The Ukrainian crisis did not end the market and brought considerable volatility. Cryptocurrencies were inevitable, but these digital currencies have claimed their usefulness in this turbulent era.
Ukraine and Russia set out on crypto: The Russia-Ukraine crisis has “demonstrated the power of crypto assets” as a source of “economic independence,” said Ark Invest analysts. Frank Downing Said.The country has raised more than $ 54 million in response to a petition for donations of Ukrainian cryptocurrencies Bitcoin (Cryptography: BTC), Ethereum (CRYPTO: ETH) and other cryptocurrencies, analysts pointed out.
Meanwhile, Russians used Bitcoin as a hedge against the depreciation of the ruble, Downing said. He added that this was reflected in the 243% surge in BTC-RUB trading volume in February. To see things, analysts pointed out that Bitcoin’s market capitalization now exceeds Russia’s money supply.
Russia cannot be covered under crypto: According to Downing, cryptocurrency liquidity is still part of the global currency market, so Russia cannot use digital currencies to avoid potential sanctions.
“The average Russian income earner may be trying to maintain purchasing power and wealth, but the oligarchs will need far more than the $ 1 trillion crypto market capitalization to do the same.” Said the analyst.
In addition, blockchain transparency helps reveal “whale” transactions, analysts said.
Related links: Who spends Ukrainian Bitcoin donations — and what are they used for?
Reasons why decentralization wins: Analysts at Ark Invest said blockchain infrastructure provider Infura and NFT marketplace OpenSea should ban IP addresses originating from Russia-controlled Ukraine regions and exclude individual accounts in the process. I pointed out that there is.
Therefore, he added, the average user couldn’t do anything with cryptocurrencies.
Cryptographic networks favor central service providers for ease of use and a single point of failure, analysts say. According to Downing, centralized service providers cannot deal with anomalous turmoil.
Companies such as Block, Inc. Analysts pointed out that the focus on developing privacy and decentralization for Bitcoin storage and exchange (NYSE: SQ) is likely to gain market share.
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