Bitcoin having effect on the ongoing war

[Sexylizzy2813]

The ongoing war between Russia and Ukraine has shed more light on how digital currency is being used for military aid, since the invasion the Ukraine government have turned to social media and asked for the donation of Bitcoin, stablecoin and every other cryptocurrency.

From all indication the response was massive with over 100,000 people are contributing to help out Ukraine to improve there military effort in the war. One could never believe that helps could come from different people all over the world to assist Ukraine, to be frank with you, some individuals would have thought that NETO are the only ones helping Ukraine.
According to Ukrainian deputy digital minister Alex Bornyakov, the country has been using crypto to purchase fighting essentials like bulletproof vest, drones and other military gadgets/equipment.

https://bitcoinist.com/crypto-accepted-by-60-of-ukraine-weapons-suppliers/

[1714122453]

1714122453

[1714122453]

1714122453

[1714122453]

1714122453

[YOSHIE]

The ongoing war between Russia and Ukraine has shed more light on how digital currency is being used for military aid, since the invasion the Ukraine government have turned to social media and asked for the donation of Bitcoin, stablecoin and every other cryptocurrency.

According to international law the conflict between Russia and Ukraine already occurred in 2014, heating up the war as we see missiles hit in early 2021-2022, While Bitcoin at that time was traded as usual, we also see the same thing happened to Afghanistan, Iraq especially the Middle East, the fact that Bitcoin has no overall impact in fact we know these countries are at war.

In terms of what law does Bitcoin affect the Russia & Ukraine war....!

If you talk about the assistance distributed with Bitcoin from the two countries, I think that's a natural thing because Bitcoin has technological properties (Peer-to-Peer), all of this will make it easier for warring countries to make transactions without involving other parties, in my opinion if it is only used as a transaction it will not affect Bitcoin towards the war between the two countries in question.

[jossiel]

The effect for Ukraine and Russia is positive if we'll just talk about the usage of bitcoin. Since the sanction that have been placed on Russia, most payment solutions have stopped operating on their end so, they've got no choice but to choose some ways of transferring and doing transactions by avoiding the sanction and that's through bitcoin AFAIK.

Whilst for Ukraine, it's really helpful because of how quick the transfers and helped come their way.

It's all about the usage but sad to see that this war is still going on and everyone is wishing that this have to come to an end.

[zasad@]

Cryptocurrency will not help win the war.

https://www.wsj.com/articles/north-african-countries-snap-up-russian-oil-products-shunned-by-west-f63aa287

"North African countries picked up the slack.

Morocco’s imports of Russian diesel, which stood at around 600,000 barrels for the whole of 2021, surged to 2 million barrels in January, with at least a further 1.2 million barrels expected to arrive in the country in February, according to data from Kpler. Algeria and Egypt have also seen an uptick."

All these sanctions are a big circus. Now European companies are buying non-sanctioned Russian oil in North Africa.

[pawel7777]

According to Ukrainian deputy digital minister Alex Bornyakov, the country has been using crypto to purchase fighting essentials like bulletproof vest, drones and other military gadgets/equipment.

https://bitcoinist.com/crypto-accepted-by-60-of-ukraine-weapons-suppliers/

I have my doubts about whether this is true. Sure, I can imagine that any supplier would be happy to accept any sort of payment that suits the buyer if they're making huge orders, but why would they choose crypto if they have no trouble converting to fiat?
And lets do not forget that Ukraine was ranked very low in the least corrupt countries rank, so there's a big chance that a portion of those donations landed in some private wallets rather than going to suppliers.

[dansus021]

this is can be proof that cryptocurrency is future-proof. Of course in war financial sanctions and a temporarily paralyzed system will hit hard, and in this condition cryto is can be used since crypto has no border.

not Long ago we actually see that "Iran Approves Use Of Cryptocurrency For Imports To Bust Sanctions" - https://www.iranintl.com/en/202208293261

Maybe this just beggining.

[virasog]

The effect for Ukraine and Russia is positive if we'll just talk about the usage of bitcoin. Since the sanction that have been placed on Russia, most payment solutions have stopped operating on their end so, they've got no choice but to choose some ways of transferring and doing transactions by avoiding the sanction and that's through bitcoin AFAIK.

I don't know how you claim that bitcoin has a good effect on its price due to war? If there is instability in the world, people will not invest in any currency which is volatile.

Yes, Russia has no option but to use bitcoin as a payment solution if all other doors are closed for them but they need the other party (government) to accept bitcoin payment too. The fact is our global economy is based on the US dollar and bitcoin can't stand in front of it. We still see US economic indicators or KPIs like CPI data, and employment data to determine the pump and dump of bitcoin price. That is how immature is the bitcoin market at the moment.

It will take a decade or so when bitcoin will stand out and the world may start accepting it on government levels.

[Baofeng]

The effect for Ukraine and Russia is positive if we'll just talk about the usage of bitcoin. Since the sanction that have been placed on Russia, most payment solutions have stopped operating on their end so, they've got no choice but to choose some ways of transferring and doing transactions by avoiding the sanction and that's through bitcoin AFAIK.

I don't know how you claim that bitcoin has a good effect on its price due to war? If there is instability in the world, people will not invest in any currency which is volatile.

And so are traditional markets, but what bitcoin does though is to hedge their against this inflation due to war in Europe.

Yes, Russia has no option but to use bitcoin as a payment solution if all other doors are closed for them but they need the other party (government) to accept bitcoin payment too. The fact is our global economy is based on the US dollar and bitcoin can't stand in front of it. We still see US economic indicators or KPIs like CPI data, and employment data to determine the pump and dump of bitcoin price. That is how immature is the bitcoin market at the moment.

It will take a decade or so when bitcoin will stand out and the world may start accepting it on government levels.

And yet Russia become the second biggest miner in the world behind US:

Obviously they have cheap electricity cost to do it, and maybe this is one way to get around those sanctions.

Russia has become the world’s second-largest cryptocurrency mining country this year, the Kommersant business daily reported Friday, citing Bitriver, Russia’s largest bitcoin mining provider.

While the United States remains by far the world's largest crypto miner, boasting 3-4 gigawatts of mining capacity, Russia’s generating capacity reached 1 gigawatt in January-March 2023.

In taking second place for the first time, Russia took a spot previously occupied by Kazakhstan, which introduced restrictions on crypto mining activities in 2022 and now ranks ninth, Kommersant cited Bitriver as saying.

https://www.themoscowtimes.com/2023/04/07/russia-becomes-worlds-second-largest-crypto-miner-a80749

[pawel7777]

I don't know how you claim that bitcoin has a good effect on its price due to war? If there is instability in the world, people will not invest in any currency which is volatile.

And so are traditional markets, but what bitcoin does though is to hedge their against this inflation due to war in Europe.

Precisely. With every major fiat currency being heavily inflated, expectations of global recession, precious metals' prices being manipulated (via "paper" gold/silver) - Bitcoin is starting to look much less scary than it used to be. Especially when it looks like it might have hit the bottom and the new bull run is on the horizon.

Yes, Russia has no option but to use bitcoin as a payment solution if all other doors are closed for them but they need the other party (government) to accept bitcoin payment too. The fact is our global economy is based on the US dollar and bitcoin can't stand in front of it. We still see US economic indicators or KPIs like CPI data, and employment data to determine the pump and dump of bitcoin price. That is how immature is the bitcoin market at the moment.

Russia doesn't have to use Bitcoin as they have an alternative banking system that can function outside of Swift. But bitcoin can still serve as an emergency back-up plan. I think there have been rumours about Russia using Bitcoin in the early stage of the war, when the sanctions were introduced, but it has never come to that.

The bottom line is - if other countries don't want to trade with Russia- they won't, even if they operate on compatible banking systems. If they do want to trade - they will, and they will use Bitcoin if there's no other option. Similarily to how few European countries decided to open bank accounts with Russian banks, to bypass the Swift ban and be able to trade.

[pixie85]

And yet Russia become the second biggest miner in the world behind US:

Obviously they have cheap electricity cost to do it, and maybe this is one way to get around those sanctions.

If the news are true they're in deep shit to change their stance. A year ago Russia was against mining and was trying to limit the amount of power miners can use. They were afraid of blackouts and also actively working on their own CBDC.

https://www.cnbc.com/2022/01/20/russian-central-bank-proposes-banning-cryptocurrencies-crypto-mining.html

If this has not passed and instead people are mining like crazy it means the oligarchs are looking for alternatives because people in Russia don't earn a lot of money. Not enough to buy a million USD worth of miners because that's what you need to start a serious business nowadays and there had to be a number of these serious operations set up last year for Russia to become a bitcoin mining giant. These are rich people with political connections that are mining there.

[Kryptowerk]

The ongoing war between Russia and Ukraine has shed more light on how digital currency is being used for military aid, since the invasion the Ukraine government have turned to social media and asked for the donation of Bitcoin, stablecoin and every other cryptocurrency.

From all indication the response was massive with over 100,000 people are contributing to help out Ukraine to improve there military effort in the war. One could never believe that helps could come from different people all over the world to assist Ukraine, to be frank with you, some individuals would have thought that NETO are the only ones helping Ukraine.
According to Ukrainian deputy digital minister Alex Bornyakov, the country has been using crypto to purchase fighting essentials like bulletproof vest, drones and other military gadgets/equipment.

https://bitcoinist.com/crypto-accepted-by-60-of-ukraine-weapons-suppliers/

I guess the effect is still not huge, but its definitely there. It makes sense, that the more urgent a situation is (any type of emergency or catastrophy), the more variety of ways to gain support will be accessed.
This is exactly one of the upsides of decentralized cryptocurrencies: It's super fast, easy to access and can even be anonymous.
So this kind of payment method usage will only increase over the next years and decades.

[zasad@]

Wars are not funded by bitcoins, but by people who want to profit from the war. Look at the statistics
https://thehill.com/homenews/3871459-by-the-numbers-u-s-military-aid-to-ukraine/
$77,500,000,000
Total U.S. spending earmarked for Ukraine from January 2022 to January 2023.

https://www.1lurer.am/en/2023/01/20/EU-countries-allocated-almost-50-billion-euros-of-aid-to-Ukraine-Borrell/867696
EU countries allocated almost 50 billion euros of aid to Ukraine: Borrell

__
Of course, all politicians know how to steal budgets, so real help is much less.

[Baofeng]

And yet Russia become the second biggest miner in the world behind US:

Obviously they have cheap electricity cost to do it, and maybe this is one way to get around those sanctions.

If the news are true they're in deep shit to change their stance. A year ago Russia was against mining and was trying to limit the amount of power miners can use. They were afraid of blackouts and also actively working on their own CBDC.

https://www.cnbc.com/2022/01/20/russian-central-bank-proposes-banning-cryptocurrencies-crypto-mining.html

If this has not passed and instead people are mining like crazy it means the oligarchs are looking for alternatives because people in Russia don't earn a lot of money. Not enough to buy a million USD worth of miners because that's what you need to start a serious business nowadays and there had to be a number of these serious operations set up last year for Russia to become a bitcoin mining giant. These are rich people with political connections that are mining there.

I guess that's what the war can bring to Russia or for any country for that matter. It's a complete U-turn, and remember years ago Russia has been contracting themselves as far as bitcoin or crypto adoption is, we will news of some Ministry going into public and says that they are crypto friendly, and then a week after someone will debunked that news and says otherwise.

So we might take again this news with a bag of salt.

But who knows, the source is inside Russia so might be true that they are just hiding on the reasons that they have abundance of electricity, on the other hand they want Bitcoin mining or Bitcoin per se, to go against the sanctions by the West. So still a win-win for them to go and become the second biggest mining country.

[zasad@]

But who knows, the source is inside Russia so might be true that they are just hiding on the reasons that they have abundance of electricity, on the other hand they want Bitcoin mining or Bitcoin per se, to go against the sanctions by the West. So still a win-win for them to go and become the second biggest mining country.

Many people in the financial system in Russia consider bitcoin to be a pyramid scheme. You can argue a lot on this topic, but a large number of bitcoins have already been mined. If Russia invests huge amounts of money in the construction of mining centers, then the US could at any moment ban bitcoin and make Russia's investment in mining useless. There are a lot of natural resources in Russia, and it is better for the government to develop more promising areas rather than bitcoin mining.

[Kryptowerk]

But who knows, the source is inside Russia so might be true that they are just hiding on the reasons that they have abundance of electricity, on the other hand they want Bitcoin mining or Bitcoin per se, to go against the sanctions by the West. So still a win-win for them to go and become the second biggest mining country.

Many people in the financial system in Russia consider bitcoin to be a pyramid scheme. You can argue a lot on this topic, but a large number of bitcoins have already been mined. If Russia invests huge amounts of money in the construction of mining centers, then the US could at any moment ban bitcoin and make Russia's investment in mining useless. There are a lot of natural resources in Russia, and it is better for the government to develop more promising areas rather than bitcoin mining.

Do you have any proof for your "US can easily go ahead and ban Bitcoin" claims?
First of all we all know it's technically not easy, if even possible at all. Yes, they can crack down on legal exchanges and spread more FUD and make things difficult for any busninesses operating with Bitcoin. But WITHIN the US only.
Given Bitcoin's current level of adoption, I doubt this is something the US wants to try. It would just create a huge exodus of crypto-companies towards other, more Bitcoin-friendly countries and lower the US' competitiveness in that field.

[zasad@]

But who knows, the source is inside Russia so might be true that they are just hiding on the reasons that they have abundance of electricity, on the other hand they want Bitcoin mining or Bitcoin per se, to go against the sanctions by the West. So still a win-win for them to go and become the second biggest mining country.

Many people in the financial system in Russia consider bitcoin to be a pyramid scheme. You can argue a lot on this topic, but a large number of bitcoins have already been mined. If Russia invests huge amounts of money in the construction of mining centers, then the US could at any moment ban bitcoin and make Russia's investment in mining useless. There are a lot of natural resources in Russia, and it is better for the government to develop more promising areas rather than bitcoin mining.

Do you have any proof for your "US can easily go ahead and ban Bitcoin" claims?
First of all we all know it's technically not easy, if even possible at all. Yes, they can crack down on legal exchanges and spread more FUD and make things difficult for any busninesses operating with Bitcoin. But WITHIN the US only.
Given Bitcoin's current level of adoption, I doubt this is something the US wants to try. It would just create a huge exodus of crypto-companies towards other, more Bitcoin-friendly countries and lower the US' competitiveness in that field.

And who has achieved the high level of Bitcoin adoption in the US? Bitcoin enthusiasts or influential bankers and businessmen?
It is impossible to destroy or ban Bitcoin, but the United States can ban trading on major world exchanges. And most large companies will abandon bitcoin. Such a scenario is possible. All major markets are the US and Europe, I would not rely on Asia.

[Baofeng]

But who knows, the source is inside Russia so might be true that they are just hiding on the reasons that they have abundance of electricity, on the other hand they want Bitcoin mining or Bitcoin per se, to go against the sanctions by the West. So still a win-win for them to go and become the second biggest mining country.

Many people in the financial system in Russia consider bitcoin to be a pyramid scheme. You can argue a lot on this topic, but a large number of bitcoins have already been mined. If Russia invests huge amounts of money in the construction of mining centers, then the US could at any moment ban bitcoin and make Russia's investment in mining useless. There are a lot of natural resources in Russia, and it is better for the government to develop more promising areas rather than bitcoin mining.

Yes, but if there's one thing that Bitcoin can do with Russia right now is to circumvent the US sanctions on them and they could used BTC to their advantage by being the mining capital or hub right now. China for once has ban Bitcoin trading, and it has no to little effect on the market.

Probably US will put a big dent once they decided to put the hammer ban, but I doubt that the government will do it. There are a lot of US that is going to be crypto friendly and even Bitcoin mining booms in Texas. The US government is more intelligent than just putting the ban on bitcoin and everything that relates to it. On the contrary, I'm thinking that they will have to embrace or adopt it the sooner to stay ahead of the game.

[virasog]

But who knows, the source is inside Russia so might be true that they are just hiding on the reasons that they have abundance of electricity, on the other hand they want Bitcoin mining or Bitcoin per se, to go against the sanctions by the West. So still a win-win for them to go and become the second biggest mining country.

Many people in the financial system in Russia consider bitcoin to be a pyramid scheme. You can argue a lot on this topic, but a large number of bitcoins have already been mined. If Russia invests huge amounts of money in the construction of mining centers, then the US could at any moment ban bitcoin and make Russia's investment in mining useless. There are a lot of natural resources in Russia, and it is better for the government to develop more promising areas rather than bitcoin mining.

Yes, but if there's one thing that Bitcoin can do with Russia right now is to circumvent the US sanctions on them and they could used BTC to their advantage by being the mining capital or hub right now. China for once has ban Bitcoin trading, and it has no to little effect on the market.

Probably US will put a big dent once they decided to put the hammer ban, but I doubt that the government will do it. There are a lot of US that is going to be crypto friendly and even Bitcoin mining booms in Texas. The US government is more intelligent than just putting the ban on bitcoin and everything that relates to it. On the contrary, I'm thinking that they will have to embrace or adopt it the sooner to stay ahead of the game.

I see the world is moving in a direction where it will be divided in two sections, one would be US supported countries that will continue to use the dollar as their main currency. The other block will be forming as an Anti-US country that may use Bitcoin as a main currency to trade/deal between them.

Check out some of the latest developments like Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales and you will see where we are heading in next few years.

The dollar will eventually lose its importance and it will eventually be replaced by Bitcoin. Also, countries are expected to launch their own CBDC, but i don't think that may serve as an alternative to Bitcoin.

[pawel7777]

I see the world is moving in a direction where it will be divided in two sections, one would be US supported countries that will continue to use the dollar as their main currency. The other block will be forming as an Anti-US country that may use Bitcoin as a main currency to trade/deal between them.

The replacement of USD as a reserve currency will likely happen eventually unless China gets defeated badly in the geopolitical games. But there's close to zero chance that it'll get replaced by Bitcoin.
The world's reserve currency will be the currency of the country that dominates economically (and militarily).

I wonder if US is actually capable and willing to do anything to prevent that from happening.

[zasad@]

But who knows, the source is inside Russia so might be true that they are just hiding on the reasons that they have abundance of electricity, on the other hand they want Bitcoin mining or Bitcoin per se, to go against the sanctions by the West. So still a win-win for them to go and become the second biggest mining country.

Many people in the financial system in Russia consider bitcoin to be a pyramid scheme. You can argue a lot on this topic, but a large number of bitcoins have already been mined. If Russia invests huge amounts of money in the construction of mining centers, then the US could at any moment ban bitcoin and make Russia's investment in mining useless. There are a lot of natural resources in Russia, and it is better for the government to develop more promising areas rather than bitcoin mining.

Yes, but if there's one thing that Bitcoin can do with Russia right now is to circumvent the US sanctions on them and they could used BTC to their advantage by being the mining capital or hub right now. China for once has ban Bitcoin trading, and it has no to little effect on the market.

Probably US will put a big dent once they decided to put the hammer ban, but I doubt that the government will do it. There are a lot of US that is going to be crypto friendly and even Bitcoin mining booms in Texas. The US government is more intelligent than just putting the ban on bitcoin and everything that relates to it. On the contrary, I'm thinking that they will have to embrace or adopt it the sooner to stay ahead of the game.

I see the world is moving in a direction where it will be divided in two sections, one would be US supported countries that will continue to use the dollar as their main currency. The other block will be forming as an Anti-US country that may use Bitcoin as a main currency to trade/deal between them.

Check out some of the latest developments like Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales and you will see where we are heading in next few years.

The dollar will eventually lose its importance and it will eventually be replaced by Bitcoin. Also, countries are expected to launch their own CBDC, but i don't think that may serve as an alternative to Bitcoin.

The United States consumes about 40% of world GDP, and produces 2 times less, but there are problems with the medology of calculations. How will the world be divided if the US and China are partners? The main consumption in the world is the USA and Europe. The United States has already lost the economic war to China, and is trying by all means to transfer a large number of industries from Europe.
There are a lot of questions about how the world will be divided. I named one scenario, this is a single government for all countries. Another scenario is long and bloody wars in all parts of the world except the USA

[Kemarit]

I see the world is moving in a direction where it will be divided in two sections, one would be US supported countries that will continue to use the dollar as their main currency. The other block will be forming as an Anti-US country that may use Bitcoin as a main currency to trade/deal between them.

The replacement of USD as a reserve currency will likely happen eventually unless China gets defeated badly in the geopolitical games. But there's close to zero chance that it'll get replaced by Bitcoin.
The world's reserve currency will be the currency of the country that dominates economically (and militarily).

I wonder if US is actually capable and willing to do anything to prevent that from happening.

I will be in the opinion that they will do everything in their power to maintain USD as the dominant reserved currency. Although there are a lot of movements right now, BRIC thinking of another alternative currency to be used, or as someone mentioned, Saudi might try the Yuan. US is still capable to do that, maybe offer trade baits for other countries, or improved their trade relations so that they can keep power of the USD.

As for bitcoin or any cryptos to be a reserved currency, it should be stable, which obviously is not a trait of BTC. And for Yuan to be a reserve currency, it should have depth and liquidity, and their financial still lacks that.

[Fiatless]

I will be in the opinion that they will do everything in their power to maintain USD as the dominant reserved currency. Although there are a lot of movements right now, BRIC thinking of another alternative currency to be used, or as someone mentioned, Saudi might try the Yuan. US is still capable to do that, maybe offer trade baits for other countries, or improved their trade relations so that they can keep power of the USD.

As for bitcoin or any cryptos to be a reserved currency, it should be stable, which obviously is not a trait of BTC. And for Yuan to be a reserve currency, it should have depth and liquidity, and their financial still lacks that.

There seems to be a little crack in BRICS. South Africa has informed Russian President Putin that he would be arrested if he steps his feet on South African soil. There was pressure from Russia and China on South Africa to withdraw from the International Criminal Court ICC and it was assumed that it have succumbed when South African President Ramaphosa criticized the ICC and threatened to quit the organization. But the recent decision to execute the warrant on Putin issued by the ICC is proof that the US and her allies still have a lot of influence on some of these BRICS nations.

I still believe that Bitcoin is the best option for any country to channel its reserve to because it is transnational and free from the politics of any country.

[Sexylizzy2813]

Cryptocurrency will not help win the war.

Definitely cryptocurrence will never help win the war but it has a way of promoting the war or even making sure that those who lost their homes can eventually get something to help themselves with, those who are in the hospital can get relief materials.
With so much donations cryptocurrence can help either negatively or positively.

[Bushdark]

The ongoing war between Russia and Ukraine has shed more light on how digital currency is being used for military aid, since the invasion the Ukraine government have turned to social media and asked for the donation of Bitcoin, stablecoin and every other cryptocurrency.

From all indication the response was massive with over 100,000 people are contributing to help out Ukraine to improve there military effort in the war. One could never believe that helps could come from different people all over the world to assist Ukraine, to be frank with you, some individuals would have thought that NETO are the only ones helping Ukraine.
According to Ukrainian deputy digital minister Alex Bornyakov, the country has been using crypto to purchase fighting essentials like bulletproof vest, drones and other military gadgets/equipment.

https://bitcoinist.com/crypto-accepted-by-60-of-ukraine-weapons-suppliers/

The NATO had always think that Russia is doing very well because they were able to use Crypto to finance there budget and do other expenses which I don't think is true. Even till tomorrow, Putin is still one of the biggest supplier of uranium and other essential materials to the US and other European countries like France, Germany and others. I don't think Bitcoin is ever having any effect on the war but it's very obvious that many people even cryptocurrency writers are only suggesting that the donations to Ukrainians had been helping to provide potential aids to the government.

[yhiaali3]

. I don't think Bitcoin is ever having any effect on the war but it's very obvious that many people even cryptocurrency writers are only suggesting that the donations to Ukrainians had been helping to provide potential aids to the government.

I do not think that Bitcoin will have a tangible impact on a war of this magnitude. Bitcoin may be useful in some logistical and medical military aid, but this does not constitute an effect on the course of the war.

The impact of the aid being provided by bitcoin cannot be compared to the massive military aid that the United States and NATO are providing to Ukraine, and yet the war is still going on.

Personally, I do not like that Bitcoin be used in war, it is better that it be used in providing medical and humanitarian aid only.

[pawel7777]

As for bitcoin or any cryptos to be a reserved currency, it should be stable, which obviously is not a trait of BTC. And for Yuan to be a reserve currency, it should have depth and liquidity, and their financial still lacks that.

In a situation where we have multiple superpowers competing for global dominance, having reserve currency backed by nothing (be it BTC or any of the fiat currencies) is risky. It would make more sense to have a currency backed by commodity, or better yet, by multiple commodities. Or we could just not have one, global reserve currency and be using few different ones instead.