- Experts agree that the next international conflict will erupt over Taiwan.
- To overcome the naval blockade, the country’s authorities were advised to buy bitcoins, which would allow them to make payments.
- The recommended investment amount is $602 billion.
Staff of the study Bitcoin organization Bitcoin Policy Institute advised The Taiwanese government is hoarding BTC. Why did they do this?
Experts compared cryptocurrency with two of the most popular reserve assets: the US dollar and gold. After analyzing their advantages and disadvantages, they concluded that in the event of a naval blockade of the island by Chinese forces or a full-scale invasion, Taiwanese authorities would always be able to manage only digital assets, because:
- The precious metal will be blocked or confiscated by enemy military;
- The availability of digital transactions with dollars depends on the US government, which cannot be relied upon.
Unlike fiat currency, Bitcoins cannot be frozen and can be sent via Block to any point in the world, while gold bars need to be transported from the island by plane or ship, which would be problematic in combat conditions.
Disadvantages and advantages of assets during war
The report’s authors recommend that Taiwanese authorities create a state-owned Bitcoin fund to strengthen the country’s geopolitical stability. They recommend investing 5% of the country’s reserves, valued at $602 billion, in Bitcoin. This means the government is being asked to allocate $30,1 billion for cryptocurrency purchases.
Bitcoin market capitalization reaches $1,33 trillion, so such an influx of capital will have a limited effect on the coin’s price.
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The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making any investment decisions.