The Ukrainian emergency continues to deteriorate, with US visionary organizations linking the start to Russia’s intervention in Ukraine last Wednesday.
The US government has now announced arranged air strikes on Kyiv, reports have shown an attack on a kindergarten in Ukraine, and that the truce in the Donbass region in which Russia is involved has all the advantages of an implosion due to Russia’s arrangement not to withdraw its powers. . At present, war seems almost certain. Since when.
Financial exchanges are now responding unequivocally to any report from the region, but how can Bitcoin and other forms of cryptocurrency respond to the conflict between Russia and Ukraine? Is the current bitcoin crash really caused by the Ukraine war?
Bitcoin crash: What is happening in Ukraine today? Immediately, perhaps Russia simply needed to prevent Ukraine from uniting NATO with specific provocations that at first glance seemed impossible, but within half a month, war.
The tide has changed Although news from the offices of US Insight that Russia will attack on Wednesday revealed numerous news as a strategy the US government is using to thwart the war, Russia continues to move nearly 100,000 troops to the border with Ukraine.
In addition, weapons and reservists were transferred on the Ukrainian side. Strategic discussions at first yielded nothing. At the moment, no one believes Russia’s guarantee of peace.
What will happen to the cost of bitcoin in the event of a war? American markets will be mostly exclusively affected by the Russian-Ukrainian conflict. The United States has fairly minor exchange relations with Russia. Ukraine is not important as a financial partner.
Despite this, the conflict will hit Europe hard, Germany is particularly vulnerable to Russian gas and oil in the event of war, and German organizations may need to reduce construction for a really long time due to the lack of gas or oil to offer. 10% crash in the normal European stock market.
Bitcoin is an advanced emergency While the cost of gold, a simple emergency cash, had the option to rise 3.1% over the month, Bitcoin lost 5% in appreciation Assuming that Russia really attacked Ukraine, it would also affect the cost of Bitcoin. The cost of computerized funds will likely not benefit from this and may fall in tandem with the market in general.
This current struggle will not affect Bitcoin in the long run. The impact on Bitcoin’s cost will be similar to what happened when COVID-19 started back in March 2020 in price drops.
With a medium-term recovery for this reason, few specialized traders and financial backers are explicitly hoarding cryptocurrencies expecting full price recovery.
Definition of “Digital Assets”
Executive Order Ensuring the Responsible Development of Digital Assets On March 9, 2022, President Joe Biden issued his Executive Order Ensuring the Responsible Development of Digital Assets (the Order) sets policy for the development of digital blockchain technology for financial services.
The order states: “The United States has an interest in responsible financial innovation, expanding access to safe and affordable financial services and reducing the cost of domestic and cross-border money transfers and payments, including through the continuous modernization of public payment systems.” The order includes useful definitions that apply Practitioners of trust and real estate.
As stipulated in the order, “digital assets” is the umbrella term that refers to all crypto-based assets – regardless of the technology used – that are issued in digital form through the use of blockchain technology. 1 For example, digital assets include cryptocurrencies, stablecoins, and crypto-currencies. What are those? The command defines each of them.
The term “cryptocurrency” refers to a type of digital asset, which may be a medium of exchange, where ownership is recorded using a blockchain or similar distributed ledger technology that is based on cryptography.
2. The term “stablecoins” refers to a class of cryptocurrencies with mechanisms intended to maintain a stable value.
3. The stable value is achieved, for example, by associating the value of a coin with a particular currency/asset or by mathematically controlling supply in response to changes in demand.
Stable currencies are sometimes referred to as being pegged to a traditional fiat currency (ie the US dollar) or other stable assets.
The term “central bank digital currency” (CBDC) refers to the official digital money of a country which is the direct responsibility of the central bank of that country.
4. The order directs several US departments and agencies to work “with the highest degree of urgency” to conduct collaborative research and development on design and publication options for the US CBD.
5. The first round of reporting is scheduled to be presented to President Biden on September 5, 2022, with research and development efforts continuing for several months after that.
6. By all accounts, it is a bold indication that the United States understands that blockchain technology, cryptocurrencies, and all digital assets are here to stay in both the domestic and global financial systems.