Bitcoin and world events and how the market reacts quickly to any perceived change and what you can do to protect your investment
Estimated reading time: 5 minutes
Table of contents
Russia and the Crypto market
I am not in any way condoning war or the Invasion of Ukraine. This is a David and Goliath struggle and we can only hope that David achieves the best possible result.
We must all struggle to understand how this can happen in this day and age and be allowed to go on without retaliation.
The Nuclear threat is always imminent.
The World has responded
Many are surprised at the reprisals taken against Russia by not only Governments but businesses as well.
It can be hoped that the citizens of Russia will rise against the Government as their lives are radically changed.
The Russian stock market has crashed and the Ruble went to rubbish as people scrambled to get cash before the banks closed the doors.
International Currencies are denied as Swift and the US baking system cut this nation away from world supply.
With all this descending on the country, the citizens without foreign currency are indeed impotent.
Certainly, Bitcoin would be a great hedge but only if you had it prior to the invasion, buying with Ruble would not be an easy process.
Bitcoin and world events and a free fall
The War Chest of Russia is in a free fall
Russia may have many billions of dollars stashed to fund a war however it is now virtually useless on the world stage. Yes they make many of their own weapons, and indeed sell them to many countries but they need materials and technology to continue the trend. They will be in short supply.
Why India is seen to be supporting Russia
India buys a large majority of its war tools from Russia. That includes ammunition and replacements so they are in an unenviable position. When their Neighbor Pakistan was sourcing American military supplies India was forced to be different and will now pay the price.
Likewise China is a fence sitter
It may be an intense dislike of the US or its infatuation with Putin the man but they are certainly looking like a Russian sympathizer.
We wonder if this is being viewed as a model to potentially be used against Taiwan
a long-held desire of mainland China. We could be in line for more upheaval as the world changes.
Although Korea is sizeable at 51 Million people it can be no match for 1 billion behind mainland China.
Bitcoin and world events in condemnation
The rest of the world is united in condemnation
Those that have no ties to Russia are unanimous in their condemnation of the invasion and are taking action to put them in the cold room.
Even Russian Vodka is being withdrawn from supermarket shelves to really show a united front of ill-feeling against the country.
Russian exports will be frozen and imports not be available thus seriously affecting the general population.
The early protests will increase as the restrictions severely change the general lifestyle of the population who generally disagree with War.
The Bitcoin influence
As of February end over us$52 million has been donated to the Ukrainian government using Bitcoin, Ethereum, and USDT
Many citizens have used the cryptocurrency as the ruble collapses. Trading in foreign currency comes with a government levied 30% surcharge which is expected to grow.
Bitcoin has no political agenda however some of the alt-coins may exert some influence along the way
Ukraine is seeking donations.
MOSCOW, March 3 (Reuters) – The Russian rouble slumped to new record lows against the dollar on Thursday though it closed the Moscow session little changed, after Fitch and Moody's downgraded Russia's sovereign debt to “junk” status, with steps by the central bank and finance ministry failing to halt its slide.
JP morgan
Bitcoin is A political
Bitcoin has no political agenda. It is there to provide stability without government or managerial intervention that can alter the course of history.
Of course, the price is in part manipulated by Whales ( large institutional investors) moving in and out however with more and more investors the likely hood of control is not on the cards.
It will continue to be a safe haven and provide seamless abilities across borders and have a long-term effect on international finance at large.
It's an investment world.
Cryptobasic.net
Conclusion
Financial trading in any disguise always contains some risks however mostly balanced by high rewards.
With interest rates low and many countries in financial situations with huge international borrowings, we can look forward to a bumpy road.
Not offering any advice however I believe Bitcoin represents a relatively safe haven for the near and long term future.
Bitcoin and world events by Peter hanley
