Why Afghanistan is an Argument in Favor of Cryptocurrencies

Why Afghanistan is an Argument in Favor of Cryptocurrencies

Kabul has fallen, the withdrawal of funds from banks is not the main thing on the minds of those fleeing the country now;

History is full of examples when accumulated wealth evaporated;

Cryptocurrencies are Global;

Digital wallets can be transported easily;

Cryptocurrencies are outside politics and ideology.

The world was shocked last week by the events in Afghanistan, where the Taliban took control of the entire territory of the country. After almost 20 years of the presence of the United States and NATO in the country, accompanied by military operations with huge human losses and multi-trillion-dollar costs, the process of withdrawal of troops and transfer of control to the trained Afghan army did not go according to plan. The Taliban (the movement is banned in Russia) was rapidly advancing and soon captured the capital of Afghanistan, Kabul, as a result of which a hasty evacuation began on a scale unprecedented since the Vietnam War.

The United States and NATO launched an operation in Afghanistan after the terrorist attacks of September 11, 2001 in order to counter terrorism, which flourished in the country under the Taliban. Just a few weeks before the twentieth anniversary of the September 11 attacks, the Taliban regained control of Afghanistan.

Fearing for their lives, people in a panic are trying to leave the country, taking with them everything they can carry. History repeats itself, and as the Taliban advance, unsurprising reports of massive withdrawals from banks began to appear. When the U.S. military withdrew from Saigon in 1973, local gold prices reportedly rose to $50,000 per ounce. Those leaving the country sought to transfer their capital and savings into assets that could be taken with them.

Half a century later, in Kabul, the owners of cryptocurrencies can easily take all their bitcoins, ethers and other tokens on a flash drive or in a digital wallet with them from Afghanistan to a safe place. Political upheavals are another argument in favor of cryptocurrencies.

Kabul has fallen, the withdrawal of funds from banks is not the main thing on the minds of those fleeing the country now

The two—decade-long presence of the United States and NATO in Afghanistan ended last week with the same thing that it began with – the Taliban movement once again dominates the country. The United States has become the second superpower in the last four decades to fail in its attempts to change Afghanistan. This Central Asian mountainous country with a predominantly tribal society will now again have a theocratic government that will implement Sharia law and the steely will of the Taliban religious leaders.

According to the estimates of the US State Department, as of the end of last week, thousands of American citizens and Afghans remained in the country, assisting the Americans in the fight against the Taliban. For many, evacuation is a matter of life and death.

Afghanistan’s international accounts have been blocked and banks have been closed, and in this situation, the lucky ones who still manage to get to the airport to leave the country leave with nothing. Taking their money out of the banks is the last thing these people are thinking about now, trying to save their lives.

History is full of examples when accumulated wealth evaporated

The current situation in Kabul serves as another illustration of how, as a result of sudden political upheavals, savings accumulated over the years can evaporate when it comes to the traditional banking system. Another illustration was Saigon in 1973. In Nazi Germany of the 1930s, those who managed to leave the country left with nothing. And although the wealthiest of the refugees took away diamonds, gold and other precious assets, they could only take with them what they could take away on themselves.

History knows many examples when people were forced to leave their native lands due to wars, persecution and natural disasters. Events that force people to flee usually unfold quickly, which is why it is problematic to plan anything.

In such circumstances, the opportunity to take your wealth with you fades into the background. For many, such an opportunity simply does not exist, since banks do not work, and many types of investments simply cannot be transported with them.

Cryptocurrencies are Global

In the past, the main arguments in favor of holding assets such as precious metals and diamonds were that these are small-sized items that are easy to transport. However, thanks to the technological revolution, it has become even easier to store and move capital.

Cryptocurrencies know no boundaries. They are interchangeable and exist in the cloud or cyberspace.

It is impossible to hold bitcoin or ether in your hands (some investors don’t like it). For those who suddenly find themselves in refugee status and own cryptocurrencies, this is an advantage.

Apart from refugees, cryptocurrencies also allow residents of those countries whose currencies are not directly exchanged for dollars, euros, pounds, yen and other freely traded reserve currencies to transfer their capital abroad at any time.

Digital wallets can be transported easily

Any number of cryptocurrencies can fit on a flash drive. With a strong password, the owner of cryptocurrencies can access their funds from any computer from anywhere in the world.

Thus, digital wallets in cyberspace are an effective tool for saving fortunes. It is possible that at least some of those who are now fleeing from the Taliban to start a new life in another country have access to savings in the form of cryptocurrencies. There will be a lot of talk about the advantages of this asset class after the restoration of the Taliban regime in Afghanistan.

Moreover, there is a possibility that the Taliban themselves own cryptocurrencies, which allows them to function despite the fact that the United States and other governments have frozen Afghan reserves by more than $ 9 billion.

 

Cryptocurrencies are beyond politics and Ideology

Cryptocurrencies are a libertarian form of money that allows you to take control of the money supply from governments and central banks and return it to people’s hands. Cryptocurrencies are outside politics in our world, which is ruled by politics and ideology.

On the NASDAQ website, an article from January 2018 provides 10 reasons why cryptocurrencies make our world a better place, namely:

reducing the risks of fraud;

crowdfunding development;

changing the funds transfer process;

strengthening e-commerce;

promoting scientific innovation;

accountability for companies and individuals;

safer transactions and international money transfers;

a stable alternative for unstable currencies;

returning control over money to people;

scalability.

Following the takeover of power in Afghanistan by the Taliban, we can also add another reason to this list: capital flight. A wallet with cryptocurrencies will help refugees start a new life in a new country.

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