BitcoinSpotlight

Bitcoin Price & Adoption is Gaining Strength – Geopolitics to Thank For

Conflicts such as U.S.-Iran sanctions affects the overall global financial system. With a decentralized network like bitcoin, this is not the case, since it is not owned by any government or corporation. All the trouble that politics across the globe is making in the fiat world is only strengthening the case for decentralized currencies and an ignored factor that is trying to push bitcoin towards an effective bull-run is geopolitics.

Highlighting the role of geopolitics in establishing a bullish ecosystem for bitcoin, BlockPublisher recently got in touch with Daniel Popa, founder and CEO of Anchor as he stated:

The current tensions surrounding the US-China trade war combined with oil sanctions against Iran and the threat of a potential oil crisis, are working in favor of a bull run for bitcoin for the remainder of 2019 as investors will likely park their holdings into BTC amidst geo-political uncertainty.

Claims regarding bitcoin price crossing its all-time high (ATH) when it almost touched $14,000 are now mitigating. Some are even suggesting that bitcoin is likely to show a bear behavior for the rest of 2019. After rising from the lower $4,000s of April’s start to over $10,000, bitcoin price is currently stuck in the vicinity of this $10,000 mark and at the time of writing, it is at $9,575, showing a 0.58% increase in the past 24 hours.

The world is clearly oriented around the construct of money. As of now, fiat has dominated the flow of money across the world and it is controlled by banks at its back-end. For example, the USD is controlled by the Federal Reserve and other countries usually have their own central banks to control their own native currency.

The flow of fiat money across the globe has to conform to the policies, presented forward by the respective countries and banks. The entire global monetary framework is centralized around various entities, controlling and regulating it. Dominant and well-developed countries thus can use their strong economy to suppress the weaker ones by implementing certain policies.

Crypto breaks these shackles and presents forward decentralized networks, free from any governmental control. The bitcoin network aims to put people in charge. Due to the decentralization aspect, there is no government or bank controlling bitcoin, and anyone from across the globe can chime in and become a node to maintain the network.

Since the bitcoin space is quite young being only a decade old, there are no concrete regulatory restrictions on it. By providing an alternative route towards accessing global markets, bitcoin and other cryptocurrencies provide assistance to countries struggling with their economies like Venezuela. Since the economy of Venezuela has collapsed, crypto has played a big role in establishing its authority on the ground, by providing an alternate route for performing monetary operations.

READ ALSO: Accept Petro Crypto – Maduro Orders Venezuela’s Premiere Bank

Secondly, bitcoin is not pegged to any commodity or any other currency. Countries like Iran are struggling to maintain their own currencies in a healthy competition with other countries. Since Iranian rial is pegged to USD, its devaluation hurts the country’s economy to a huge extent. With U.S. sanctions pressing down on the country, a rise in crypto usage has been witnessed in the country, highlighting how decentralized money networks bypass pressure exerted by certain countries and their policies. The country has even legalized bitcoin and crypto mining. If crypto adoption further increases due to geopolitical troubles, the demand for various cryptocurrencies is expected to increase the price of the digital assets as well.

READ ALSO: Iran Legalizes Bitcoin and Crypto Mining But There’s One Challenge Ahead

Currencies are usually backed by commodities such as gold, oil, etc. The shortage or crisis around these commodities triggers negative outcomes for the currencies linked with them. With bitcoin, there is no peg and hence, the circumstances around any particular commodity do not affect it. The geopolitical dependence shows fiat has its limitations.

Adding on to his statements to BlockPublisher regarding the prospects of a bull or a bear run in the latter half of 2019, Daniel also said:

In addition, the advent of Libra in the crypto scene, along with the growing number of new products and services with practical use-cases, primarily in fintech and banking, are helping to increase trust in crypto and are moving the needle of its total market cap. All this works towards solidifying the psychological barrier of BTC’s price above $10k USD.

Facebook’s Libra announcement has also made a significant impact in solidifying the credibility of the blockchain and crypto space worldwide. A more healthy ecosystem has now been developed for cryptocurrencies as compared to 2017.

For the latter half of 2019, even if another bull-run like 2017 is not witnessed, geopolitics and developments being made in the crypto space do make a strong case for bitcoin, maintaining to keep its price above $10,000 moving forward.

READ ALSO: Factors Behind 2019 Bitcoin (BTC) Bull Run: Speculations, FOMO & Halvening

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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