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 ]
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All the good little boys and girls cheering for the seizure of 'Oligarch assets' as if that's a thing. Funny how Russia's the only country in the world with Oligarchs. The US doesn't have any, of course. All those billionaires got rich through hard work.
People have such little imagination; they'll cheer on our descent into a worldwide, totalitarian surveillance nightmare because it'll target people they've been told to hate, first.
Then they came for me.
Lack of imagination and willingness to be conditioned.
Did you see that the Ukraine government is offering an NFT to people who donate directly to them... since it was announced donations have gone through the roof.
https://etherscan.io/address/0x165CD37b4C644C2921454429E7F9358d18A45e14
They were sitting at nearly 900 ETH a few hours ago... I think the snapshot for the NFT is in about 16ish hours. This is a pretty amazing war bonds use case for crypto that I never ever considered before.
Yeah, it seems that they are pretty switched on. It is going to be interesting once the fighting calms down, to look at all the transactions that are going back and forth and the volumes involved.
Hah, didn't know that!
Interesting..
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It's only applauded when it's happening to someone else/that you disagree with, otherwise it's unfair and uncalled for and heavy handed and whoever is doing it should be punished in ridiculously overboard ways that completely do not fit what happened.
This isn't necessarily a good thing long term or even mid-term x_x
That quote about people who trade freedom for security deserve neither freedom nor security?
A lot of the reason I want a nice slow gentle transition (which will obviously have teething pains and whatnot, the usual) is because this usually seem to result in spectacular collapses and while that's nice from a "burn it down and start again" point of view, panic-stricken chickens always seem to just default back to the system that literally caused all the problems to begin with because it's what they're familiar with and they are so absolute in the delusion that it will somehow be different and better with them in charge instead.
But that song about you can't always get what you want XD
No it is not at all - but it is a decdentralization of power. I look at it from the perspective of very long term. It has gone from Monarchy, to religion, to state, to corporation and perhaps eventually - people will have control too.
Yes. We tend to rebuild on the plans we know - and those plans are rubbish!!
Is there some psychological description for that?
"stupidity" comes to mind - but there probably is a technical term. I will keep an eye out for one!
Well you know it may suffice if you can dress it up in something a bit more sciencey sounding XD
I have to agree that the crypto regulation is overblown and the USD is definitely the money used to launder the most money. I just think that the crypto off-ramps need to be more developed because the central banks and the centralized exchanges will be a huge bottle neck.
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Yes for sure. It is a "work in progress" thing I reckon, where eventually there will be decentralized options to replace something like SWIFT, even if not overly convenient at the start.
Visa and mastercard , google pay cutting off their services in Russia will push more of them into alternative methods as well. Cash is king again and the Ruble is on the floor which will guide more Russians to crypto.
When we rely on centralized services, we get bent over by them too.
I am hoping that everyone is going to start looking seriously at where they hold value and start diversifying.
Dear @tarazkp , Your idea is excellent! I agree with your argument. However, in the world I live in, I cannot resist the command of the omnipotent and great nation.
All personal and corporate information is under government surveillance. All their transactions, property holdings and communications are being censored.
Individuals and businesses that disobey government laws and orders are subject to fines and conscription.
Anyone like you who recommends the use of cryptocurrency while denying the authority and credibility of the government's fiat currency will be punished for defamation and dissemination of false information.
In the world I live in, all individuals and businesses are being educated to sacrifice everything for the survival and profit of the nation.
If the state finds out that I have told a foreigner like you this, I will be punished.😞
You can - but resistance always comes at a price.
There is a price to this too. Obedience is only useful for so long.
Dear @tarazkp , East Asians have been serving as faithful servants of the state for 2000 years. From my point of view, they have no will and no ability to resist the state. Only they would be willing to become slaves to receive money from a merciful state.
They will be more satiating pigs than free poor philosophers like you.
It’s some crazy times for finances that’s for sure. This trend of asset seizure is alarming and one I think is the most important story of the 2000’s. Once it starts these government criminals won’t stop and will use the flimsiest grounds to justify it (honking..).
I’m really looking forward to the crypto devs coming up with more and better ways for privacy coins in the coming months and years. I think they have seen the seizure and the doxxing of the donors of give send go and should, I hope, work privacy into more base layers or L2’s.
People applaud it - I don't understand... Are they insane?
Privacy coins are going to get heavily attacked I think - even more so. But, that is the game now. Survival.
Sad for the conflict but good for the crypto and it all makes sense in what you say.
Yeah, I feel for the people involved and suffering on all sides.
It all depends on the situation at hand that may determine that say or movement to a particular scenario but what I believe is that most masses like to follow one direction that is being lead by one
Safety in numbers - until that cluster bomb hits.
The global sanctions on Russia have showed us that what we owe could not be ours in a moment in a centralized financial system. I hope people will understand the value of decentralization after this event.
I am doubtful most will, but if a few more do - then it is progress.