March 4, 2022
By Anjali Kochhar
For years, the world has trusted the power of gold. But, with changing times, the market is inclining towards investing in digital assets as experts believe cryptocurrencies can transform the picture of global finance.
The market view is that the current Russia-Ukraine crisis has a positive impact on the world of digital assets including cryptocurrencies.
In the past few days, the crypto market has gained sudden momentum with Bitcoin crossing the $45k mark after running bearish for the past several weeks.
Experts view the crisis to be “bullish”, especially for the world’s largest crypto Bitcoin.
U.S. billionaire Bill Miller has said that the Russia Ukraine crisis is “very bullish” for Bitcoin as the top coin is an asset for Russia that is not controlled by other countries just as gold is.
Speaking at CNBC Squawk Box Wednesday, Miller mentioned that Russia has almost 50% of its reserves in foreign currencies controlled by the United States and Europe. Hence, the country is looking for assets that are “impervious” to inflation.
As of 4.39 p.m. IST, Bitcoin was trading at $43,206, 22.95% higher compared to the previous week. The global market cap was at $1.90 trillion.
Raj Kapoor, chief advisor, Acryptoverse noted that the factors affecting cryptocurrencies including volatility and inflation are proving to be a “good hedge” in troubled times.
“Markets are realizing the value of decentralized virtual; currencies, as warlike situations may mean gold being locked into banks, accounts being frozen or limits on withdrawals but no impact on cryptos… no boundaries, no hassles, the power and wealth right in your palm,” Kapoor told Blockchain Asset Review.
However, he warned that this should not be taken to mean that the upward swing has commenced.
“But the signs that emerge are evident. The inevitability of the Russian invasion seems to be discounted for now and even as our stock markets crash, investors are looking at hedging their investments and the bear crypto market seems to offer some fundamentally good pickings,” he said.
In an important development, Ukraine is now accepting donations toward its military in cryptocurrencies and has expanded the number of coins as well since Russia’s invasion continues.
Kapoor pointed out that donations pouring in crypto can be encashed immediately and deployed compared to traditional systems.
“The world is waking up to a new order. Investors have historically relied on stable assets like gold in times of war, but cryptocurrency’s ability to separate itself from financial markets makes it perfect to invest in when other markets are volatile, with several experts even calling Bitcoin “digital gold”,” he said.
To gauge the situation, Blockchain Asset Review spoke to other industry insiders and here is what they had to say:
Charles Tan, head of marketing at global exchange Coinstore, said, “The global surge in inflation numbers, rising interest rates, and geopolitical uncertainty is driving investors to new-age crypto assets to secure their investments.”
“The traditional assets have failed to meet the aspirations of the people when it comes to creating long-term wealth. Crypto and blockchain have the power to liberate the global financial system and bring the global investor community on one common platform,” Tan told Blockchain Asset Review.
Shivam Thakral, CEO of BuyUcoin, said, “We strongly believe that blockchain technology has the power to transform the financial system of the world for good. The whole purpose of crypto and blockchain is to create a close-knit financial ecosystem that will make sending, receiving and lending, a hassle-free process.”
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.