I read an article yesterday where macro strategist Mark Connors says the war-driven spending, rising debt and lower interest rates in the USA could support another bitcoin surge.
He was talking about a more prolonged conflict – if it was to drag on for months rather than be concluded soon.
Obviously we all want the conflict to finish, but there is a lot of talk about this dragging out for months now and so we should be prepared for that and try to understand the impacts.
Wars Are Expensive!
Wars are expensive, and financing them typically requires governments to issue more debt.
If the conflict extends for several months then you can expect spending to accelerate as the United States finances the military operations, and if the war runs longer then that means more spending and increased debt to fund that spending. In the United States the debt load has already been growing rapidly rising at roughly a 14% annualised pace since mid-2025. Now that is before this conflict started.
When counties like the US increases the supply of dollars in the financial system, it is effectively lowering the value of the dollars that exist in circulation, and people then look for safer places to park their money. That tends to benefit non-dollar assets like precious metals and the better crypto like bitcoin.
Bitcoin to United States Dollar
Since the first strike on Iran on 28th February, it’s worth noting that Bitcoin has gained 3.60%.
How Does Bitcoin Work?
Cryptocurrencies like Bitcoin are based on blockchain technology making them very secure, although it’s still up to investors to choose trustworthy exchanges. They refer to this as a peer-to-peer digital asset system that makes it fast, easy, and inexpensive to send and receive payments worldwide. There’s no currency exchange needed, and the transaction costs are low.
Most importantly cryptocurrency has no government, bank, or financial institution controls.
The price of cryptocurrencies like Bitcoin are determined by supply and demand, and like mining precious metals the supply is designed and managed carefully to stabilise the prices. They even call the creation of cryptocurrency mining. This mining performs the validation and creates new cryptocurrency through the use of specialised hardware and software that adds transactions to the blockchain. BeepX is one of the most cost effective and popular cryptocurrency mining platforms and many Kiwis have signed up to BeepX to have this as a home based business.
Most people that want to get involved in crypto do so by investing and trading on crypto platforms like swyftx but many also may be invested in crypto through their “normal” investments without knowing it.
Are You Investing in Crypto?
Some people have said that crypto is speculation rather than an investment, and yet we are now starting to see many of the larger investment companies (and KiwiSaver providers) adding crypto to the portfolios.
This is because like precious metals (Gold, Silver etc) the better crypto is seen as a safe option when financial markets hit the wobbles.
These days you can also invest in crypto yourself using investment platforms like Sharesies and crypto platforms like swyftx where you can invest either large sums or set up regular contributions. If you get started today then you may well benefit from a possible Bitcoin surge.
If you prefer a lower risk business that mines crypto then you might prefer to set up with BeepX.
Here at Kiwi Edition we do not provide financial advice, but like to keep you updated with news and views on all things finance related in New Zealand and that includes reporting on what is happening with crypto.
That’s why we have reported about this possible Bitcoin surge that might happen soon.
