The world was horrified and anticipated a market meltdown when Russian armies invaded Ukraine in the past months, but the cryptocurrency market held up better than ever. Cryptocurrencies have emerged as our alternative financial system's guiding light. They have provided us with fresh avenues for charitable giving (the Ukrainian government has begun to accept cryptocurrencies. Millions of dollars have already been raised in donations). The growing importance of crypto assets has thus been more evident than ever before and on a far bigger scale in the middle of all the confusion and uncertainty.
Rally in cryptocurrency prices: Facts and background
According to Mark Tencaten, the cryptocurrency market experienced a 10% decline after Russian President Vladimir Putin ordered a "military action" in Ukraine. But as usual, it quickly made a full recovery. With a new high, the value of cryptocurrencies has surpassed $3 trillion.
Bitcoin has increased by more than 15% in the past weeks from its previous low of 8%. Transactions on centralized Bitcoin exchanges in the Russian currency Ruble and the Ukrainian currency Hryvnia have increased to the greatest level in months since the crisis started, according to cryptocurrency data provider Kaiko.
Mark Tencaten explains cryptocurrencies have become an odd weapon in the Russia-Ukraine conflict, and both nations are using them for their own purposes, for better or worse. The crypto community is giving to Ukraine from around the world, while the Russian Ruble is looking for safety in digital assets. In response to Russia's invasion, a number of nations, including the United States, Australia, the European Union, and Japan, have imposed severe sanctions. As a result, the Russian paper currency is under a lot of pressure, which has allowed cryptocurrencies to rise.
Motives behind the rally
Cryptocurrency fluctuations are pretty common, but this time is different. Although there is still a global crisis, the market is more stable than before. The idea that digital currencies are secure investments is gaining significant traction.
There are some reasons for this that are unrelated to the conflict, while others are not.
· Rally driven by outside circumstances
The possibility of a third world war makes this moment frightening. Even in less dire circumstances than the one we're in right now, cryptocurrency traders have turned to panic selling. Therefore, the fact that they haven't yet is strange.
Because many HODLers have remained true to the abbreviation HODL, which stands for "Hold On for Dear Life," they are probably not panic-selling. Investors in cryptocurrencies known as "HODLers" purchase and retain their holdings despite market swings. One of the most successful cryptocurrency investment tactics is HODLing. What Mark Tencaten is trying to say is that HODLers are still HODLing in the current environment, despite everything.
· Worldwide use cases
The world is beginning to feel the potential of cryptocurrencies and the underlying blockchain technology. The crypto market hit so many milestones in 2021, and Non-Fungible Tokens (NFTs) saw explosive growth and financial gains that captivated the entire world.
The two most widely used cryptocurrencies in the world, Bitcoin and Ethereum, both reached record highs. Blockchain technology is advancing rapidly in 2022, and Decentralized Finance (DeFi) will have a big impact.
· DYOR
The expression "do your own research" (DYOR) is used frequently in the crypto sphere. Individuals are learning to DYOR more as crypto gets more widely accepted so they can comprehend the whys, hows, whats, and whens of purchasing crypto assets.
Regarding investment techniques, there is already a tonne of information available online—all the do's and don'ts, which tokens and coins to invest in, when to hold onto money and sell it, etc. DYOR assists investors in removing this information and minimizing false information.
Conclusion
As per Mark Tencaten, many bitcoin enthusiasts believe that the crisis between Russia and Ukraine will influence the way cryptocurrencies are used in the future. The inadequacies and weaknesses of the conventional financial system are being addressed by cryptocurrencies, putting to shame those who continue to term them "simply a bubble." They have functioned as a means of quick digital transactions as well as a store of value.
It remains to be seen if this will alter governments' perception of digital assets. However, others, including the governments of many nations, have already started to accept them, and the adoption of cryptocurrencies in many countries appears to be on the rise.
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