Will Bitcoin Survive a Deglobalized Financial Ecosystem?

By April 20, 2022Bitcoin Business
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Deglobalization will eventually lead to a volatile Bitcoin price and market stature

The Russia-Ukraine war has adversely impacted the cryptocurrency market. The role of digital assets has never been this deeply explored as it has been since the beginning of the war. The Russian attack on Ukraine has quite vaguely, yet a bit evidently demonstrated that the crypto industry will eventually become an integral part of the financial and economic ecosystem in the world. The Ukraine-Russia crisis has enormously impacted the national and international economy, partially indicating deglobalization and a deglobalized financial system. If the economy is deglobalized, it will have adverse effects on the Bitcoin price, leading to a massive price fluctuation and volatility.

The disruption of the traditional markets amid extreme war-like incidences will lead to the return of fragmented trade routes and supply chains. Economists and crypto experts reveal that the conditions will eventually lead to the return of fragmented trade routes and supply chains. With BTC investors considering the crypto asset, as a hedge against inflation, the market might witness a massive rise in price and large bets on the cryptocurrency by market value.

Global institutions are quite wary about the role of cryptocurrencies and how they can potentially damage a long-established centralized infrastructure, hence, the EU suggested banning Bitcoin to ultimately suffice the requirements that Russia needs to fulfill against its attacks on Ukraine. Even though Bitcoin has not yet become a means of transaction, it can certainly be used to evade financial sanctions.

Governments around the world are trying to understand the effect of crypto on the economies in the long run. In a nutshell, Bitcoin has been the touchstone of controversy since it was first introduced. While it has the potential to decentralize and change the traditional economic infrastructure, it also possesses the power to provoke distrust and encourage malicious activities. Deglobalization will only enhance the actual functions of Bitcoin and also its market value.

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