There is war, a war in Ukraine. I wish it wasn’t such an event. I wish to write about something else today. I wish this article to be read by Ukrainian people from the comfort of their homes. But it seems that it is not possible now. There is war! A war that will take lives and will make many of the Ukrainian people poorer because war never comes with richness, it comes only with poorness and death. History teaches us this.

Today I want to talk with you about how this war affected the crypto market and also to make a comparison between bitcoin and gold. 

Many of you know that every time a political decision is made and doesn’t matter where on the planet, all financial markets react to that decision. These markets react harder when a political decision has a big impact on an entire country or even on the whole globe. We can look in the history books and see that every time a big event happened there was also a big response from the financial markets. Sometimes in a good way but often in a bad way. Now is one of those times. Yes, everything will be fine in the end but we don’t know when the end is. So until then, we have to secure our money because we never know what the next day will prepare for us. For me, a Romanian guy who is living less than one thousand kilometers (960 km) from Kyiv is not so nice to know that maybe at some point I will not be able to have access to my funds because they are stored in the bank and the bank is down (of course this isn’t my biggest concern right now). That’s why in such a situation it is recommended to have the money distributed in many baskets. But let’s see what exactly happened on the financial markets during these days. If we take a quick search we can see that the crypto market had a little dump of 7.42%, gold slipped by 1%, and stocks by 10%. What do these mean and how does this affect us? Well, it means that people all over the globe are afraid that this war can grow and it can become a world war. No one knew, in the first hours of the conflict, what the reactions of the US and EU would be so there was just fear, that’s why many investors started to sell their assets. Also, this instability in the financial markets brings a bigger instability on the psychological level for the people. Even if the US and EU already come and say that there is no way to start a world war because none of them want a war with Russia, the physiological pressure and instability are still there. Yes after the first day of war all the markets started to recover and this was just because people saw that Russians attacked only Ukraine. But after Ukraine what or who? This is the main question in the investor’s head. Nobody knows. Time will tell us. 

Now after we saw how the markets were impacted let’s see a small comparison between BTC and gold. I will not make a comparison between bitcoin, gold, and stocks because I think that many investors withdraw their money from stocks and pump all of them in gold (especially) and crypto (BTC especially). I am not a financial analyst but that 10% off should be put in a safe place, like gold and bitcoin (yeah, split it out, I don’t mind if you insult me, I know what I’m saying here so that’s fine). Many investors rushed to buy gold and that’s why the drop was so light, just 1%. But only a few rushed to buy crypto and from here that little 7.42% crash. Also after a red day in financial markets, we can see that almost all of them started to recover. Bitcoin rose by 10.79%, gold by 1.66% (but after a few hours it dropped again by 1.5%), and stocks (Dow Jones Indices) by 5%. This means that we are not on profit on all markets yet but we are on the right way. 

In the end, I want to say that everything that I said here is not the most important thing for us, yes we should have a strategy, what to do with our money in a situation like this but there is something more important that we should look at, our families and our lives. There is nothing more important than our families, so enjoy every moment with them, because you never know what the next day will bring to you. 

 

#SlavaUkrayini 

 

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Written by : Betuel Saracut

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