geopolitics - Pwim.Net

Short-Term Holders Dominate Primary Driver for Bitcoin's Liquidation amid Ukraine Crisis

Bitcoin (BTC) continues to be in the red following its slip below the psychological price of $40,000, a scenario not seen in the last two weeks.

The leading cryptocurrency was down by 6.38% in the last 24 hours to hit $36,732 during intraday trading, according to CoinMarketCap.

Analysis by IntoTheBlock shows that short-term holders have been the primary catalysts of the present leg down as they continue liquidating their BTC investments. The market insight provider explained:

“Short-term holders continue to be the main driver of BTC volatility. While long-term holders remain unfazed, the balance held by traders – addresses less than 1 month, are moving almost in tandem with the price action. Since Feb 14, they decreased their holdings by 8.7% to 1.55m BTC.”

Source: IntoTheBlock

Some of the factors that might have triggered short-term holders to be on a selling spree entail the Ukraine-Russia tension, given that a full-blown war between the two nations seems likely.

Things have gotten worse given that Russian President Vladimir Putin signed a decree recognizing two breakaway regions of eastern Ukraine as independent entities. Previously, Ukraine legalized Bitcoin because it plays an instrumental role in aiding donation efforts needed to boost its army.

On the other hand, low BTC network activity triggers the current drawdown because of slashed demand. Economist Jan Wustenfeld stated:

“While the supply of Bitcoin is becoming more illiquid, which is good, network activity remains relatively low and partially even decreases further. Considering the total on-chain transaction value of $BTC since mid-2021 it has been low.”

Source: Jan Wustenfeld

Therefore, BTC demand should be rejuvenated so that the leading cryptocurrency can be back to winning ways.

Iran Joins BRICS to Reduce Reliance on Western Economic Systems

Iran’s recent accession to the BRICS economic organization, a coalition led primarily by China, marks a significant development in international geopolitics, particularly in the context of the country’s ongoing economic challenges and diplomatic isolation. This move, officially commencing on January 1, 2024, represents Tehran’s attempt to navigate the impacts of U.S. sanctions and its broader strategic goal of reducing reliance on Western economic systems.

Iran’s inclusion in BRICS, alongside other new members such as Saudi Arabia, Ethiopia, Egypt, Argentina, and the UAE, adds considerable weight to the bloc, which already comprises Brazil, Russia, India, China, and South Africa. This expansion reflects the group’s aspiration to reshape the global order, perceived as outdated by its members. The enlargement process, first of its kind in 13 years, underscores the bloc’s intent to challenge the existing global hierarchy and increase its influence in the Global South.

President Ebrahim Raisi of Iran views this membership as a critical achievement, linking it to the nation’s economic and diplomatic aspirations. By aligning with BRICS, Iran aims to challenge the dominance of the U.S. dollar in global trade and mitigate the effects of U.S. sanctions. However, there’s skepticism regarding the practical benefits of this membership, especially given the geopolitical tensions involving key BRICS members like Russia and China, and their complicated relations with the West.

Iran’s engagement with BRICS is part of President Raisi’s broader strategy of strengthening ties with Asian powers and neighboring countries. This approach is seen as a counterbalance to Western isolation efforts, particularly in light of the stalemate over Iran’s nuclear program. However, the effectiveness of this strategy remains uncertain, as trade relations with BRICS nations, including China, continue to be hampered by U.S. secondary sanctions. Furthermore, Iran’s recent restoration of diplomatic ties with Saudi Arabia, another new BRICS member, indicates a shift in regional dynamics, potentially impacting its engagement within the bloc.

The expansion of BRICS has been met with varied reactions internationally. While Chinese and Russian leaders have hailed it as a historic step towards strengthening global peace and development, the United States has downplayed its significance, not viewing BRICS as a major geopolitical competitor. This mixed reception highlights the complexities and diverse perspectives within the international community regarding the bloc’s evolving role.

In summary, Iran’s BRICS membership represents a strategic move aimed at diversifying its economic partnerships and reducing dependency on Western financial systems. However, the actual impact of this membership on Iran’s economy and its global standing remains to be seen, given the internal divisions within BRICS and the ongoing geopolitical tensions.

WEF Report Warns of AI and Quantum Computing Risks

Significant concerns have been made in the study that was published by the World Economic Forum (WEF) in 2024 on the adverse effects that artificial intelligence technologies and the rising dangers of quantum computing may have. The findings in the paper highlight the negative effects that artificial intelligence has had on people, corporations, ecosystems, and economies. In addition to severe disruptions in the global employment market, these impacts include the propagation of false information and disinformation, the development of a mistrust of facts and authority, and the dissemination of misinformation.

It is important to note that the role that AI plays in the generation of material makes it harder to differentiate between fact and fabrication. This increases the potential of influencing public opinion via content that has been modified or deliberately produced. Concerns about the global labor market have been aroused as a result of the fast replacement of people by artificial intelligence across a variety of sectors, ranging from the entertainment industry to scientific research. This might possibly result in significant job losses and economic instability.

In addition to this, the paper emphasizes the potential disruptive impact that quantum computing might play. With its heavy reliance on artificial intelligence, this technology poses a danger to the current technological system and raises significant issues over security. In the realm of geopolitics, the incorporation of artificial intelligence into military applications poses ethical and human rights concerns, especially with relation to autonomous weapon systems.

In the paper from the World Economic Forum (WEF), several ramifications of artificial intelligence (AI) in healthcare are discussed. Particular attention is paid to the ethical use of data and the possible biases in medical research and development that favor more affluent people. In light of larger worries about artificial intelligence’s potential to widen economic inequities, particularly between high-income and low-income countries, it expresses worry that AI might make it possible to develop biological weapons that are more targeted and severe.

The World Economic Forum (WEF) has issued a demand for enhanced public awareness and education on artificial intelligence (AI) and on the regulation of AI. The critical need to govern this rapidly developing technology was brought to light by the recent global statement on artificial intelligence safety, which was endorsed by leaders from 29 nations and the European Union. On the other hand, opinions about the regulation of artificial intelligence differ from country to country. For example, the United Kingdom has decided not to regulate AI in the foreseeable future and will instead concentrate on innovation.