Sometimes the most effective policy tool isn't using force—it's making sure everyone knows you *could*. That's the core logic behind deterrence strategies, and it applies in international relations just as much as it does in crypto markets.
The mere existence of a credible deterrent can shift behavior without ever being deployed. Just the possibility alone creates psychological pressure. It's like having a security system—often the sign matters more than the actual alarm.
This principle shows up everywhere: from trade negotiations to regulatory frameworks. When market participants know certain responses are possible, they adjust their actions preemptively. The deterrent effect kicks in before anything actually happens.
For traders and investors monitoring geopolitical shifts, this matters. Policy tools sitting in the background—even unused—create friction in markets. Understanding *why* governments maintain certain capabilities tells you a lot about where tensions actually lie and what scenarios markets should be pricing in.
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BagHolderTillRetire
· 13h ago
Are you kidding me? So you're saying that those useless tricks the government has up their sleeve are actually more effective than actually taking action? That makes the crypto world quite interesting...
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GasFeeCrier
· 13h ago
Well, this logic is just ridiculous. To be honest, it's just scare tactics... That's how the crypto world works. When big players make a move, the market starts to get chaotic.
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Hash_Bandit
· 13h ago
yo this is basically the hashrate arms race playbook applied to geopolitics lol. the network doesn't need to actually slash you—just knowing the difficulty could spike keeps everyone honest. seen this play out a thousand times in mining pools, honestly... the threat of a 51% attack does way more work than an actual attack ever would
Sometimes the most effective policy tool isn't using force—it's making sure everyone knows you *could*. That's the core logic behind deterrence strategies, and it applies in international relations just as much as it does in crypto markets.
The mere existence of a credible deterrent can shift behavior without ever being deployed. Just the possibility alone creates psychological pressure. It's like having a security system—often the sign matters more than the actual alarm.
This principle shows up everywhere: from trade negotiations to regulatory frameworks. When market participants know certain responses are possible, they adjust their actions preemptively. The deterrent effect kicks in before anything actually happens.
For traders and investors monitoring geopolitical shifts, this matters. Policy tools sitting in the background—even unused—create friction in markets. Understanding *why* governments maintain certain capabilities tells you a lot about where tensions actually lie and what scenarios markets should be pricing in.