How is crypto helpful right now?
Cryptocurrency has had a great impact on the modern economy. Cryptocurrency is a currency that has been stored in digitalized forms and its transactions maintained in a lot of computers which are called ledgers and can be found while mining a digital blockchain. A lot of these currencies have large values, such as Bitcoin: $42359.20 with market cap: $729B and Etherium: $2,645 with market cap: $321B.
The hit in Ukraine’s economy
Recently the Russian-Ukraine conflict that has broken out has resulted in economic difficulties in both countries. But the worst hit was on Ukraine, as the country was bounded from all sides and a blockade on its marine trade routes was also initiated with Russian ships patrolling the black sea.
Although Ukraine has put up with the invasion of Russian troops for more than a week now, there is a real need of support that the rest of the world seems to have offered this affected nation.
Life-saving crypto donations
The hit in the economy was mitigated by the many donations in crypto which are amounting to $50 million. These donations have been proven to be helpful in many ways:
1. The Blockades and sanctions initiated by the Russian forces which played heavily on the economic morale were made ineffective.
2. The usage of NFT auctioning has resulted in additional income and fields of employment.
3. Even though Russia is better in the military, Ukrainians have the upper hand in the context of the economy right now
Overall, these donations have aided the Ukrainian army in the fight against the Russians.
The Russian economy
On the other hand, the value of the Russian currency is collapsing fast and the Russian people are threatened with hyperinflation, a situation in which the price of goods soar so high that the lower and middle classes would not be able to comfortably afford them. Soon Russia may face the same situation as Germany post World War 1 and pre-Nazi Influence.
How the Ukrainian government made use of the donations
The government has already spent $15 million on acquiring defense equipment such as bulletproof vests and other much-needed military supplies, such as food packages, night vision equipment and medical supplies.
What made this possible is that about 40% of suppliers are willing to accept crypto as a payment method, but officials have announced that it’s not a problem, as the crypto donations can be easily converted into euros or dollars in order to buy from the rest of the suppliers who don’t accept crypto payments.
The whole world watches in anticipation of what’s to arise next from this conflict. Protests all over the world took place this last weekend, as many disagree with what’s currently happening.
One thing is sure: this conflict could have a great impact on the world economy, so stay updated with weekly crypto news on our blog. For secure crypto transactions, Your Friendly Crypto Exchange has your back.
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