The classical financial market in recent days has depreciated significantly the Russian national currency as the currency of national circulation in Ukraine, and paradoxically the same negative behavior has had the dollar.
However, this scenario experienced by the classic financial market is very different from the one experienced by the Bitcoin, if we take into account that it has strengthened against these markets despite being in a sideways accumulation zone.
Having contextualized both scenarios, let us return to the war, but first I must say that war conflicts have many fronts, as well as victims but also heavy economic losses, and in the case of Russia and Ukraine the human and material damage is already being felt.
In geopolitical terms, Russia would theoretically have a lot to lose, if we consider that countries that disagree with the war can use sanctions as a diplomatic tool because the dollar is the world currency and is used in payments around the world.
The above favors the cryptocurrency market, as digital currencies have the potential to lessen the impact of sanctions, furthermore this counts as the first global impact war to take place in the cryptocurrency arena, additionally Russia is responsible for a respectable percentage of the world's cryptocurrency mining.
Therefore, it is to be intuited that in the face of the scenarios financial sanctions to Russia the crypto market could be favored considerably, since one of the ways in which Russia could avoid international economic blows, is if it finds ways to trade cryptocurrencies without touching the dollar or any other classic currency.
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The cover image was designed by the author: @lupafilotaxia, incorporating image: Bullfrag
Hello @lupafilotaxia, I have been thinking just the opposite and every day my concern grew more believing that crypto assets would drop in price significantly, but the approach that your post shows logically leads to think that the availability of cryptocurrencies by Russia to "not care" the nations makes a lot of sense
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Hi @tocho2
The trading volume in the crypto market have been increasing significantly since the first day the sanctions against Russia started to sound, this data reveals that the sanctions may end up anchoring once and for all the cryptocurrency market.
Best regards, be well
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Hi @lupafilotaxia
The traditional market really looks very bad for this year. We came from a very tough few months in the global economy, and the cryptocurrency market got stronger. I think with the current war the same thing will happen, traditional is going down but cryptocurrencies will end up getting even stronger. That is what I believe.
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Hello @josevas217
I agree with you, the classic financial market is projecting a chaotic scenario this year, and the crypto market will end up being favored, or at least I hope so.
Best regards, be well
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Hello friend @lupafilotaxia.
From my perspective, when we started the year the outlook for cryptocurrencies looked very bad, as it was believed that BTC was going to go back to its origins, recently it could be observed that the market is consolidating a zone in its price, so the war may have increased the capitalization of the crypto market, and weaken the traditional economy.
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Greetings dear friend @lupafilotaxia, very good analysis and I agree with you that Russia could slightly solve the economic problems that lie ahead, if it manages to realize the commercialization of its raw material with cryptos. See you later, have a great week.
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Hello @amestyj
If you analyze, the trading volume in the crypto market have been increasing significantly since the first day the sanctions against Russia started to sound, it may not be so difficult for them to trade their commodities with the eastern countries.
Best regards, be well
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@tipu curate 3
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Upvoted 👌 (Mana: 0/3) Get profit votes with @tipU :)
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Hi @lupafilotaxia
I would expect that Bitcoin rally will take place once this conflict will be over and sanctions will be removed.
Put yourself in shoes of any Russian millionaire or billionaire (often living abroad and having little do to with Russia), who just learned painful lesson that his/hers assets may be frozen because of his nationality.
And at the same time you would learn that only having cash or bitcoin can give you some financial safety.
What would you do, if finally you could access again your frozen funds? Your currencies and your assets?
I expect that Bitcoin will be in huge demand.
ps.
I was wondering if you have any view on future of Russia financial system (especially from the perpective or regular people) after interest rates has been hiked to 20%?
I can hardly imagine being able to pay any loans or morgage in similar situation. Especially while knowing, that all imported items will cost so much more since value of Rubel dropped so badly.
Any thoughts you like to share?
Cheers, Piotr
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Hi @crypto.piotr
I fully understand your views, regarding the interest rate percentages, it may indeed destroy the financial capacity of entrepreneurs in Russia, one option is for the state to relax and give conditions to entrepreneurs to circumvent these hypothetical scenarios, We have already experienced this here in Venezuela in exponential terms much higher than the 20% you mention with a hyperinflation rate that no country has ever experienced, and somehow the strategies of the state have managed to masterfully evade these sanctions, I think Russia can do better if we consider the productive potential they have in all sectors of its economy.
Best regards, be well
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