Bitcoin becomes priority alternative when cash fails

[noorman0]

Actually this epic moment happened in Ukraine, I don't know how difficult it is to get cash there (even using e-money). Someone sells "a Legendary Car" with bitcoin. View more...

Another milestone that bitcoin really serves as an alternative currency especially in times of urgency, bitcoin is really valuable for someone to survive. Because urgent situations are not just about war, calamities can also have more severe repercussions. I think this is a perfect consideration for any government not to be too strict on bitcoin regulations.

(The point of this thread is not about Ukraine situations specifically, but to the experiences of the people on this story.)

[Fortify]

Actually this epic moment happened in Ukraine, I don't know how difficult it is to get cash there (even using e-money). Someone sells "a Legendary Car" with bitcoin. View more...

Another milestone that bitcoin really serves as an alternative currency especially in times of urgency, bitcoin is really valuable for someone to survive. Because urgent situations are not just about war, calamities can also have more severe repercussions. I think this is a perfect consideration for any government not to be too strict on bitcoin regulations.

(The point of this thread is not about Ukraine situations specifically, but to the experiences of the people on this story.)

Actually you can argue exactly the opposite - when you are surrounded by devastation with no water, electricity or maybe even food - then it is highly unlikely you'll have access to an internet connection that could allow you to move such crypto funds around easily. Cash is king in that scenario (provided it's not the Russian ruble) but more likely things like gold are useful for bartering your way. Most of the world is privileged to exist in a relatively stable environment, but the sheer devastation that has been wrought on parts of Ukraine mean that it's much easier to transact in physical goods and makes hard cash more important than ever, provided it is relatively low volatility like USD.

[Poker Player]

Bitcoin is created to support fiat currency and that's why I'm saying some people is misquoting Bitcoin from fiat currency,

You have homework to do. Read this: A Peer-to-Peer Electronic Cash System

Bitcoin was created as an alternative to the shitty fiat currency system of central banks.

And to the point of the thread, I don't think it's that big of a feat either. In this case they had Bitcoin (I guess on mobile) and no cash, but let's imagine that where they were they didn't have working internet. Or that they had lost or broken their cell phone. If they had taken cash with them instead of hoping to get it from an ATM, it would have been enough to buy the car.

[pooya87]

Cash is king in that scenario (provided it's not the Russian ruble)

This sentence, mainly the parenthesis, got me thinking of how messed up and manipulated the centralized world is.
Think about it in comparison.
Ukraine is being invaded, it has lost a lot of its infrastructure, its economy doesn't exist, the military is mostly destroyed, millions have fled the country, analysts claim Putin's plan is scorched-earth strategy, ... and yet Ukraine fiat only dumped 5% which makes no sense!
Then we have Russia that is the invader, hasn't lost any infrastructure since there is no attack on Russia!, hasn't lost anything economy wise, the sanctions are mostly jokes that don't really target the economy (eg. sanctioning Russian cats, athletes, porn sites,etc.) and yet Russian fiat tanked 40%!

Sorry to go off-topic but it was an interesting observation that I can only explain as market manipulation (I'd love it if someone could explain any other reason opposite of what I said).

[Wind_FURY]

OP, I believe the priority alternative for the entities that matter is Gold. Central Banks will buy Gold with U.S. Dollars because Gold simply has the precedent of acceptance around the world. Humans have valued Gold for more than 5,000 years. BUT, in due course, I'm very confident Bitcoin will be used for international trade for more efficiency. Gold can't be shipped back and forth efficiently.

[stompix]

Sorry to go off-topic but it was an interesting observation that I can only explain as market manipulation (I'd love it if someone could explain any other reason opposite of what I said).

Pretty simple!

In Russia, everyone tries to get dollars including the government which banned dollars purchases, driving a black market which in some reported cases goes to 300 rubles for a dollar, the government is desperate for foreign currency and the lack of it does what you see happening.
In Ukraine, the country is flooded with billions in aid, poeple received a ton of donations which have to be converted in local currency, doing the exact opposite as it happens in Russia, driving the offset between demand and offer down, just the proposed help to date is about 1/3 of the monetary mass in the country.

Besides, unlike Russia, Ukraine has the definitive backing of two major real global powers, that makeup half of the world GDP, nominal as PPP has zero importance when it comes to currency rates, what Russia has is a fear of backstabbing by the 3rd largest.  

Also, neither Venezuela nor Iran nor Turkey nor Argentina got into a war on home ground, their currencies are still shit.

[Rockstarguy]

This time Russia-Ukraine are in this critical condition this is the time when People will get to understand bitcoin the more and the benefits. This is the time people in that region will convert their fiat to bitcoin to make purchase of things for consumption,  this time the bank won't be useful to keep money bitcoin will be use as currency to make things very easy for people.

[TheNineClub]

Actually this epic moment happened in Ukraine, I don't know how difficult it is to get cash there (even using e-money). Someone sells "a Legendary Car" with bitcoin. View more...

Another milestone that bitcoin really serves as an alternative currency especially in times of urgency, bitcoin is really valuable for someone to survive. Because urgent situations are not just about war, calamities can also have more severe repercussions. I think this is a perfect consideration for any government not to be too strict on bitcoin regulations.

(The point of this thread is not about Ukraine situations specifically, but to the experiences of the people on this story.)

I mean, sure, it worked, but I can't really see this happening too often. And in this case, it was a car, but can it buy some canned food? A blanket? Pay your electrical bill? In some countries, yes, but it's not as widespread as we would like to think. So, while it can be of help in certain situations, it's not really a solution until it can fully be replaced to buy anything FIAT could, and I am not sure it would happen, I am not sure if it's even envisioned to be that.

[Cearea11]

Actually this epic moment happened in Ukraine, I don't know how difficult it is to get cash there (even using e-money). Someone sells "a Legendary Car" with bitcoin. View more...

Another milestone that bitcoin really serves as an alternative currency especially in times of urgency, bitcoin is really valuable for someone to survive. Because urgent situations are not just about war, calamities can also have more severe repercussions. I think this is a perfect consideration for any government not to be too strict on bitcoin regulations.

(The point of this thread is not about Ukraine situations specifically, but to the experiences of the people on this story.)

I mean, sure, it worked, but I can't really see this happening too often. And in this case, it was a car, but can it buy some canned food? A blanket? Pay your electrical bill? In some countries, yes, but it's not as widespread as we would like to think. So, while it can be of help in certain situations, it's not really a solution until it can fully be replaced to buy anything FIAT could, and I am not sure it would happen, I am not sure if it's even envisioned to be that.

As you said, population is still too unaware of the crypto currencies. It's a too volatile market and people don't want to risk their hard-worked money, in a critical situation for buying (doing) what? I don't think it's not possible to get food, pay bills using BTC. Maybe it can be helpful in a niche market, but it will not spread among all the country.

[romero121]

The real purpose for which bitcoin is being innovated is getting fulfilled. To overcome the flaws in the fiat system blockchain evolved as a solution with the bitcoin developed over the platform. Initially people are not in a situation to believe it as an alternate to the fiat, but it was always termed as a solution to launder money and as a value storage asset for illegal and gambling needs. Slowly this gained importance as an investment.

With the ongoing war the usage of bitcoin peaked as it is the only solution with which Russia is able to escape the sanctions. Ukraine on the other side have legalized crypto and the outcome is the incident mentioned by OP.

[avikz]

This is a country specific matter due to which there is an influx of bitcoin purchase transactions. But if I try to find out the same trend worldwide, I don't see any credible source of information that says bitcoin has become the world's favorite reserve currency for individuals.

Nope! Bitcoin has not yet reached that level. The capital protection leader is still gold and other precious metals. There's no proof that majority of the population is buying bitcoin for the unforeseen emergencies. What's happening in Ukraine, is an exception!

[worldtraveller321]

One has to realize the governments and banks are not going to go away anytime soon. Government systems and banking systems have been around as long as gold. Thousands of years. Sure there can be a change in government and bank systems. They are not going to go away. Some banks are now getting into crypto as well. Same with governments.  Some governments more in the future will make BTC as a legal tender. Probably happen.  There will always be some sort of centralization in everything.

Keep in mind., for many people , they have more confidence in using a bank for their finances vs using a private company. Private company being like for example Binance, Kraken, Coinbase etc for their finances. Even if more people used crypto as their main finance, many would have more confidence to a bank.

Just the way it is.

Yes a few years ago, the banks shunned crypto as it would cause havoc in their platform. Since most banks only dealt in fiat and precious metals.

Now the banks are looking more into crypto. Which is probably smart. As now they can deal with that system and keep their  business platform.

That how it is.

More or less we are just moving from one money system to another. The higher up control will always be there at some point.

[tbct_mt2]

Bitcoin becomes a favorite asset for people when the more of them realize how fast fiat currencies lose their purchasing power because of over printing from governments.

It does not come from the pandemic only. I do know the pandemic makes inflation worse globally but it is not a main reason for it. The pandemic fortunately reveals the truth about governments, central banks and fiat currencies that do bring more proofs for people to realize value of Bitcoin.

The war in Ukraine is another tip of iceberg and not the main reason why Bitcoin has become more popular and more widely accepted globally.

[Raymond Gary]

Actually this epic moment happened in Ukraine, I don't know how difficult it is to get cash there (even using e-money). Someone sells "a Legendary Car" with bitcoin. View more...

Another milestone that bitcoin really serves as an alternative currency especially in times of urgency, bitcoin is really valuable for someone to survive. Because urgent situations are not just about war, calamities can also have more severe repercussions. I think this is a perfect consideration for any government not to be too strict on bitcoin regulations.

(The point of this thread is not about Ukraine situations specifically, but to the experiences of the people on this story.)

Bitcoin is as we speak has gradually started showcasing it's user case , And this why it was created initially to solve the problems that fiat currencies could not solve and this is one of them [inflation hedge] in the time of geopolitical challenge ,Economic challenge etc.
Satoshi forsaw all this problems facing the world at large and hence created Bitcoin to become a safe heaven like during era of Gold.

[sunsilk]

It had worked for Ukraine when infras were destroyed where could be data centers, banks and other finance related buildings were operating that led them to stop operation so using and owning cash there is truly a big problem.

In times like this, it's proven that bitcoin has remained strong and usable and it's also a place to save wealth by those affected people. It's an all-in-all asset that can be considered when the bad and worst times come like a war.

[evilgreed]

                 While buying the car with bitcoins in that situation is a good thing, it is not such a huge achievement. But regardless, an achievement is an achievement which helps worldwide mass adoption. The thing is that even with the situations in Ukraine, bitcoins or any crypto currency is not a solution unless you are leaving the country. This is because there won't be any way to access your cryptos when electricity goes out. You'd be hetter off carrying cash, jewelry or anything that has value which you can trade with necessities.

[kryptqnick]

Actually this epic moment happened in Ukraine, I don't know how difficult it is to get cash there (even using e-money). Someone sells "a Legendary Car" with bitcoin. View more...

Another milestone that bitcoin really serves as an alternative currency especially in times of urgency, bitcoin is really valuable for someone to survive. Because urgent situations are not just about war, calamities can also have more severe repercussions. I think this is a perfect consideration for any government not to be too strict on bitcoin regulations.

(The point of this thread is not about Ukraine situations specifically, but to the experiences of the people on this story.)

It's an interesting story, and I do believe that the war motivated the increased usage of Bitcoin. However, this only works under fairly peaceful conditions and in places with stable Internet connection. Local fiat is currently the most handy thing to have in small towns and generally in places which are under blockade or where electricity is down because of the war. In other places, getting cash is often very challenging (because the ATMs are running out of it), but paying with card is almost always an option. I'm glad they found a way to buy a car with Bitcoin, but they said it was in central Ukraine, and central Ukraine is one of the least affected areas by the war so far.

[Wind_FURY]

Sorry to go off-topic but it was an interesting observation that I can only explain as market manipulation (I'd love it if someone could explain any other reason opposite of what I said).

Pretty simple!

In Russia, everyone tries to get dollars including the government which banned dollars purchases, driving a black market which in some reported cases goes to 300 rubles for a dollar, the government is desperate for foreign currency and the lack of it does what you see happening.
In Ukraine, the country is flooded with billions in aid, poeple received a ton of donations which have to be converted in local currency, doing the exact opposite as it happens in Russia, driving the offset between demand and offer down, just the proposed help to date is about 1/3 of the monetary mass in the country.

But wouldn't the Russian government start avoiding accumulation of U.S. Dollars currently that they are sanctioned from using it? All Dollars held within Russia and in Russian banks are essentially "erased" from the ledger.

[hatshepsut93]

Actually this epic moment happened in Ukraine, I don't know how difficult it is to get cash there (even using e-money). Someone sells "a Legendary Car" with bitcoin. View more...

You don't need to send cash to Ukraine, because Ukraine's electronic payment systems are fully operational. If a person refuses to accept them and wants cash, chances that they will accept Bitcoin are actually pretty low. If you think that a 50 y.o. dude from Ukraine who only uses the Internet for Facebook and Telegram will be interesting in listening in a lecture about the benefits of Bitcoin while being in the middle of war trying to sell his car to the highest bidder, you are a bit unrealistic.

Still, it's nice that Bitcoin exists and is being used and is helpful in extreme situations. Just don't think that this is a common occurrence.

Ukraine is being invaded, it has lost a lot of its infrastructure, its economy doesn't exist, the military is mostly destroyed, millions have fled the country, analysts claim Putin's plan is scorched-earth strategy, ... and yet Ukraine fiat only dumped 5% which makes no sense!

You are drinking some Russian state kool-aid if you think that Ukraine is on a verge of defeat and destruction.

Then we have Russia that is the invader, hasn't lost any infrastructure since there is no attack on Russia!, hasn't lost anything economy wise, the sanctions are mostly jokes that don't really target the economy (eg. sanctioning Russian cats, athletes, porn sites,etc.) and yet Russian fiat tanked 40%!

Russian trade with the West got obliterated while Ukraine's trade will only ramp up. Again, if you think that the current sanctions are a joke, it only means you're consuming Russian propaganda in large quantities.

[stompix]

But wouldn't the Russian government start avoiding accumulation of U.S. Dollars currently that they are sanctioned from using it? All Dollars held within Russia and in Russian banks are essentially "erased" from the ledger.

No, money held by the central reserve and their own banks in their OWN accounts and not overseas accounts as collateral is not touched by these sanctions and the Russian government needs dollars because it has debts to pay, one was just the other day, it has to pay the debt of the companies that are owned by the state, the sum is of around 150 billion, that's why they had reserves in foreign nations, to back up this debt as collateral, not because Russia managed miraculously to set aside 30% of their GDP in savings in 3 years.
If they can't service the debt there will be a default, and if their own companies can't do that either there will be bankruptcies, and assets are going to be seized.
It's the USSR all over again, what other choice do they have than getting dollars? Do you think China will accept rubles for their stuff?