Intercontinental conflicts are poised to test whether Bitcoin is truly “digital gold” in the eyes of those living in cryptocurrency-savvy regions.
Noelle Acheson, author of the book “Crypto is Macro Now”, suggests that controversial elections in Venezuela and fears that the conflict in Gaza will spread to Lebanon could significantly affect the price of Bitcoin. Acheson noted that geopolitical instability typically drives investors into “safe” assets such as gold, which has risen 1% since July 26.
“Citizens of both Venezuela and Lebanon are very familiar with crypto as a payment mechanism and store of value,” Acheson wrote, noting that despite their small market size, any shift towards Bitcoin in these regions could draw attention to its non-speculative uses.
Under the leadership of Nicolás Maduro, the Venezuelan economy faced a serious collapse. Amid this turmoil, both ordinary citizens and the government struggling against US and EU sanctions have increasingly turned to cryptocurrencies.
Maduro claimed victory in the latest elections on Sunday, but opposition parties disputed this and presented data they claimed indicated a landslide victory in their favor. The New York Times reported that leaders of both parties called on their supporters to protest.
The United States has reportedly urged Israel to refrain from retaliatory strikes against Beirut, according to Reuters.
Lebanon has witnessed significant crypto usage due to its economy affected by hyperinflation. Wealthy individuals often use stablecoin brokers to manage their finances, predominantly using USDT on the Tron network.
*This is not investment advice.