Russia could use Bitcoin as a safe-haven against NATO States sanctions

As Russia, Ukraine war tension keeps intense, the Russian president Vladimir Putin could be thinking of making Bitcoin a safe haven to mitigate the sanction placed on his country by NATO and its states allies.

On Thursday, Russian soldiers officially set foot on Ukrainian soil in one of the most trying addition endeavours ever, denoting a finish to the months-long theories of an attack and setting off a huge load of authorizations from NATO and its partners on Russia.

President Vladimir Putin’s order to invade Eastern Ukraine in a “special military operation” triggered an immediate sell-off that resulted in over half a billion dollars in losses for the crypto markets while gold prices climbed to a 13 month high.

The crypto market is expected to fall more dipper following Russia's attack on Ukraine. Cryptocurrencies have effectively lost up to 15% and more plunge is expected.

Bitcoin market. Source Coinmarketcap

Right now, we are in the middle of a risk-off market. 

A risk-off market is when stocks are selling off and investors run for shelter to bonds or gold. 

This explains why Gold has appreciated by over 4% following the Russian invasion of Ukraine. Gold is considered a risk-off Haven in a Risk Market.

Spot gold price. source: goldprice.org

History shows that risk-off markets are only temporary and can present great buying opportunities. This means that while markets are crashing, new investors will rush to buy at a low price and hold for long term. 

However there's a twist about this particular risk-off market - it's wartime. Markets will not bounce back immediately and only long term holders will be rewarded massively.

Analysts are expecting Russia to turn to Cryptocurrency to cushion the impact of sanctions from NATO states. If this happens, the market will be bullish as bitcoin may become a legal tender between war zones and the rest of the world.

According to the New York Times, “Russian companies have many cryptocurrency tools at their disposal to evade sanctions, including a so-called digital ruble and ransomware”.

President Putin's new move to accelerate the making of a legitimate and monetary structure for Bitcoin has been deciphered as getting ready for sanctions by the west after his arranged activities in Ukraine.

Stacy Herbert, a co-host of the Orange Pill Bitcoin podcast submits that Bitcoin could be one of the main issues in the Russian versus NATO/US deadlock.

“Sanctions will inevitably be met with bitcoin; facts are neither positive nor negative,” she has been quoted as saying, urging Bitcoiners to be on the lookout.

Russia being the third-biggest Bitcoin mining country with a new report by Bloomberg showing that the country's residents hold digital currencies worth more than $214 billion which is around 12% of the all-out worldwide crypto assets' worth makes experts believe Russia will sufficiently manoeuvre the sanctions laid out for it, given that cryptocurrencies are permissionless.

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