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Why did the rich Russians buy bitcoins?

BingMag.com Why <b>did</b> the <b>rich</b> <b>Russians</b> <b>buy</b> bitcoins?

Due to the Russian invasion of Ukraine in the past few weeks and the ensuing war, Russian citizens have begun to buy bitcoins and other cryptocurrencies. . The war has put Russia under the most severe economic sanctions. But many believe that the impact of this war goes far beyond the change in the Russian or Ukrainian economy and could affect many areas, including the cryptocurrency.

As the conflict escalates, many oligarchs and the rich The Russians have begun to buy large quantities of bitcoin. But what is the reason for this?

What has the situation been like in Russia so far?

While Ukraine is receiving global aid, Russia, on the other hand, is starting a war every day under There will be more sanctions. The United States, the European Union, the United Kingdom, Japan, Australia, and many countries in line with Western Hemisphere policies have imposed sanctions on Russia and restricted or cut off access to many international financial services, including a network of exchanges. Swift International Bank noted.

The fever of the embargo has even reached well-known companies and brands, and many companies have either imposed sanctions on Russia or suspended services in the country. As a result, there is a lot of pressure on the Russian economy, and Russian citizens are worried about the sharp devaluation of their national currency, the ruble. This concern is not unreasonable, as the ruble has fallen sharply so far and it looks like the decline will continue as sanctions increase.

BingMag.com Why <b>did</b> the <b>rich</b> <b>Russians</b> <b>buy</b> bitcoins?

While many are watching the market, others have the financial ability to invest in other revenue-generating methods so that they can save themselves if the Russian economy runs into a severe crisis. Russian oligarchs are among them. Many of them amassed a large chunk of their wealth shortly after the collapse of the Soviet Union in 1991. The oligarchs have a lot of wealth, so they have the ability to take any kind of wealth.

But why, of all the assets available, has Bitcoin attracted the most attention of these rich people?

Why are Russian citizens looking to buy bitcoin?

BingMag.com Why <b>did</b> the <b>rich</b> <b>Russians</b> <b>buy</b> bitcoins?

First of all, bitcoin is a decentralized digital asset Which is not recognized by many banks and financial institutions around the world and is not considered a traditional asset, so it will be difficult to sanction, although its price fluctuates more than the national currency.

Bitcoin value At the same time, news of Russia's invasion of Ukraine fell, raising concerns that the war in question would have a devastating effect on the cryptocurrency market. However, bitcoin, along with altcoins, quickly returned to its former territory, as the conversion of the ruble to bitcoin increased dramatically. Converting Russia's national currency to bitcoin, or other cryptocurrencies, means that other people's assets have nothing to do with the Russian economy. Turned Russian. The main reason for this is the value of the tetra, which fluctuates almost equal to the value of the dollar; This means that as long as the US economy is stable, the value of Tetra is guaranteed. Such factors could help Russian citizens circumvent global sanctions.

  • What is the Digital Tetra Currency (USDT)?

However, Chang Peng Zhao, founder of Bainance Exchange, claims that cryptocurrencies cannot help the Russians circumvent sanctions because the current cryptocurrency market for Russia is too small. He believes that the cryptocurrencies do not have enough power to enter the world market and can not meet the hopes of the Russian oligarchs to circumvent the sanctions. Also, cryptocurrencies such as bitcoin are easy to trace.

In addition, the United States intends to boycott the Russian cryptocurrency market to prevent international transactions in the form of cryptocurrencies. So buying tokens in bulk may seem like a waste of time.

The cryptocurrency market may grow again as a result of these sanctions

BingMag.com Why <b>did</b> the <b>rich</b> <b>Russians</b> <b>buy</b> bitcoins?

While the situation between Russia and Ukraine is not good, the impact of this war and the subsequent sanctions imposed on the Russian economy have an unusual effect on the cryptocurrency market. As sanctions increase, more and more people are trying to circumvent them, and one of the ways that many people come up with is to use digital assets such as cryptocurrencies. For this reason, the value of various tokens, including Bitcoin and Tetra, is expected to continue to grow.

Source: Make Use Of

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