The war between Russia and Ukraine will change the future of crypto- a daunting question?
The sanctions which are now conducted all over the world are the epitome of what decentralized finance can do in the light of war throughout the world. The Russian invasion of Ukraine has set off many questions around the world that the financial market is not floating on the turbulent waves. Big questions have been released all over the world and it is now up to assumption about what the future might look like. The money sanctions and transactions can turn out to be quite easy with virtual gold but other implications must be thought about as well.
Can Transactions be completely avoided?
- Russia has faced a certain grave financial situation after conducting the attack on Ukraine.
- It is believed that the invasion of Ukraine has cut off the nation from the global financial system and this can never be good, even for a large nation like Russia.
- The Russian figures who might be considered to be important in terms of crypto have already been placed on the US sanction list.
- The American firms have been restricted from conducting business with these Russian agencies.
- This has hampered the connection that Russia had with the global financial market.
- The Russian ruble has taken a plunge because of these decisions.
- It has now been brought to question whether the crypto tokens and currencies can be used to escape from the restrictions which have been placed on this platform.
- The crypto world is entirely decentralized in nature and it can be used to purchase real-life belongings in the present hours.
- If these can be used by the Russian forces, it can be made sure that they are not away from the financial system of the world.
Is Bitcoin, digital gold?
- This is one of the most important questions which have been asked during the war.
- The question is whether Bitcoin can be stored like gold.
- It has to be seen whether it can be considered as a safe investment in times of turmoil just like gold.
- Risk assets are very closely related to Bitcoin and it may not be possible to handle the stocks as easily with crypto as it is with gold.
- A haven can be considered an asset that can be of use in the market in times of turmoil.
- Is Bitcoin able to reach that state yet? Well, some of the analysts have agreed with this chain of thoughts whereas the others have defied it.
- Bitcoin might have some similarities with stocks and equities as of now but the market is so volatile that the equation may change anytime positive indications show that Bitcoin might indeed be a haven but at the same time, it does have some integral differences with gold.
- As the experts have already stated, it might take longer to plan out how the changes are appearing in the market!
Proof of Blockchain Utility
- The underlying blockchain which is functioning as the core is the basis of all kinds of transactions.
- Countries like Russia and China are still using the system to gain benefits for themselves, even in times of war.
- On the other hand, with the help of blockchain technology, Ukraine has been able to accept grants from different parts of the world.
- Thus, the system has both negative and positive points.
- It is entirely up to the investors and the regulating bodies like the government which would decide the flow of decisions in the case of blockchain.
- Critical infrastructure might be required to lead this in the right manner but the values can be deployed just after it has been received within the system.
It is no longer a question of whether the crypto world can help either of the nations during the war or not. The main question that the world is looking at is asking whether the world of crypto will change as a result of this war in the background. The Russia and Ukraine war has concerned the financial market to a great extent. It is to be seen what are the long term effects and how each nation tries to overcome it with their patience and determination! Some of the original values and coins may stick in the market, but it is believed that most of these will change with time!