With the economic sanctions against Russia, inevitably there is an interest in moving assets into crypto, but it is unlikely to be the Russian government looking to avoid the pressure, it is more likely to be normal people, hoping to secure what little they have access to, rather than keep it in local currencies. This is happening in Ukraine too.
The reason is that it doesn't really help Russia the state to convert into crypto to avoid the sanctions, because it is the embargoes on the oil that are the issue, meaning that what they need is for willing trading partners to send them crypto, but that has its own issues - like trusting that if they send a 100M worth of Bitcoin, they will get a tanker or two full of oil from Russia delivered. Maybe one day.
However, this isn't going to stop the scaremongering from those in government that fear that crypto is going to replace them, from using it as an excuse to try and regulate it into their circle of control. This is just the latest reason, as they have been doing it for years already, as after all - Bitcoin is the currency of drug dealers. They fail to mention that the US dollar is the currency of choice for drug dealers. Terrorists too. If this changes to Bitcoin, it isn't because Bitcoin is built for drug dealers, it is because it has higher utility and acceptance than the US dollar - which is what the officials fear.
However, what is evident by what is going on in the economy now and how the governments have reacted is, it is clear that there is growing usecase for crypto. For example, the US is seizing the assets of Russian oligarchs, which many might applaud, but there is no line of division and as far as they have been concerned up until this point, their assets were welcomed into the US, no matter how the wealth was made. It isn't like in the last few days they have suddenly found out that not all of it might have been earned above board.
What this proves again though, is how people don't actually own what they think they own, and sure while they target the billionaires people clap, there is no lower limit they aren't able to access and under the right circumstances, they will. Essentially, everyone at the moment should be starting to diversify their potential currencies into something safer, with safe not meaning without volatility risk, but in terms of personal ownership and control.
Holding precious metals is great, until you have to run, because while more mobile than real estate, it isn't exactly easy to haul, let alone sneak across borders, if the need arises. Crypto being non-physical however, means that it needn't travel in order to be available, as long as there is a key to access it.
Decentralized personal wealth control is going to be the direction of economic activity in the future and because of it, it is going to meet resistance from governments, as they are used to taking the resources they want from citizens, not competing for it. But, they are going to be fighting an uphill battle, because the more draconian they become, the more people will see the need to move their wealth away from their reach and there will be plenty of corporations willing to help.
As we saw the other day with the move by Musk to provide Starlink internet connection support to Ukraine, corporations are no longer not completely at the mercy of regulation anymore, they own and control infrastructure too and they could "go rogue" - At a global level. It won't be tolerated for long, but even if they are regulated in one location, their value will be determined by usage and they can earn in multiple more - unlike selling oil.
However, when fear can be raised sufficiently, people will sign away their rights and overlook the violations without thought - anything to feel safe and to inflict pain on the enemy. It is a "cut off one's nose to spite the face" situation. Also, people like drama, but they don't want to be affected by it or uncomfortable, so most will go along to get along with the "getting along" doing whatever they are told to do. People are happy, as long as they aren't the ones being targeted.
It all raises many questions and potential paths for the future, but while people want access to power, this also means that their enemies will seek to have access to. This is the escalation and proliferation process and it happens for everything with strong usecase - whether it be a better nuclear weapons, or better currencies.
There is a lot of FUD now - but they are undermining their own walls.
Taraz
[ Gen1: Hive ]
