Recent debate about Bitcoin as a safehaven against geopolitics is supported by consistent buying demand for the digital currency. Furthermore, at key junctures in the War on Terror, Bitcoin has increased precipitously, with its best-known price rises coming during heightened geopolitical conflict. For instance, Bitcoin’s first memorable price increase took place as military conflict in Libya picked up.
Recent events have been no different as, despite consistent discussion about concerns over the bitcoin technology itself, the price has increased. Geopolitical tension is on the rise worldwide, and Bitcoin has consistently reached all-time highs.
Russia stopped a Security Council statement brought forth by the U.S. on Wednesday to express disapproval of North Korea’s missile tests. China signed off on the measure.
“Russia is slowing this down, and it is not clear why,” the diplomat told CBS News. “The U.S. wanted to get the message out.” North Korea’s failed missile test launch on Sunday mushroomed geopolitical tensions between President Donald Trump and Pyongyang.
U.S. Vice President Mike Pence said Wednesday that the U.S. remained committed to its allies but that it would overwhelmingly respond to any attack.
The U.S. military intercepted two Russian bombers in international airspace off Alaska’s coast earlier this week, as two F-22 Raptor aircraft intercepted the Russian TU-95 Bear bombers. Navy Commander Gary Ross, a Pentagon spokesman, called the intercept “safe and professional.” Further, U.S. economic data did little to encourage and confidence in the Trump administration on tax cuts have waned in recent weeks.
All this should be considered bullish for Bitcoin. Two months after U.S. military action in Libya, Bitcoin begins to increase from approx 90 cents to $32. The United Nations called for “an immediate ceasefire in Libya, including an end to the current attacks against civilians, which it said might constitute crimes against humanity … imposing a ban on all flights in the country’s airspace – a no-fly zone – and tightened sanctions on the Qadhafi regime and its supporters.”
The price of Bitcoin fell to $4 by the end of 2011, as the U.S. military withdrew from Iraq thus ending the Iraq War on December 18. By the November 2015 Paris Attacks in France, which killed 139 and injured 352, the Bitcoin price had reached the 300 handle.
There’s been little to inspire confidence in global relations and economy. Since November 2015, the bitcoin price has increased beyond $1,000 and the gold price, further inspiring confidence in its possibilities as a safehaven medium.
Gold and silver have long been considered safehavens by investors, who purchase such assets to protect their investment portfolio from global geopolitical uncertainty.
Digital currencies like Bitcoin offer borderless and secure payments. While legacy currencies and payment system are susceptible to capital controls and currency manipulation, many believe Bitcoin is not. This leads to confidence in the digital currency as a potential safe-haven to stave off economic uncertainty.
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Last modified: May 21, 2020 9:55 AM UTC