Recently we can see how brutally Russia invaded Ukraine, after the casualties the most talked about topic is the role of cryptocurrencies. Since the invasion has caused turmoil in the traditional financial market, people are now looking towards the crypto market.
This attack on the European nation has put the spotlight on cryptocurrency, by raising two big questions about cryptocurrency and its future. In our current blog post, we have reviewed all these questions.
Are cryptos becoming digital gold?
After observing the growth of cryptocurrency over the years, it has become clear that these coins are digital assets, especially bitcoin. However, after the war in Ukraine intensified this week the price of bitcoin has crossed $44,000, the current price of bitcoin is $47,591.80. Considering this it can be said that bitcoin is becoming digital gold.
Various speculations are going on in the market, various analysts are saying that the price might cross $50,000 if the war continues. On the other hand, some experts are predicting the fall in bitcoin’s price, which seems to be far off-road.
Despite all this speculation, people who have invested in bitcoin are gaining an excellent profit. If you also want to invest in bitcoin, then we have a perfect platform for you named Bitcoin Prime. Go check out bitcoin-primeapp.com to know more about this crypto investment.
Bitcoin is already tagged as a “safe heaven” in the crypto market. While this war is disrupting the traditional financial market, people are relying on the crypto market. It is increasing the investment which eventually results in a surge in the market value.
Can cryptos be used to avoid sanctions?
After the invasion of Ukraine, Russia has been hit with various economic sanctions that have further affected its economy in the most terrible way. Countries like the USA, Canada, and the European Union have imposed economic sanctions on Russia. The ultimate goal of these sanctions was to cut out Russia from the global financial system. Especially the removal of SWIFT has hampered their access to the global financial markets.
Therefore, this puts forward the idea of using cryptos, and it has led to a debated topic of whether cryptos can be used to evade those restrictions and sanctions? Well, it is because the cryptos are decentralized in nature- meaning they are not controlled or governed by any financial institutions or government. When crypto is sent to other users, it does not go through the traditional route of financial plumbing.
In the opinion of various experts, this can be a practical way to avoid all those sanctions. But on the other hand, it raises various questions and challenges, such as:
- The blockchain technology that supports cryptos is a public ledger of activity, therefore, it is possible to track down the movement and usage of funds from one account to another. Thus, it is not a good idea for avoiding sanctions.
- The Russian oligarchs do not have enough liquidity in the crypto market that they can move around. Also, there are no such companies in Russia that can help them in this process.
Therefore, it is still a very big question whether it is possible to use cryptos for avoiding sanctions or not.
Finally, we will say that despite having various facilities, cryptos somewhere felt short. Russia might not avoid the sanctions by using cryptos but the war has elevated the crypto market.