Escalating geopolitical tensions threaten to balkanize blockchain networks and restrict users' access, crypto executives told Cointelegraph. On April 9, US President Donald Trump announced a pause in the rollout of tariffs imposed on certain countries — but the prospect of a global trade war still looms, especially because Trump still wants to charge a 125% levy on Chinese imports. Industry executives said they fear a litany of potential consequences if tensions worsen, including disruptions to blockchain networks’ physical infrastructure, regulatory fragmentation, and censorship. “Aggressive tariffs and retaliatory trade policies could create obstacles for node operators, validators, and other core participants in blockchain networks,” Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance, told Cointelegraph. “In moments of global uncertainty, the infrastructure supporting crypto, not just the assets themselves, can become collateral damage.” According to data from CoinMarketCap, cryptocurrency’s total market capitalization dropped approximately 4% on April 10 as traders weighed conflicting messages from the White House on tariffs amid a backdrop of macroeconomic unease. Crypto’s market cap retraced on April 10. Source: CoinMarketCap Related: Trade tensions to speed institutional crypto adoption — Execs Bitcoin’s vulnerabilities Bitcoin ( BTC ) is especially vulnerable to a trade war since the network depends on specialized hardware for Bitcoin mining, such as the ASIC chips used to solve the network’s cryptographic proofs. “Tariffs disrupt established ASIC supply chains,” David Siemer, CEO of Wave Digital Assets, told Cointelegraph. Chinese manufacturers such as Bitmain are key suppliers for miners. However, “the greater threat is the erosion of blockchain’s core value proposition—its global, permissionless infrastructure,” Siemer said. This could be especially problematic for everyday crypto holders. “If global trade breaks down and capital controls tighten, it may become harder for citizens in restrictive countries to acquire bitcoin,” said Joe Kelly, CEO of Unchained. “Governments could crack down on exchanges and on-ramps, making accumulation and usage more difficult,” Kelly added. Bitcoin’s performance versus stocks. Source: 21Shares Ironically, these types of fears also underscore the importance of cryptocurrencies and decentralized blockchain networks, the executives said. Bitcoin has already shown “signs of resilience” amid the market turbulence, highlighting the coin’s role in hedging against geopolitical risks . “While the environment is challenging, it also creates an opening for crypto to prove its long-term value and utility on the global stage,” noted Fireblocks’ executive Neil Chopra. Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research
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