Bitcoin has emerged as a crucial element in international trade and investment. Russia utilizes it for oil trade, while U.S. Bitcoin ETFs experience capital outflow.
How Russia Uses Bitcoin for Oil Trade Despite Sanctions
Russian oil companies found a way to continue trading oil with countries like China and India despite sanctions. By using cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), they ensure the conversion of local currencies like Yuan and Rupees into Rubles. This helps Russia maintain its $192 billion oil business, shielded from international sanctions.
U.S. Bitcoin ETFs Lose Money Despite High Prices
In the U.S., Bitcoin ETFs lost $870 million over the past week, including $143 million on March 13, amidst Bitcoin's high price of around $85,000. Investors may be concerned about economic instability and global events, leading to withdrawals from these funds.
How Bitcoin Connects These Different Stories
At first glance, the Russian and American situations seem unrelated, but Bitcoin serves as the connecting link. In Russia, it solves practical international trade issues, while in the U.S., it is seen as a risky investment subject to volatile market swings. These cases illustrate Bitcoin's dual role on the global economic stage.
Bitcoin's evolution is reflected in its dual roles as a tool for international trade and as an object of investment speculation. Russia's strategy of using Bitcoin for oil trade might serve as a model for other countries aiming to maintain international commerce, whereas market reactions in the U.S. indicate a complex view of the cryptocurrency's long-term prospects. Bitcoin's influence on international financial flows is set to increase.
