Is the Russian-Ukrainian conflict a long-term threat to cryptocurrency?
While the armed war between Ukraine and Russia may appear to be confined to a military level, it is likely to have far-reaching consequences for much of the world. Economic analysts expect it to trigger a dramatic rise in inflation partly because Russia is the world’s biggest exporter of natural gas and second-largest seller of oil. In addition, hundreds of thousands, if not millions, of people will be displaced from Ukraine, posing a new refugee issue for the world (and specifically Europe). Furthermore, there’s cryptocurrency. While many people aren’t focusing on the cryptocurrency market and industry at the moment, there’s no doubt that the protracted fight will affect Bitcoin. There is no doubt that it has already had some effects, particularly since Bitcoin dropped by more than 10% in a single day in response to the initial rumors of a Russian invasion on February 24. Russia’s potential escape from sanctions by using crypto may result in increased regulation of the business in the West, but the conflict may benefit the market.