Recent news shows Bitcoin's dual role, supporting Russian oil trade and seeing investment shedding in the US.
Bitcoin in Russian Oil Trade
Russian oil companies use Bitcoin, Ethereum, and stablecoins like Tether to circumvent sanctions while selling oil to China and India. The process is straightforward: buyers pay in their local currencies, which are converted into cryptocurrency, then into Russian rubles. This method sustains the Russian oil industry amid Western sanctions and might set an example for other countries.
Losses in US Bitcoin Investment Funds
In the United States, Bitcoin ETFs are experiencing financial outflows, losing $870 million over the past week, despite Bitcoin's high price at around $85,000. Investors are concerned about global economic conditions, prompting a withdrawal of funds.
Connecting the Two Bitcoin Stories
These stories illustrate how Bitcoin can serve as both a tool for real-world trade and a risky financial asset. In Russia, it addresses practical challenges by facilitating international transactions. In the US, it remains a volatile investment tool that prompts investors to reassess its long-term value.
Bitcoin's developments underscore its dual role in international trade and investments. Its future continues to be shaped by global dynamics.
