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Bitcoin strengthened sharply, the Russians flock to the ruble for cryptocurrencies

The growth of bitcoin et al. follows Western sanctions affecting the functioning of the Russian financial system. Citizens of the Russian Federation, for example, have problems withdrawing cash from ATMs, the ruble has weakened sharply.

Data from virtual currency provider Kaiko suggests that many Russians have decided to trade their funds for cryptocurrencies. The volume of trading in bitcoin for rubles is the highest in nine months. 1.5 billion rubles were exchanged, says Coindesk.

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“The volume of trades with the bitcoin-hryvnia currency pair also increased significantly, but did not exceed the values ​​from October last year. However, the possibility to exchange Ukrainian currency directly for bitcoin exists only on a few stock exchanges, “says Clara Medali, an analyst at Kaiko. However, trading activity in rubles and hryvnia still represents only a fraction of the funds traded on cryptobourses.

However, according to proponents of bitcoin at the time of the Russian invasion of Ukraine, the cryptocurrency shows that its operation can withstand the failures and turbulences of the world financial system. In addition, with the help of cryptocurrencies, financial aid in the order of hundreds of millions of crowns flows to Ukraine.

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Despite the current increase, the bitcoin exchange rate remains well below last year’s highs. It is about a third lower. However, last week after the invasion began, it was even lower. It fell to $ 34,000 on Thursday.

“Risky assets have come under pressure due to the Russian-Ukrainian conflict. This also includes bitcoin and other cryptocurrencies, which are now perceived as high-risk assets, “said Vijay Ayyar of the Singapore cryptocurrency exchange Luno. Once again, the view has been undermined that bitcoin could serve as so-called digital gold, a safe haven for investors in times of uncertainty.

“Cryptoactive substances once again prove that the story of the alleged safe harbor is a myth,” said analyst Timo Emden of Emden Research. Similar considerations about whether the cryptocurrency behaves more like a precious metal or a technological stock have also been fueled by the price development of gold. As the war broke out, the precious metal immediately rose to two thousand dollars an ounce. In the following days, however, it weakened slightly to $ 1,900.

“In my opinion, neither comparison is correct. Bitcoin correlates with healing in the short term, however, in the long run it is a completely separate category. In the thirteen years since its inception, it has evolved from a zero-value experiment to an instrument with global liquidity and a value of about a trillion dollars. In my opinion, the most apt term for bitcoin is global non-state money, “said Josef Tětek, publicist and author of the book Bitcoin: Separation of money from the state, in an interview for the E15 daily.

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