Bitcoin is now functioning in two distinct ways globally. In Russia, it's used to sell oil despite sanctions, while in the U.S., investors are withdrawing funds from Bitcoin ETFs despite high prices.
How Russia Uses Bitcoin to Sell Oil
Russian oil companies have devised a way to keep selling oil to countries like China and India by using cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT). The process involves selling oil, receiving local currency, converting it into cryptocurrency, and finally exchanging it for rubles. This method allows Russia's $192 billion oil industry to continue operating despite Western trade efforts to block it.
U.S. Bitcoin ETFs Lose Money Despite High Prices
Meanwhile, in the United States, the situation is different. Bitcoin ETFs lost $870 million over the past week despite Bitcoin's high price of around $85,000. Financial experts describe this as 'renewed selling pressure,' as investors remain wary due to broader economic concerns and global events.
How Bitcoin Connects These Different Stories
At first glance, these situations seem unrelated, but they are connected through Bitcoin's use. In Russia, Bitcoin offers a practical solution, crossing borders independently of the banking system. In the U.S., Bitcoin acts as a high-risk investment, and high prices do not ensure investment security.
These two aspects of Bitcoin demonstrate its role as a tool for global trade and a complex investment vehicle. The evolution of these roles underscores Bitcoin's unique position in the global economy.
