How Russia-Ukraine tensions are influencing crypto market

Feb 16, 2022 | Uncategorized | 0 comments

The tensions between Russia and Ukraine is rising horrifyingly — things aren’t leading to a better place the way they are. The whole world is watching for an imminent conflict that could lead to thousands of unnecessary deaths.

The downtrend saw on Bitcoin and most altcoins is a direct result of this political conflict, there’s no doubt about it. As this article was being written, Russian troops are testing some strategies to invade their enemy.

Check out how this war could impact crypto:

Mining hash rate

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According to Cambridge Bitcoin Electricity Consumption Index, Russia is the third country in Bitcoin mining — it loses only to Kazakhstan and United States.

When the conflict effectively starts, miners could become afraid to maintain their activities inside the country and look for somewhere safer. There’s always the possibility of robberies and apprehensions regarding specialized crypto hardware.

Since the mining power in Russia is considerable, this could impact prices in the short term tensions.

Crypto and terrorism tensions

tensions

A handful of states are trying their best to regulate and control cryptocurrencies’ activities. One of the reasons behind it is to prevent investments inside tensions terrorist groups.

This, according to The Diplomat, could turn into a serious problem: terrorists can use Bitcoin and other digital assets as a ransom payment tool. In addition, these groups could receive funds from all around the world without anybody knowing it.

China’s position

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The Chinese government is trying to chat with both sides to prevent armed conflict. However, when the killing starts, president Xi Jinping will have to choose a side — and it’s not clear yet which one is the best according to their interests.

BBC said that China doesn’t want the conflict to occur but shares the same Moscow’s worries about Ukraine.

One of the biggest economies in the world could lead to some economical uncertainty, thus influencing cryptocurrencies during the process. Alas, there’s no definitive answer for this question since the war could storm anytime.

The bottom line

For now, cryptocurrencies aren’t being much affected. However, just like the Cold War, things are getting hotter, and the killing could suddenly emerge tensions.

Miners could try to find another place to conduct their activities; after all, nobody wants to conduct their businesses when there’s a strong risk of not being alive the other day.

Governments are specially worried about guerrilla factions being funded by anonymous donators through cryptocurrencies; it’s expected to see more activities regarding regulations soon.

If you want to close deals peacefully, you can always count on CoinShopp for that.

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