Bitcoin has been considered by many to be a safe haven for their assets since the inception of the currency. The perceived safety presented by the coin is not only protection from financial crises of all kinds but also the political tensions that exist across the globe. In some cases, political events that resulted in problems for other markets actually resulted in a mini bull run for Bitcoin.
The latest political event that is set to have a profound effect on Bitcoin and other financial markets is the assassination of Iranian military commander Quasem Soleimani. This is a development that could easily lead to a large-scale war.
Many followers of Bitcoin believe the coin thrives in environments that include a financial crisis of some kind. One reason for this view is the fact the coin was started following the 2008 financial crisis.
Author Andreas Antonopoulos, is known for his instructional book “Mastering Bitcoin.” In his book, Antonopoulos provides a tutorial for novice Bitcoin investors who want to learn more about the financial market. Antonopoulos recently explained in an interview that he believes the pending financial crisis that may result from the assassination will more than likely be more devastating to markets than the crisis of 2008.
Antonopoulos explains most of the problems in 2008 centered around the real estate market. He goes on to say that today’s crisis is set to touch all financial markets.
Antonopoulos says that a recession would have the immediate effect of causing crypto markets to crash. He explains that during tough financial times that much of the money submitted to a market by venture capitalists and other investors will dry up. This is because it is a natural tendency for people to pull back their money when they fear the effects of a financial downturn. Antonopoulos says if the recent assassination proves to be the last incident necessary to instigate a recession, the money will be pulled back from cryptocurrency along with other investments.
Antonopoulos says there are a number of possibilities for Crypto as the time in the recession moves on and one of these possibilities is the market emerges once again as an asset safe haven.
