Russia Ukraine Conflict — Impacts on Crypto
The #RussiaUkraineConflict has been trending all over social media for the last few days amid numerous humanitarian efforts announced by countries, global leaders and international organisations. In the middle of all this chaos and information overload, maybe you missed how the web3 and especially the crypto community has been an integral part of the efforts to help Ukraine.
But before we look at all the aid provided by the crypto community to the invaded nation, let’s look at how this war has made a big impact on the web 3 industry as we know it, especially the crypto market. As the news of the war broke on 24th February, 2022, just like any other financial markets around the world, the crypto market also tanked. All major crypto currencies like Bitcoin, Ethereum, BNB, XRP and others fell sharply.
Ukranians have been active on crypto exchanges anticipating the war and buying stablecoins like USDT in droves as reported by the mint. The Ukrainian exchanges are still seeing the massive buying of stable coins and are operating but are not sure of their future as the war progresses. The trends we saw from the beginning of the war until today can be summarised as
- Initial slump in the crypto market due to fear of war and uncertainty.
- Heightened activity of Ukranians buying stable coins to preserve what they have.
- Increase in crypto mining in Russia to avoid sanctions and a heavy impact on mining in Ukraine and many more as we speak.
Russia is already the 3rd biggest crypto mining country in the world after the US and Kazakhstan. In fact, Russian Bitcoin miners accounted for 11.2% of the global BTC hashrate according to a report. Amid all of this, a global crypto regulation is being called for as countries are divided on their opinion on crypto currencies, their regulation and stance on other underlying aspects.
If Russia manages to control the crypto currency mining and use it to its advantage, it would go to full scale war without being bothered about any sanctions. They might be able to drastically reduce any pressure from the world leaders and international organisations just because of the leverage they have due to the crypto mining. Countries like Iraq have used the same technique successfully while countries like North Korea have resorted to hacks to get access to crypto currencies for themselves. Whether it’s the current war, the 3rd wave of COVID19 outbreak in India or even floods in the Indian state of Kerala, the crypto community has always shown willingness to help in all of these causes and has acted swiftly. Crypto has shown that it’s a viable solution when there is an urgent need to be fulfilled and the decentralised nature and transparency of transactions through blockchain are its biggest strengths.
The war may have resulted in the slump of the prices of the crypto currencies, but it has also allowed the government to resist the invasion by getting donations to the tune of $4 million USD in Bitcoin for its army and the government as is evident from the pinned tweet on the official twitter handle of the country. The events have shown us time and again that crypto currency & the whole web3 ecosystem is capable of solving a lot of issues and can have myriad positive changes in the world and should be allowed to flourish. The governments around the world need to regulate this ecosystem to avoid any negative use of the newer technologies but the innovations have already proved that they can bring a positive change to the world we live in.
Adding to that positive change, we at bitsCrunch are committed to making the NFT ecosystem more transparent and safe for the whole community. Do check out our website to know more about our efforts on making the NFT ecosystem better for the community.