The common refrain is that Bitcoin “doesn’t care” about politics.
There’s one guy, who’s rather popular, who says it a lot.
“Bitcoin Doesn’t Care About Your Politics”
REMINDER: Bitcoin doesn’t care about your politics
— Pomp ? (@APompliano) November 8, 2018
Bitcoin doesn’t care about your politics, religion, or technical analysis.
— Pomp ? (@APompliano) April 23, 2019
UPDATE: Bitcoin continues to produce block after block after block of transactions.
It doesn’t care about your feelings, your opinions, your politics, your religion, or your outrage.
— Pomp ? (@APompliano) August 18, 2019
However, Bitcoin responds to some events, like the potential war that’s brewing with Iran.
As we previously reported, Bitcoin has performed well while things have gotten unstable outside. Bitcoin is being treated the same as other “hedge” assets like gold, and that means that when things get unpredictable, investors move their money into these assets.
For all its flaws, Bitcoin is remarkably liquid, and easy to get started. These factors play an important role in whether or not investors actually decide to get on board.
Just because you can invest in something like Bitcoin doesn’t mean you’ll have a use for it.
You have to see the light with it when things get iffy on the markets as a result of events like the Iranian crisis.
If recent times are any indicator, people will continue to treat Bitcoin like a risky hedge asset, to be used against traditional portfolios where the upside isn’t amazing and the downside is pretty sizable. That describes many traditional portfolios, until they get crypto; then things can get wild.
A study recently found that regulation increases the cost of using cryptocurrency, which will subsequently decrease the interest in using it. It might be better if the government left well enough alone, would seem to be the lesson there.
Another academic believes that the more stringent Bitcoin is regulated, the more valuable it will become. The more that governments hate it, and even ban it, the more it will be worth. That’s the conclusion of one academic economist.
The theory hasn’t been fully put to the test, as Bitcoin has always been legal in the important ways, pretty much everywhere we need it to be. That has meant that, often enough, people ignore the places where it is being banned, and where users are being hunted down.