Bitcoin still steady amidst Ukraine crisis
You might be well aware of the ongoing crisis and emergency in Ukraine. The country is currently facing a war situation involving Russia on the other side. While we keep the situation aside, the current war situation has raised multiple questions on Bitcoin Work.
Three important questions need to be delved upon in the current situation.
Can you avoid sanctions using cryptocurrencies?
In the current situation, Russia has been facing several economic sanctions. These sanctions aim at removing Russia and its subsidiaries from the global financial market. The US, Canada, and other European countries have removed Russian-based banks from inter messaging systems. Popularly known as the SWIFT model, this call-off shall disturb the overall financial position of Russia in the global market.
This is when the concept of decentralized finance and blockchain technology take primary space. With the ability to remain uninterrupted by the central banking system it is possible to send money from one account to another at ease. However, one challenge that you might face here is the liquidity of crypto assets. It may not be easily possible for you to remove and replace your Bitcoin with another liquid asset.
Is Bitcoin taking the name of digital gold?
With the war situation intensifying in Ukraine, the global currency market saw a huge increase in Bitcoin prices. While the price was at $39K, the price of the same went up till $44K in a few days. This sudden increase in prices has raised the question to understand if Bitcoin has become digital gold. Even during the current war situation, the prices seem unaffected and have become a safe place to land your investment. The war situation saw a huge impact on the stock and other assets market globally. But, the only market that remained unaffected by the current situation is cryptocurrency. In the past as well, the cryptocurrency market faced a similar situation. While the pandemic and global lockdown brought down the economic market, Bitcoin and other cryptocurrencies remained and continued to provide profits to investors.
Did blockchain show its true potential?
This is another ice-breaking question in the current situation. Every cryptocurrency uses a decentralized finance model and blockchain technology to complete a transaction. Blockchain in simple terms means breaking down each transaction. Every user transaction is broken down into single chains of the ledger and stored into user computers across the globe. The user computers are also known as validators and the activity of this validation is data mining.
Going by estimates, it is understood that Ukraine was able to raise at least half a million through cryptocurrency. This funding went directly into taking effective measures to curb the war situation. This also seemed much more beneficial than the traditional banking system wherein it might take more than 4 days to receive the funding.
Impact on Bitcoin in the current situation
When the war started, Bitcoin was priced somewhere around an average %35-38K. But, roughly one week into the war the price of the same currency is now hovering at $42K. There is an increase and return on investment at 2% which seems to be an unexpected input during the current time.
Technical experts and Bitcoin specialists across the globe are analyzing the current situation. As per reports, the prices of Bitcoin are expected to increase to $55K in the coming weeks.
How Bitcoin is used for collecting donations?
While the war situation continues, many other countries are coming forward to help Ukraine as well.
In addition to this, there were individual resources who came forward in converting their altcoins to Bitcoin. This included converting Ethereum to Bitcoin and donating to charitable institutes that accept Bitcoin payments. The country has been able to generate more than 25 million in terms of Bitcoin donations. These donations were fast to reach the country given the decentralized finance model and lack of dependency on banking institutions for fund transfer. It is exciting to see that a group was able to raise more than $1 million in less than 50 seconds.
Bitcoin has always surpassed the challenges that have come it’s way. The current situation is another testimony to investing your fund in this cryptocurrency.