The recent geopolitical conflicts in Venezuela and Lebanon are testing whether Bitcoin can truly be considered “digital gold” in cryptocurrency-savvy regions. Noelle Acheson, author of “Crypto is Macro Now,” believes that the controversial elections in Venezuela and fears of conflict spreading to Lebanon could have a significant impact on the price of Bitcoin. Geopolitical instability often drives investors towards safe assets such as gold, which has seen a 1% increase since July 26.
Acheson points out that citizens in both Venezuela and Lebanon are familiar with cryptocurrencies as a payment method and store of value. Despite their small market size, any shift towards Bitcoin in these regions could draw attention to its non-speculative uses. In Venezuela, the economy has faced serious collapse under the leadership of Nicolás Maduro, leading both ordinary citizens and the government to turn to cryptocurrencies in the face of US and EU sanctions.
Amid the turmoil in Venezuela, Maduro claimed victory in the recent elections, but opposition parties disputed the results and presented data indicating a landslide victory in their favor. This has led to calls for protests from both parties. Meanwhile, the United States is urging Israel to refrain from retaliatory strikes against Beirut, according to Reuters.
Lebanon has also seen significant cryptocurrency usage due to its economy being affected by hyperinflation. Wealthy individuals in the country often use stablecoin brokers to manage their finances, with a preference for USDT on the Tron network. The increased adoption of cryptocurrencies in these regions further highlights the potential for Bitcoin to be seen as a safe haven asset in times of geopolitical uncertainty.
As tensions continue to rise in Venezuela and Lebanon, the role of Bitcoin as a store of value and payment mechanism is being put to the test. The familiarity of citizens in these regions with cryptocurrencies could lead to increased adoption of Bitcoin, highlighting its non-speculative uses beyond just investment. The evolving situation in these countries serves as a reminder of the global impact of geopolitical conflicts on the cryptocurrency market and the potential for Bitcoin to serve as a digital alternative to traditional safe-haven assets like gold.
