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How Crypto Can Help Common People During War?

Crypto puts the power in the hands of people which can help them tackle war conditions.

The world is hooked to the Russia-Ukraine war as it impacts the global supply chains and financial markets.

But, the ones who are bearing the brunt of the war are the citizens and residents of the two aforementioned countries.

It does not matter which side is right or wrong and winning or losing, common people suffer the most. 

Money Becomes Inaccessible During War

In a war-like situation, one cannot even step out of the house, let alone go to a market to buy daily supplies. Access to basic amenities becomes restricted.

In that case, one should keep the monetary assets close as venturing out of a safe place becomes a life threat.

However, it is not easy to reach out to a bank to retrieve the assets, as a war in today’s time takes place not just in physical space but also in digital space. War collapses the financial institutions of a country. 

Crypto Can Provide Access to Money

People can resort to crypto during a war or similar situation. Digital assets held on a blockchain can be retrieved from any place in the world, as long as the network is alive.

One can transfer money seamlessly through them.

Furthermore, crypto is accepted internationally as a means of payment. So, even war refugees would be able to use them. Along with that, they can receive payments from any corner of the world.

A country crippled with cyber-attacks or cyberwar can also use crypto, as its nodes are spread throughout the world. Compromising such a network is quite difficult.

Moreover, sanctions can also hurt locals. Cuba adopted crypto for the same reason when the United States imposed sanctions on the island nation. Cuba is heavily dependent on remittances, so the US closed off international money transfer networks and services in the country.

Through crypto, Cuba was able to bypass the sanctions.

Hedge Against Fiat Currency Fluctuations

Crypto also works as an efficient hedge against the local currency’s price fluctuations during a crisis.

For instance, the Russian Ruble is currently 40% down from the last month. Ukrainian hryvnia posted a 7-year low, according to a Reuters report.

As the price of crypto is determined by the international market, incidents in a single or a few countries will not have a great impact on it.

The idea of crypto is to put the power in the hands of common people. To achieve that, crypto operates on a decentralized network called blockchain whose nodes are present in different locations worldwide. This makes crypto assets transnational. No single entity controls the network, so it cannot be manipulated easily, essentially decentralizing the power.

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