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Highlights
- Ukraine is said to have received millions of dollars in donations in the form of cryptocurrencies
- This development shines the spotlight on these assets’ capability to move quickly due to the non-existence of intermediaries like central banks
- How Bitcoin and other cryptos will fare in the longer run remains a speculation as of now
There is little doubt that cryptocurrencies are popular globally. This fact received a major boost when Ukraine, which is reeling from Russia’s invasion, sought donations in cryptocurrency.
Ukraine crypto donations
It is being reported that the Ukrainian government’s official Twitter handle cited two wallets to let donors transfer crypto assets as donations. It is being said that one of the wallets is accepting BTC, the largest crypto asset, while the other is accepting Ether and Tether, the latter being a stablecoin.
As of writing, reports suggested that the wallets have received millions in cryptocurrency donations. One report also suggests that some of the donations came from the sale of non-fungible tokens (NFTs), which have become popular digital assets. In a separate development, a Ukrainian minister also used Twitter to seek a ban on Russian crypto users’ addresses in the wake of the ongoing war.
Also read: Russia-Ukraine war: Possible impact on cryptos & can BTC prove utility?
How are cryptos faring amid the war?
Cryptocurrencies are faring with the same volatility that they usually manifest. Immediately after the war declaration, major crypto assets including Bitcoin fell very sharply, mirroring the bearish trend in the global stock markets. However, cryptos quickly rebounded the next day.
As of writing, Bitcoin had lost over two per cent over 24 hours, and other famous cryptos like Dogecoin and Shiba Inu were also in the red. It is notable that Bitcoin and most other cryptocurrencies are trading below their all-time high value, with seemingly no immediate respite in sight.
Also read: 5 cryptos under one cent to watch in 2022
Will Bitcoin emerge from the low?
After Ukraine’s move that allows crypto donations, it may be a possibility that cryptocurrencies’ alleged capacity to move quickly within the global payments system may become a talking point. Second, BTC and other cryptos have become popular and many retail and institutional investors have invested in them despite the underlying price volatility. This may have gone into Ukraine’s decision to accept donations in these assets.
There is also a concern among a few experts that Russia, which has come under crippling sanctions due to the war, may use cryptocurrencies to evade them. The West has also imposed restrictions on Russian banks’ SWIFT access, which some claim may divert them to cryptocurrencies. If such a thing happens, maybe cryptos might find a little more utility.
Data provided by CoinMarketCap.com
Also read: What is Talking Ben crypto & is the BEN coin safe?
Crypto predictions for 2022 and beyond
Predicting about crypto assets, be it Bitcoin or an altcoin or NFTs, is nearly impossible. A few prominent investors like Warren Buffett condemn them, while a few like billionaire Elon Musk, who also helped Ukraine get internet access during these tough times, seem to be in favor of cryptos.
Cryptos’ prices may go north in the coming months if these assets can demonstrate their real-world utility and acceptance. But at the same time, if more countries like China take a decision to ban them, cryptos may fall sharply.
Viewpoint
The Russia-Ukraine conflict is making the most headlines today, and Ukraine’s tweet that seeks donations in cryptocurrencies has also made many heads turn. How this development benefits the crypto universe is yet to be seen, but at least for now, this may have lifted the spirits of crypto enthusiasts.
