Russian’s Turning To Cryptos As A Way To Hold Their Money

Crypto firms that are acting all over the world have determined that crypto market is not used to carry out sanction processes. Russians have found that virtual currency can become their haven in times of war.

Billions of dollars a night do not reach fruition unless sanctions are evaded. Clients have already started to invest their money in UAE, either for real estate or to change it into hard currency and save it someplace safe.

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Why is cryptocurrency preferred at the moment?

  • Cryptocurrency-based investments have increased quite a lot over the warlike situation between Russia and Ukraine. They are moving into digital assets because it makes sure that the money is way more accessible to the clients.
  • The trading volumes of the coin, which are used mainly by Russia and Ukraine, are nearly close to a 270% rise. This is because people from both nations have expressed their concern over the safety of the national currency.
  • They need to know that they have a haven in times of war, and Crypto has provided them with this assurance.
  • An apparent uptick in the trading volumes of the rouble pairs has been included from 20th February.
  • A massive spike was observed soon as Putin had declared the surgical operation in Ukraine. This is a clear indication of the pressure arising in the nations at war.
  • A similar pattern of investment has been seen in the case of Ukraine. The banking system has entirely collapsed. Owing to some of the attacks launched by Russia, many had to flee from their native places.
  • This was done to avoid the violence caused by war. Many lost their assets in the war. Those who had already converted their holdings into crypto found that their investments were safer than usual. Some of the wealth can be carried physically, but it is not possible to get everything out of the nation all at once.

The increasing price of Bitcoin

  • Since Bitcoin had fallen in its value over the past few years, the 34,000 USD reached a new spike on 24th February.
  • This shows that the coin has increased by almost 8.5% over the last few days. The trading venues have been placed at 25% over the previous few days.
  • The market cap of a single Bitcoin came up to be 42,441 USD in the market. Ether has also reached relatively high values over the last five days because of the same market scenario.

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Russian Scenario at the moment

  • As far as information has been amassed till now, the central bank of Russia has imposed some control systems which have doubled interest in their values.
  • 20% interest has been charged on several loans and money involvement. The US and EU allies have tightened their base in Ukraine, and this has caused pressure on the Russian army.
  • Ukraine has been receiving some reasonable amounts of donations in the form of a cryptocurrency over the last few years.
  • There are exchanges like Coinbase and Binance, which have already placed restrictions on Russian users so that Ukraine doesn’t have to suffer so much.
  • Every investor worldwide is right now thinking of crypto as one of the most critical assets.

Psychological tension through war

  • Analysts have stated that geopolitical tension can lead to psychological stress. This will have an impact on their financial decisions.
  • The money can be transferred from one single account to any account according to the user’s desire.
  • Any barrier or third party will not restrict this.
  • These measures are right now used by every single Russian or Ukrainian citizen to evade the situation that they are in.
  • Fiat currencies have some fundamental differences from cryptocurrency.
  • The crypto tokens can be transferred from one user to another while escaping different types of sanctions led by the government and banking institutions.
  • They are still not quite sure about the measures which might help them to Western sanctions acting on Russia.

Conclusion

It has been quite clear by now that the Russian and Ukrainian citizens are trying to find a single source that can protect their coins from any kind of security issue. Bitcoin and Ether, which are known for their security measures, are the users mostly preferred. Unless the war is dissipated, this will continue.

Russian's Turning To Cryptos As A Way To Hold Their Money
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