Recent research indicates that cryptocurrency usage is rising amid fears of government defaults and economic instability. A study shows that a 10% increase in sovereign credit default swap (CDS) spreads correlates with a 2.9-4% increase in crypto app downloads, suggesting that individuals turn to crypto during times of financial uncertainty. Data supports the narrative that Bitcoin serves as a refuge from inadequate economic policies, particularly in countries with low trust in government. The findings reveal a flight-to-Bitcoin phenomenon, where demand grows with economic policy uncertainties. Additionally, evidence points to an increase in crypto ownership as people seek alternatives under government sanctions. While these trends are more pronounced in emerging markets, there are signs of recognition of crypto's value in developed nations, particularly in contexts of sovereign debt risks. Overall, the studies reinforce long-held beliefs about crypto's utility, confirming its role as a hedge against government-related economic troubles.

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