Russia, Russia again, and lastly Russia:
With Russia’s military operation going on in Ukraine, large centralized exchanges, Coinbase and Binance being two of them, have resisted calls to ban Russian users from using their platforms. Russian users have done this as a way of working around the Western sanctions against Russia.
CEO of Coinbase, Brian Armstrong said, “We believe everyone deserves access to basic financial services unless the law says otherwise.”
The purpose of blockchain was to give people power over their finances. A blanket crypto ban would almost go against the very ideals of this. Nonetheless, although centralized exchanges can seize crypto and ban users from using their platforms, it is important to understand that you can’t ban crypto entirely. This is because it is decentralized, meaning so long as there is a computer somewhere running the software, the protocol will remain unaffected.
To counteract any seizures of crypto, all one must do is move your crypto from a centralized exchange into a crypto wallet.
Despite the issues going on, it is important to note that the people most affected are the innocent ones. Blockchain empowers people and makes their lives work.
“Unstoppable Force” meets an Immovable Object:
Now it seems the "Unstoppable Force" has met a new resistance, Bitcoin. The West has tried to dial up a notch on sanctions against Russia, and they are now turning their attention towards Bitcoin. However, how does one go about banning Bitcoin or even enforcing such a ban? You can't unless you own the entire system. In this case, the system is decentralized. This means there is no issuing central bank or authority pulling the strings.
The outdated SWIFT system was used to exclude Russia from the economy, but it appears blockchain technology will change that. In order to avoid these sanctions, governments are actively looking for ways to get around them.
Since the sanctions have been imposed and the Russian Ruble has depreciated, a lot of people in Russia have been buying crypto. Perhaps this is one of the reasons why they want to ban Russia from centralized exchanges.
In any case, the crypto market is far too small compared to the size of the Russian economy. Even if Russians are banned from purchasing crypto on these exchanges, it is more likely Russia and Russia’s elite has already moved their money into different shell corporations or bought bitcoin. It's almost as if Russia had some kind of prophetic powers and knew that the West would sanction them in advance so they were prepared. This whole time the West is playing checkers while Russia and its allies are playing chess.
Even so, it will be interesting to observe how much Russia has invested in crypto, and the results will be evident over time.
Going, Going, Gone!
Yes, I know that was a cheesy title but it was well suited for this next bit of news. With the soaring prices and cost per barrel, gas prices seem like the new Bitcoin. It has already exceeded the $100 level and is heading for record highs.
But MinuteCrypto, I thought this was a crypto site where we discussed only crypto. I know, I know, but the thing is, because of the intricate interdependence of economies, things like this will inevitably affect the crypto market.
We have already seen how the conflict between Russia and Ukraine has caused a large number of individuals to turn to crypto.
But it goes beyond that. It seems as if the West sanctioned itself, especially Europe since it is heavily dependent on Russian oil. In addition, the sanctions could change the financial system. This could result in a more positive approach to blockchain technology.
As long as there is less oil available on the market, the price will rise as a result of supply-demand market forces. With the sanctions we continue to impose on Russia, we continue to push Russia towards an alliance with China and away from possible cooperation.
Recently, Russia and China agreed on a new oil and gas deal worth over $117 billion dollars. Let that sink in. Huge L for the West.
As for the soaring gas prices, California is well on its way to averaging $5 per gallon at the pump. Do I hear, working from home?
Not your keys, not your bitcoin:
Lastly, Virginia is on its way to passing legislation allowing its banks to act as custodians of cryptocurrency. This will allow banks to hold the keys to one’s cryptocurrency purse. It's similar to how safety boxes work. Only one problem, not your keys not your coin. This expression describes the need to possess your own crypto keys. In this way, you can decide how the asset will be spent. Otherwise, you are entrusting a third party with your crypto.
There is one lesson we have learned this year, and it is that your money could be seized without warning if you leave it in a bank or a centralized exchange *cough cough, Canada, cough cough, Russia*. If you do not believe that is possible, our Canadian brothers and sisters up North would like a word. It is important to understand, regardless of where you stand on the political spectrum, that the government, or any entity, should not be in the business of seizing one's property due to political differences.
You can find information about storing your crypto safely in online wallets here.
Grand Finale:
And with that last piece of news, it wraps up our very first newsletter. Keep a lookout for one next week on the same day and time. Until next time!
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