Cryptocurrency and dollar: making a choice when ruble falls

Credit: Vladimir Astapkovich | RIAN

Whether Bitcoin is a good investment is arguable; however, for many market players it remains a protective asset amidst the economic turbulence – despite the fact that in the current conditions, the cryptocurrency rates, including Bitcoin, are also unstable. 

This sums up an expert opinion voiced during the meeting of the Russian Association for Electronic Communication’s discussion club, “Blockchain in Russia: is there a life after hype?”

“The examples of Turkey, Argentina and Venezuela show that when the local currency collapses, people are not only buying dollars but also opting for cryptocurrencies. It is an established and understandable trend,” believes Gleb Kostarev, Country Manager of the Binance Cryptocurrency Exchange for Russia and CIS.

For people and investors cryptocurrency remains a protective asset, he clarified.

Maria Lapuk, co-founder of Vinci Agency, had a similar view.

“I think that if the current tendencies in the global information politics strengthen, if this dynamic persists, the public will lean more towards cryptocurrencies as an opportunity to diversify their portfolios,” she noted.  

Specifically, the market will heat up due to the global panic. If the panic actually happens, Maria Lapuk added, we may see good stats in the B2C market again.  

The collapse of the global financial markets did not leave Bitcoin behind. The most popular private cryptocurrency lost almost 24% on March 12, dropping from $7,390 to $5,600 per token (later bouncing back a little bit). The fall was so drastic that it caused speculation about a crypto bubble burst prompting, for example, Euro Pacific Capital broker company chief Peter Schiff to say that “the air is coming out of the bubble.”  

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