Bitcoin shows two sides of its nature: practical use in Russian oil trade and risks and fluctuations on the US financial markets.
How Russia Uses Bitcoin to Sell Oil
Russian oil companies have found a way to keep trading oil despite Western sanctions by using cryptocurrencies like Bitcoin, Ethereum, and Tether. They sell oil to buyers in China and India, who pay in local currencies such as yuan or rupees. This money is then converted into cryptocurrency and finally into Russian rubles, allowing them to circumvent sanctions.
U.S. Bitcoin ETFs Lose Money Despite High Prices
In the USA, Bitcoin ETFs are experiencing significant losses, with $870 million withdrawn over the last week. Despite these outflows, Bitcoin's price remains high at around $85,000. Investors express concern over broader economic issues, leading to fund withdrawals.
How Bitcoin Connects These Different Stories
Bitcoin links these stories by acting as a practical tool for international trade in Russia and a volatile investment asset in the USA. In Russia, Bitcoin facilitates rapid cross-border money movements and offers solutions where traditional methods fail. In the USA, it serves as a risky investment influenced by global economic events.
These events illustrate Bitcoin's dual role: a practical solution for international trade and a complex investment asset. Such developments underscore Bitcoin's significance at the intersection of geopolitics and finance.
