Bitcoin demonstrates its unique functionality across different parts of the world. In Russia, cryptocurrency is used to bypass sanctions in oil trade, while in the USA, investors are pulling funds from ETFs despite high prices.
Russia's Use of Bitcoin for Oil Trade
Russian oil companies have found a way to sell oil to China and India using cryptocurrencies like Bitcoin, Ethereum, and the Tether stablecoin. Buyers pay for oil in yuan or rupees, which is then converted into cryptocurrency and ultimately becomes rubles. This helps sustain Russia's large oil business even amid Western sanctions. In 2024, Russia facilitated the use of cryptocurrencies for international trade by creating appropriate legislation.
Withdrawal from U.S. Bitcoin ETFs
In the United States, there has been a recent decline in investments in Bitcoin ETFs, with $870 million withdrawn over the past week, including $143 million on March 13 alone. Despite Bitcoin's price remaining high at around $85,000, investors are concerned about global economic issues and events, prompting them to withdraw funds from the markets.
How Bitcoin Connects These Different Stories
While the situations in Russia and the USA may seem distinct, Bitcoin serves as the connecting thread in both. In Russia, it solves practical problems of international money transfers, while in the USA, it is viewed as a risky investment. These stories highlight two sides of Bitcoin: a practical tool for trade and a volatile investment vehicle.
Developments in Russia and the USA underscore Bitcoin's dual nature in the global economy: it is used as a tool for solving international trade problems and as a complex investment vehicle. Such increasing use cases make Bitcoin more significant at the intersection of geopolitics and finance.
