Cryptocurrency and the war in Ukraine
According to experts, Russia’s invasion of Ukraine on February 24 has increased volatility in the cryptocurrency market.
That’s why most investors should stick to the major two cryptocurrencies, Bitcoin and Ethereum, and only invest what they’re willing to lose, or less than 5% of their overall portfolio, according to experts.
Despite this, proponents of bitcoin argue that it is superior to alternatives such as cash, bank accounts, or other physical assets like as gold or real estate since it is decentralized and easily transportable. While crypto is volatile, it is less so than the fiat currencies or markets of some countries. The Turkish lira became more volatile than bitcoin earlier this year, prompting several Turks to exchange their fiat money for bitcoin and Tether.
Prioritize crucial elements of your budget over bitcoin investments, such as emergency savings, paying off high-interest debt, and saving for retirement. Stick with a prominent, high-volume cryptocurrency exchange like Coinbase or Gemini, which proactively complies with growing federal and state regulators, while buying and trading crypto.
For the time being, we don’t know how crypto will influence international conflict, or whether it will ultimately benefit or harm. People escaping war zones may find a unique purpose for cryptocurrency, but they must first learn how to use it. Alternative than digital currencies, there are plenty of other ways to raise and move money. While cryptocurrency may make it simpler to avoid sanctions, countries had been dodging them even before bitcoin.
What we do know is that bitcoin and other cryptocurrencies have become a significant player in global economies and wars. Crypto is doing what its proponents claim it does — offering people a way to work outside of established financial institutions — and whether it’s good or harmful amid warfare.
Ukraine has raised more than $56 million as bitcoin donations pour in to support the war against Russia.