fed chair Jerome Powell remarked to the press that it would likely happen during the March FOMC meeting.

Fiat is war. #Bitcoin is peace pic.twitter.com/wDKGn1XEI9

— Belief_BTC[B] (,)(,) LNP/BPRGB (@Belief_BTC) February 24, 2022

If the U.S. central banks raises the bank rate, the equity and cryptocurrency markets may see more sell-offs. Schiff and others have mentioned that the Fed may not raise the bank rate or halt the tapering large-scale monetary purchases due to the Ukraine crisis.

What do you think about the geopolitical tension between Russia and Ukraine and the adverse effects on global markets? Comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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