Both human life and the economy of Russia and Ukraine that are involved in conflict pay the cost of war. People lose not only their loved ones including friends, family members and other relatives but also their homes in bombings and missile attacks. The overall government infrastructures of Ukraine like hospitals, schools, bridges, oil depots, airports, roads etc. face heavy damages in the war and the debt levels of Russia increases to finance the conflict.
All these things create an atmosphere of extreme uncertainty regarding the future of Russia and Ukraine. War is going to make it much difficult for financial advisors and investors to stick to their strategies. As a result, a huge number of populations run to the back to withdraw their deposits and then the Russian central bank increases the interest rates by 20% to stabilize the free-fall of the value of the Russian currency “Rouble”.
When Russian forces started their military operation on Ukraine, the markets of the whole world crashed but the crypto market stood stronger than ever. So, in this article I will discuss some key points that will answer the question “How did the Russia Ukraine war make Cryptocurrency a good investment?” And, to start your journey in cryptocurrency trading, I recommend Yuan Pay Group App
- One interesting fact in these uncertain times is that the money tends to flow towards safe havens like gold while the Crypto currencies like Bitcoin is performing better because it is far easier to remember the private keys to your crypto than carrying gold.
- Cryptocurrency provides financial stability to Ukrainian refugees because the Ukrainian president accepted that the world wide crypto community has donated more than $100 million in 1, 55,000 crypto donations to their country in the form of monetary aid. The government has also launched a website to centralize its crypto based fundraising effort.
- Both the Russian oligarchs and the Russian government use Cryptocurrency as a tool to circumvent the monetary sanctions imposed on them. The Bitcoin-Rouble transaction volumes hit a record high15.3 billion Roubles ($140.7 million) because people have started to sell their Roubles and buying more and more Bitcoins due to which more than 1,000 Bitcoin have spiked upwards.
- Cryptocurrency not only provides new ways to make donations to the Ukrainian government but also leads the world to an alternative financial system with the help of crypto exchange platforms like CoinSwitch.
- On the first day of the Russia Ukraine war, Gold went up by 2.6%, the USA 10 year Treasury Bills yield fell 8.7% and the crypto market fell by 10% but it recovered as always and hit a new record of $3 trillion. Bitcoin was down by 8% but now it has risen by over $3 trillion.
- This war set a real example that why we should not rely 100% on traditional banks in difficult times because the governments also faces themselves in chaos in these times for example at the peak of the conflict Ukraine passed a law to create a legal framework for Cryptocurrency, allowing crypto exchanges to functional in country and banks to open accounts for crypto firms. Cryptocurrency provides a financial system where no government is involved.
- Cryptocurrency is now in the mainstream of the global financial system because it cannot be frozen, censored and used without ID.
- Cryptocurrency can be converted into flat currency if the countries face difficulty in purchasing what they want using crypto. Economy of these two countries has collapsed so their peoples are investing into Cryptocurrency as a safe way to store their wealth.
- Russia is the world’s third largest Bitcoin miner and crypto is becoming more famous in Russia day by day. This will increase the demand of Cryptocurrency in the whole world and also create a great opportunity for crypto investors. Cryptocurrency’s unprecedented role in the war is accelerating adoption of the digital assets.
- Although Crypto has shown itself to be super volatile and it often moves with stocks, famous Cryptocurrency like Bitcoin are more stable and these currencies will not fluctuate very much even when the stock market crashes.
Dark Side of Cryptocurrency
Cryptocurrency is also used by bad actors in payments to support illegal activities like cybercrimes; cross border smuggling of weapons and drugs, money laundering, human trafficking and ransomware for example Cryptocurrency is used by Russia to support pro-Russian separatist groups in Ukraine.
Cryptocurrency acts as a double edged sword in the Russia Ukraine conflict and both countries are using it as a war weapon for better or for worse. Ukrainians are using Cryptocurrency for humanitarian aid while Russians are using it as a weapon to dull the impact of economic western sanctions and trade embargoes.
Fluctuation is very common in Cryptocurrencies but this time the crypto market is stronger than ever despite the ongoing global crisis. Cryptocurrencies have suddenly become a primary source of money for the Ukrainian and Russian government. The world’s most popular Cryptocurrencies, both Bitcoin and Ethereum hit an all-time high. That is why; the Russia Ukraine war has become a game changer and converted Cryptocurrency from a risky investment to a safe haven.
The war has contributed to build the narrative that Cryptocurrencies are “Digital Gold” , speculative asset, seizure-resistant, policy independent and longer term store of value because Cryptocurrencies are beyond the reach of governments and safer than traditional currencies