Bitcoin stands up to Putin
How cryptocurrency is defending Ukraine
Cryptocurrency has taken an unprecedented role in the defence of Ukraine against Russian invaders.
While the war against an international superpower had initially seemed helpless for the Ukrainian military, their determination and worldwide support have given them a fighting chance.
Countries and organizations around the world have cut ties with Russia, with bans issued from social media platforms to sports competitions. Many Russians are locked in a heated debate regarding the government's decisions.
Other countries have provided Ukraine with weaponry and other forms of military aid.
However, one of the looming problems the Ukrainian government is facing is a lack of funding.
The Ukrainian hryvnia is seeing a large drop in value as the economy shrinks, further establishing its place as one of the poorest countries in Europe by GDP per capita.
As a result, Ukraine has resorted to cryptocurrency contributions to fund its military, to much success.
Ukrainian officials posted official cryptocurrency wallets online to provide a direct address for donations and contributions to the war effort. Millions of dollars were generated this way within the first several days of the conflict.
In total, over $100 million worth of crypto was raised since the beginning of the war, with the money being mainly spent on military equipment and daily rations.
The smart decision to use the ongoing cryptocurrency trend to support the Ukrainian military attracted younger individuals to support the cause. Crypto also prevents funds from being affected by economical factors such as inflation and depreciation, which serve as major drawbacks to the dollar.
According to Michael Chobanian, a crypto entrepreneur and the founder of the Ukrainian crypto exchange Kuna, the vast majority of donations have come from Bitcoin, Ethereum, and Tether.
However, there were reports of scams and fake versions of crypto donation funds for Ukraine. Unauthentic cryptocurrencies were marketed on the pretext of supporting the Ukrainian government.
Cryptocurrency has also had a bad history both in Ukraine and around the world, with people using it for illegal activities such as tax evasion and criminal transactions.
Regardless of its flaws, most people are confident that crypto is an important asset to the Ukrainian government, and its use should continue to be promoted and encouraged. Scams and immoral activities should simply be a side effect we have to bear.
With effective legislation and regulations, the drawbacks of crypto can be largely eliminated. Numerous governments and organizations are already exploring this new asset and coming up with ideas for regulating it.
This is not a small thing
Cryptocurrency allows quick transfers of funds, freeing individuals from governments and banks and allowing them full control over their money.
Accepting crypto donations allows the individual to become easily involved in raising money for the Ukrainian conflict. It frees us from having to pay corporate charities any fees.
Crypto has become a universal currency. While the dollar is dying to inflation and currency depreciation, cryptocurrency is growing more powerful than ever.
While several figures in the investing world such as Charlie Munger have deemed cryptocurrencies immoral, others have dubbed them as the people’s money and the world’s money.
Truly, it has lived up to our expectations by providing a better way to transfer funds, new investment opportunities, and major sources of funding in times of crisis.
Changes allow more flexibility and improvements. Rather than stick to tradition and set limitations for ourselves, perhaps we should embrace this revolutionary idea that leads to new directions for the future economy.
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