Peter de Waard3 March 2022, 20:11
Bitcoin is a libertarian-anarchist idea. Satoshi Nakamoto – whoever that may be – launched the cryptocurrency in 2009 after the international financial system shook to its foundations as a result of the credit crisis. Bitcoin made it possible to make transactions outside the creaking, government and central bank controlled payment network.
The mysterious Nakamoto gained more followers as a modern-day messiah who turns water into wine, or feeds the entire Sahel with five loaves of bread and two fish. Although numerous economists and scientists find the fake money, the price has risen faster than any other stock. And new cryptocurrencies are springing up like mushrooms. Nobel Prize winner Joseph Stiglitz once said that cryptocurrencies are mainly used by criminals who can make transactions with them that cannot stand the light of day, such as money laundering.
That is possible. After all, Bitcoin is meant to provide anonymity to people who want nothing to do with the financial system. It is beyond the remit of financial watchdogs. And that can sometimes come in handy in addition to criminals, political bastards. It is not for nothing that it is mainly banana republics where bitcoin is actually used as a means of payment – and not only as a speculative object.
Since the Russian invasion of Ukraine, the price of bitcoin has risen from 35 thousand to 40 thousand euros. Other cryptocurrencies such as ethereum also increased in value. A large part of this increase in value is related to the enormous demand from Russia. There, out of fear of the sharp fall in the price of the ruble, private individuals would have converted assets into bitcoins. And that is not surprising because the ruble has lost 30 percent of its value against the euro. In addition, Russian companies, financial institutions and oligarchs would have bought large amounts of bitcoins. The reason is that Russian banks have been cut off from the international payment network Swift and can no longer access their balances abroad.
The Russian central bank can also no longer get foreign exchange to support the price of the ruble. The aim is, as the warlike President of the European Commission Ursula von der Leyen calls it, to ‘paralyse’ the financial movements of Russia. Now that military intervention is not in the cards, the Russian bear must be forced to surrender economically.
With bitcoins and other cryptocurrencies, the Russians could still make cross-border transactions out of sight of the authorities. Bitcoin platforms deny that this is happening. Russian institutions that convert funds into cryptocurrencies would be excluded from payments. Cryptocurrencies would not be a safe haven for lawbreakers, because with smart blockchain technology it is possible to find out who is behind payments. In addition, the crypto wallet can be blocked.
These reactions are understandable, as the platforms do not want to be accused of providing a shortcut into the country’s near-global financial blockade. But there is no certainty. The value of bitcoins, other cryptocurrencies and stablecoins – cryptocurrencies backed by cash or gold – has risen so fast that the overview of this market is completely lost.
Putin could survive the economic war with libertarian-anarchist means. This should contain content from e.g. Twitter, Facebook or Instagram
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