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Edited by 977Iti at 22-12-2023 11:02 AM
Escalation of Israel-Palestine Conflict, Safe-Haven Assets Strengthened, Will Bitcoin Experience a Surge?
Never think that events happening far away have nothing to do with you. As cryptocurrency investors, we need to be sensitive to significant international events happening right now, as they may present both risks and opportunities.
For instance, a large-scale armed conflict has erupted between Israeli and Palestinian armed groups, resulting in the deaths of 1,100 people on both sides, and the conflict is ongoing.
Let's not discuss who's right or wrong, but let's look at the reactions of international investors.
Some analysts predict that this Israel-Palestine conflict might lead investors to turn to safe-haven assets, and the rising geopolitical risks might encourage investors to buy assets like gold and the U.S. dollar.
From a perspective of safe-haven assets, Bitcoin is also favored.
Besides the U.S. dollar and gold, Bitcoin is also considered a safe-haven asset, and in some ways, it's even a superior one.
Because the U.S. dollar can be infinitely printed, and the future gold mining quantity is unknown.
Bitcoin, on the other hand, has a fixed total supply, with only 21 million in existence worldwide. Not only is the total supply fixed, but the issuance rate is predictable, continuing until the year 2140, and its inflation rate continuously decreases.
Both the total supply and inflation rate are algorithmically constrained, which provides Bitcoin with stability and predictability.
Furthermore, Bitcoin is decentralized, and as long as you control your private keys, no individual or organization can confiscate or seize your Bitcoin assets. It has a strong resistance to regulation, making it entirely your asset.
Fiat currencies rely on government credit endorsements, such as the U.S. dollar benefiting from the strong credit of the U.S. government to circulate globally. Bitcoin relies on a new form of credit called "technological trust."
While government credit can be powerful, it's subject to manipulation, such as theoretically unlimited issuance. Bitcoin's technological trust is open and transparent, not subject to manipulation, making it more convincing and stable than fiat currency.
So, whether it's a war or a major financial crisis, Bitcoin can be seen as a high-quality safe-haven asset. Furthermore, Bitcoin has substantial potential for appreciation in the future, making it worth considering for our portfolios.
The Israel-Palestine conflict not only highlights Bitcoin's safe-haven properties but also has a significant impact on the cryptocurrency projects based in Israel.
Israel, as a technology powerhouse, plays a crucial role in the cryptocurrency field, housing many cryptocurrency companies. For example, StarkWare, one of Ethereum's Layer 2 solutions, has its headquarters near Netanya, Israel, which is less than 30 kilometers from Tel Aviv, a city that has been hit by rocket attacks. Many cryptocurrency users are concerned about the safety of StarkWare. In response, Wind Rider, a community manager for Starknet, has confirmed that the Starknet team and its members are safe.
Bancor, one of the earliest Ethereum DEXs to adopt the AMM mechanism, also has its primary team based in Israel. Due to the Israel-Palestine conflict, Bancor's platform token BNT surged from $0.4 to $0.69, with a recent peak of over 70% growth in the last 24 hours. It has since fallen back to around $0.58, still with nearly a 50% increase.
In addition to StarkWare and Bancor, other cryptocurrency projects like Simplex, Chain Reaction, and Ironblocks also fall under the Israeli sector. Interested parties can continue to explore these projects.
Of course, this is not about chasing prices higher but extracting factors that affect cryptocurrency prices from significant events. Understanding the logic behind the impact on cryptocurrency prices will increase our sensitivity to related news events, enhancing our investment capability so that we can seize more opportunities in similar events in the future. |
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Post time 17-10-2023 13:53:58
