On February 24, 2022, there was an unprovoked invasion of Ukraine by Russia. This day will not only go down in history textbooks, but will also be deeply remembered by all of us. On that day, our understanding of the coexistence of States in peace and respect for borders and self-determination was shattered. Certainly, some of you are wondering what the real impact of economic sanctions on the war is and whether those affected by sanctions can somehow avoid them. Can cryptocurrencies be a viable alternative at times like this?
New economic reality and sanctions.
On February 24, 2022, there was a sudden crash in the global stock markets. Virtually all companies, both in Poland and on most stock exchanges in the world, recorded deep declines. What was happening to the price of Bitcoin and other cryptocurrencies at that time? Nothing really special, in fact. The deep declines from the first day of the war were quickly recovered, and then showed an upward trend. What could have been the reason for this turn of events? Many observers and analysts quickly identified billionaires, millionaires, oligarchs, and Russian institutions and companies. Why? Certainly, they wanted to save the value of their money as quickly as possible and make the necessary transactions. Exactly on the day of the imposition of sanctions in the form of cutting off Russian banks from the SWIFT system, a clear increase in the price of Bitcoin and several other cryptocurrencies is visible.
Have cryptocurrencies helped bypass economic sanctions?
The answer to this question cannot be unequivocal. This is due to various aspects and specificity of blockchain technology as well as cryptocurrencies and tokens. Most of these projects are largely anonymous and encrypted. This makes it possible to perform illegal or bypass transactions based on them. This has been visible in recent years in the actions of such regimes as North Korea and Libya, which tried to circumvent international sanctions by making electronic currency transfers. Payments with Bitcoin or other cryptocurrencies has been known for a long time in the so-called Dark Net or the dark side of the Internet. There are many indications that the Russians subject to sanctions and experiencing problems with the ruble value have also decided to quickly buy Bitcoin or other cryptocurrencies. Only in this way could they make outstanding transactions or save their capital, even in rubles. Have they succeeded? Rather not fully. Especially since a large number of cryptocurrency exchanges have stated that they will not serve clients of Russian origin. On the other hand, many of them did not react with appropriate restrictions and thus could affect access to assets in the form of cryptocurrencies.
Bitcoin and cryptocurrencies and war
The international tension in the face of the impending war has led to declines in both the stock market and the cryptocurrency market. In such situations, investors are highly risk averse and get rid of risky assets. It is hardly surprising because stocks and cryptocurrencies are the most vulnerable to rapid fluctuations. The panic and the sale of Bitcoin were visible mainly on the first day of Russia’s invasion of Ukraine, on February 24, 2022. However, it wasn’t long before Bitcoin reverted to its earlier valuation and began generating profits for investors. In addition to the Russians’ desire to flee to cryptocurrencies, these increases were certainly influenced by raging inflation around the world. Both in Poland and Ukraine, Turkey, Hungary and Russia. The ruble plummeted in value and international importance after the invasion began. It is hardly surprising, therefore, to the Russians’ mood and natural attempts to save the value of their savings and property.
Which cryptocurrencies could be used to bypass international sanctions?
Of course, most institutions and investors have certainly focused their attention on Bitcoin, the first digital currency. However, the most common and recognizable ones also had an impact on the market situation. These include Ethereum, Tether, which is denominated in US dollars, and Ripple XRP, which has long been used by the financial industry to make fast transfers and transfers. It is Ripple, which is a fairly centralized project compared to its competitors, gaining considerable popularity on world markets, although it has been known for a long time. The increases were also visible on other, slightly less known cryptocurrencies, such as Terra Luna
If you are looking for the latest information, news and events from the world of encrypted electronic currencies and tokens based on blockjchain technology, you will certainly find them on the website bitcoin-exchange.uk
Source: Plato Data Intelligence: PlatoData.io