With everything currently going on in the world, there will be many that will be speculating about the price of Bitcoin and how it will be impacted.
Of course, wherever you look the cost of living has exponentially increased across a number of nations around the planet because of a number of reasons.
Naturally, many have started to explore the option of using the best bitcoin casinos USA has to offer as a means of trying to escape the financial pressure that reality is continuing to make the world’s population face.
Indeed, it is a crisis that has impacted a vast number of industries, and the ongoing war between Russia and Ukraine certainly has not helped things, as the geopolitical crisis being experienced seemingly reversed the era of globalization; otherwise known as deglobalization.
This is where concerns about the price of Bitcoin start to come in, as the global economy has suffered greatly due to the conflict between the two countries. As the economy continues to suffer, there are concerns that cryptocurrency could also be damaged in regard to its value, too.
What are analysts believing could happen?
Of course, one of the beauties of cryptocurrency is that it is not linked to any other commodity in regard to its value. It is unlike traditional currency which is typically tied to gold, therefore there is an argument that it could continue to thrive.
Some analysts have predicted that Bitcoin could actually benefit as its appeal could be strengthened as the population seeks alternative options to conventional currency, especially as consumer prices continue to escalate and make the cost of living a lot more expensive. Some have also pointed out that the Federal Reserve could always print more money if they needed to, although we know that is a route that will be very unlikely.
However, there is the possibility that the act of deglobalization could have a negative impact on Bitcoin’s worth.
Analysts have suggested that the Fed may look to try and combat the rate of inflation by looking to tighten monetary policy. This would be a move that could stump economic growth in the immediate present, which would then create pressure on stock prices; something that has had a correlation to cryptocurrency in recent times.
There is history and precedent for the U.S. to take this move, too, as they did it in the early 1980s when the inflation rate was at the same elevated level as it is today. Back then, the head of the Fed – Paul Volcker – decided to raise the interest rate to around 20%.
Indeed, it is extremely hard to try and predict what will happen to Bitcoin and its price in the near future, as it is important to remember that virtual currency is not directly linked to anything. Speculation and confidence continue to influence the price, therefore whether the current process of deglobalization that we are experiencing will have a detrimental impact remains to be seen.