War also affects cryptocurrencies!

Russia's attack has caused stock markets to plummet worldwide, while the US dollar, gold and oil have appreciated as investors look for safe-haven assets.

Even though cryptocurrency proponents argue that bitcoin functions as a safe haven in times of geopolitical tension, these cryptocurrencies often evolve in tandem with other risky assets.

What happened to cryptocurrencies after the outbreak of the war in Ukraine.

The beginning of the year was not very good for cryptocurrencies, with prices falling most of the time. The big fears were rising interest rates and the war in Ukraine, and in this context, Bitcoin fell by about 20%.

source

Although Bitcoin and Ethereum continue to be two very popular choices for investors, the two projects have tended to no longer offer equally high levels of return as more and more large institutional investors enter these two markets, widening the range. investment holding time and making the two assets considered more “mainstream”. In this sense, new projects, but which are solid, can offer additional performance and can be more affordable given the lower prices.

Cryptocurrency firms in the United Arab Emirates (UAE) have been hit by claims for the liquidation of billions of dollars in virtual currency holdings by the Russians.

Dubai, the growing financial and business center of the Gulf and a growing crypto center, has long been a magnet for the world's ultra-rich, and the United Arab Emirates' refusal to support any part between Western allies and Moscow has signaled to the Russians that their money is safe there.

Cryptocurrencies have the power to influence the war between Russia and Ukraine.

Ukraine's digital development minister has called for major cryptocurrency exchanges to freeze the accounts of all Russian and Belarusian citizens.

"Among the positive effects we see is that money is already being sent through Ethereum, Bitcoin and other cryptocurrencies to help refugees and other humanitarian causes. The problem is that it is equally possible that governments around the world, including in this case the Russian government, will try to get rid of certain sanctions by using cryptocurrencies as a method of bypassing international sanctions, "said Adrian Stratulat, project manager Ludo.

source

Russia's central bank has proposed a total ban on cryptocurrency mining, saying it poses a threat to both the environment and the country's financial system, as Russia is one of the most active countries in the country. Russia has become the world's third-largest cryptocurrency miner after the United States and Kazakhstan.

It is becoming increasingly clear that the financial future is digital, but the world's central banks are far from keeping pace with the evolution of digital money, which is why more than half of them are currently making efforts and working on launching their own currencies. digital.

lead image