Ever Since Russian Forces invaded Ukraine, the whole world has expected the crypto market to suffer the same fate as many industries in the world. However, the crypto market has stood its ground and maintained a reasonable standard.
Cryptocurrency has opened an alternate financial system that has created new ways for the world to make donations as Ukraine started accepting crypto. They have received donations worth millions of dollars but in the midst of it all has been the emerging role crypto assets have played and how it has made crypto’s role clearer.
This is surprising though because with cryptocurrency platforms becoming a part of our financial system, they are exposed to the effects of international conflicts.
The Crypto Price Movement
When the announcement of the military operation in Ukraine was broadcasted, the crypto market suffered a 10% drop in value. However, it recovered quickly and was back on track. Crypto trading rose markedly on crypto trading platforms, including yuan pay group Australia. There has also been a noticeable increase in the transaction of cryptocurrency in the Russian Ruble and Ukrainian Hryvnia which has been its highest in months.
The conflict between these two European countries has enabled cryptocurrency to become a weapon and both countries are using it to their advantage, for good and for bad. In contrast, the Russian ruble is seeking refuge in crypto assets while the Ukrainians are receiving donations from cryptocurrency communities around the globe.
Several nations have issued heavy sanctions against Russia as a reaction to its invasion, including the United States, the European Union, Australia, and Japan. As a result, the Russian fiat currency is under enormous pressure, allowing cryptos to move up.
Reasons for the Movement
It is very normal for there to be a fluctuation in the value of cryptocurrency but this is not the case this time. Irrespective of the ongoing conflict, the market has not suffered any major crisis and is going strong. This has created a notion that cryptocurrency is a safe asset but that’s false because the reason for this strong placement is external to the conflict and internal as well.
External Reasons Driving the Price Movement
HODLing
With this ongoing conflict, it is expected that many people would have panicked and begun to sell their assets as has been the case even in situations, not this grave. However, many people are staying true to the word HODL and Holding On to their Dear Lives. This has kept the market stable and there has been no extravagant drop
Global Use Case
Many people have become familiar with how Bitcoin and its underlying blockchain works. Many milestones have been achieved so far, especially in the capital gains and growth of NFTS. More people are exploring the possibilities that can happen with crypto. Expect more changes in the future.
DYOR
This stands for do your own research and that has become a major thing in the crypto space. Many people are now trying to DYOR more to gather more knowledge on the whys, hows, whens, and what of investing in crypto.
With all the many information on crypto on the internet, DYOR allows users to select the real information and reduce misinformation.
Internal Reasons for driving the movement
Impact on Traditional Banks
People cannot rely on traditional banks at these times because of the chaos in society. It’s for reasons like this that cryptocurrency was developed. Crypto is serving both the Ukrainian and Russian governments and is helping them at a time when both parties need a system that has no government interference.
Crypto Donations
Through crypto donations, the Ukrainian govt has been able to raise money to sort the majority of their needs. This is a system that is new to them and it seems to be paying off because the process cannot be monitored.
Bottom Line
Several cryptocurrency enthusiasts believe that the Russian-Ukrainian conflict might change cryptocurrency’s future. Cryptocurrencies are resolving traditional financial system flaws and shortcomings, which shames naysayers who keep calling them “just a bubble.”.