The world is once again a very uncertain place with the Russian forces invading Ukraine. This left people across the world shocked and concerned. Everyone expected the markets to crash. However, the crypto market stood stronger than ever. Once again cryptocurrencies have become the leading light as an alternative financial system.
Through cryptocurrencies people have been able to make donations with the Ukraine government now accepting crypto. This has resulted in millions of dollars’ worth of donations sent to Ukraine to help the country and support Ukrainians.
In the midst of all the chaos and uncertainty, the emerging role of crypto coins has proven itself once more. Crypto coins have become clearer than ever before, and on a much wider scale too. Just as crypto coins have done before, they are once again becoming a more mainstream part of the financial system around the world.
When Russia announced a military operation in Ukraine, the crypto market plummeted by around 10%. However, as always happens in this fast-paced market, it recovered, in practically no time at all. The crypto market went on to hit a new target, it is now worth more than $3 trillion.
The oldest crypto coin was down by 8% when the conflict was announced. It has since risen by over 15%. In fact, research shows that after the conflict began transactions on a centralised crypto coin exchange in the Russian Ruble and Ukrainian Hryvnia have risen to the highest in months!
The conflict between Russia and Ukraine has turned cryptocurrencies into an unlikely weapon. Both countries are leveraging crypto coins for their own benefits, for better, and sadly for worse. Ukraine is able to receive donations through crypto communities from across the globe. Meanwhile, as various countries place heavy sanctions on Russia in response to their invasion, this has made it possible for crypto coins to really rally.
While politics will also cause cryptocurrencies to inflate and deflate, this time is quite different. Despite the crisis going on all over the world, the crypto market is stronger than ever.
There are a lot of external factors that are driving the rally of crypto coins. For example, HODling. It is a scary time right now as there is a third world war that is potentially looming over us all. For many crypto traders this often leads to panic selling. However, this has not happened yet. This is likely to be because of many HODlers staying true to their name. HODL stands for “Hold On For Dear Life” and this is exactly what many crypto traders are doing. They are buying and holding their crypto assets, regardless of the market fluctuations.
As cryptocurrencies have become more mainstream and well-known around the world, more people want to get involved. There has been a real growth in the common crypto phrase DYOR, also known as Do Your Own Research. People are taking the time to learn about the how’s, why’s, what’s and when’s of buying crypto coins for themselves. There is so much misinformation out there, not through us of course, that people are taking more time than before to filter the information they need and to reduce misinformation.
There are also conflict-related reasons that drive the rally of cryptocurrencies too. These include, (as already touched on) crypto donations. On 26th February the Ukrainian government appealed to the crypto community to donate to the country to help and support them. While many countries across the rest of the world have been using crypto for some time and it has been paying off well for them, this is new for Ukraine. They have had over 1,000,000 crypto donations and this has resulted in over $54.7 million worth of donations to the country. At times of conflict and worldwide disasters, it is difficult to rely on the banks. This is where crypto currencies come into their own. Crypto has come to rescue for countries like the Ukraine. While it has also come to the rescue for Russia too, time will tell if this is a good thing or a bad thing. However, right now. Both the countries need a financial system where no government is involved and a system that is relatively anonymous. This is where cryptocurrencies have been the shining armour, saving the day.
The conflict between Russia and Ukraine is being viewed as many crypto enthusiasts as a game changer in the crypto market. Whether this is true or not, is to be seen. However, one thing cannot be ignored. It is certainly showing those dis-believers that crypto isn’t just a bubble or a latest trend. It’s growing and it’s here to stay.
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