Russia / Ukraine war : What does it mean for crypto ?



Russia / Ukraine war : What does it mean for crypto ?

That's a question most people in the finance industry wonder, as well as any world citizen lately, since the various announcements of banks freezing money and all transactions in countries such as Russia, Ukraine, as well as Canada and Lebanon recently too.


Since the war started, Ukrainians have to escape their home country and Russians can no longer :


  • WITHDRAW MONEY

  • USE THEIR CREDIT CARDS

  • BUY US DOLLARS OR ANY OTHER WESTERN CURRENCIES

  • TRADE IN THE STOCK MARKET

  • BUY ANY WESTERN GOODS (AS MOST BRANDS, INCLUDING APPLE AMONGST OTHERS, STOPPED FULLY THEIR SELLING ACTIVITIES IN RUSSIA)

As bad as the current situation is, disruption creates an opportunity.


Crypto is an alternative system that is apolitical and borderless. It doesn't stop because there is a war nor does it stop working because you cross a border.


Bitcoin and Ethereum cannot be stopped nor frozen, which creates a “shadow economy” for anyone who has an internet connection.


People choosing to hold a chunk of their savings in crypto instead of fiat currencies (dollars, euros, ruble, etc) are hedged against geopolitical events such as wars, because they can be in full control of their crypto currencies.


What’s happening in Russia, Ukraine, and like what happened in Canada lately, creates a ripple effect as other countries and their citizens watch carefully and think:


“Could this happen to us too? Could I get my bank account frozen because I am protesting, like what happened in Canada? Or even scarier, could they decide to “freeze my central bank” (like what happened in Russia where the us dollars and the euros are frozen)?


The current geopolitical situations we’ve witnessed lately in first world countries shows the limitations of the current financial system (where the currencies can be “weaponized” or frozen at will).


This makes more and more people realize that the alternative financial system (crypto) can make sense for a chunk of their savings / investments, because no one can seize, freeze, or ban bitcoin, Ethereum or other crypto assets.


This does not mean that crypto markets should pump in the short term though. When the broad markets sell off and liquidity events happen, crypto tends to sell off first and the hardest (which is not certain to happen but could happen).


However, in the longer term, more people realize the benefits and need of sovereign money (such as BTC) and adoption increases, which will result into higher crypto prices at some point.


2 Take aways from this blog post :

1) Governments can freeze your bank accounts at will (even in the developed countries) and can also freeze central banks (which never happened before), but they cannot freeze bitcoin and crypto.


2) The war is showing the limitations of the current financial system, which proves the case for bitcoin and the crypto economy.


These statements and text have been written by Kevin, with the help of Cindy, taken from one of Kevin's greatest podcast with Alex Mashinsky, CEO Celsius.Network | VOIP2MOIP | 3X Unicorn Founder | TransitWireless | Arbinet | $3B in Exits $1B $ raised @mashinsky · Celsius Network.


You can watch the full podcast video interview here:



Follow @crypto.with.kev for daily info about crypto and make sure to subscribe to Yield Labs to stay updated with the latest crypto news and watch the most amazing interviews with the world's biggest crypto leaders and CEO's !


Hope this post is helpful to you !


See you soon!

Hugs,

Cindy

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Hi ! Coucou ! Hola !

I am Cíndy, a 32yo Swiss Digital Entrepreneur & Blogger since 2016.

 

Ex-Wedding & Events Planner across the globe, I am now working as Creative Digital Consultant & Coach at my own small biz CocoStories Agency.

 

I write blog posts in order to inspire and motivate Millennials & Gen Z women to invest in themselves and their future:

Financially, Mentally & Physically.

Proving & showing women in English, French and Spanish language that Crypto and Investing ain't just a geek guy thing!

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