With cryptocurrency markets plummeting as the Russia-Ukraine conflict worsens, traders have highlighted China and Taiwan as a new potential source of conflict.
Reports that Chinese planes have invaded Taiwanese airspace sparked speculation that Taiwan could become the “next Ukraine.”
In light of the Ukraine issue, Taiwanese President Tsai Ing-wen has also asked for increased security on the island.
As illustrated by its reaction to the Ukraine crisis, crypto, like most financial markets, is subject to geopolitical tensions. This month, war-related volatility wiped out as much as $400 billion from the market.
Taiwan is also the world’s largest supplier of semiconductors. Any delays in the country’s supply chain would have far-reaching implications for the crypto mining business.
For example, since 2020, a chip shortage has driven up the cost of graphics cards. That’s, a critical component in crypto mining.
A lukewarm response from the West to Russia’s invasion of Ukraine, according to many Twitter users. So, it might empower China to carry out a similar move against Taiwan.
While the West has placed sanctions on Russia, it has avoided barring the country from participating in the global banking system. The majority of Russia’s oil exports to Europe are likewise unaffected.
Boris Johnson, the British Prime Minister, cautioned last week that a lack of Western backing for Ukraine may establish a dangerous precedent. Then, and put Taiwan in jeopardy.
China, which claims Taiwan as its own territory, has stated that the island has always been an intrinsic part of China and is “not Ukraine.”
Taiwan has vehemently denied the claim.
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