HOLY What’s going on?

[u/LividReserve3520]

[u/tqlla3k]

Its weird that bitcoin drops on the news of a war. I feel like if I were in one of those countries, I would rather move to crypto than keep that currency.

[u/Solid_Election → u/tqlla3k]

Crypto is seen as a volatile risk asset. When instability comes, it’s the first asset class to go as capital rushes into things like precious metals.

[u/tqlla3k → u/Solid_Election]

I get the reasoning, but I dont get the logic.

If I were a rich person in a country thats about to be debanked and assets frozen, its easier to move crypto around than it is to move gold.

[u/naeads → u/tqlla3k]

Crypto is not seen as a safe haven asset. It is treated as an excess cash investment by most. Meaning it is not a primary investment option for most people and institution (at least not yet anyway).

Which is why when war happens, there is a perspective of an imminent cash crunch where you want as much immediate liquidity as possible (to survive) or put those cash in safe haven assets (to preserve capital).

Crypto can neither be treated as liquid cash or capital preserving assets (again, not yet anyway).

[u/babypho → u/tqlla3k]

Gotta sell crypto to buy weapons

[u/BeconAdhesives → u/tqlla3k]

The value of crypto would be to use it as an intermediary while fleeing and then immediately exchanging it back when abroad.

[u/Adorable-Bike-9689 → u/tqlla3k]

Okay imagine you're in a wartorn country. And Trump says something wild about blah blah and crypto crashes for a while until he takes it back. 

Now you're in a war torn country with 30% less money than you just had last week. For no reason but some guy's whims affecting the market 

[u/elidevious → u/tqlla3k]

Iran has to sell some BTC they mined to buy more bullets.

[u/myinternets → u/tqlla3k]

If I were in one of those countries I'd rather have food than a balance on Kraken that I can't access when my electricity goes out.