May 17, 2022

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The Cold War of Bitcoins! Russia and the United States are behind the decline

I Bitcoin We have recorded some celebrations in the New Year and a series of downward peaks, last between January 19-20, with unit prices Under $ 40,000.

Many factors are contributing to this decline in cryptocurrencies in the market, with attitudes revealing two key factors Central Banks of the United States and Russia, Appears in the center of one of the bitcoins New Cold War.

A first downward spike had already occurred a few weeks ago Federal Reserve Board (Central Bank), The US Federal Reserve, revealed the minutes of the December meeting, in which it confirmed plans to raise Interest rates on securities.

But a new impetus Bitcoin When the central bank arrives on Thursday, January 20th Russia Announces a’s next and upcoming project Prohibition on cryptocurrency and mining Well, we plan the process of extracting digital currency.

However, analyzing the market data and the current situation, analysts differ, with crypto opponents seeing the end of digital currencies and the speculation bubble, while supporters of cryptocurrencies believe that this situation determines the negative impact. Short-term bitcoin price, But it can lead to a long-term motivation.

This is because of the sanctions imposed by Russia, China, Kosovo and Kazakhstan Miners’ plane to the United States, Where is Extraction process (mining) It is often powered by energy extracted from renewable sources, so it is stable and has low environmental impact.

Despite this situation Rough trend Contributes immediately The Green Breakthrough of Bitcoin, What makes cryptocurrencies so attractive to many investors is that they are now intimidated by their environmental impact, thus ensuring a long-term improvement forecast. In short, according to most analysts, there is still hope to see 2022 and Bitcoin As never before $ 100,000 per unit.

Bitcoin has fallen to an all-time low due to the central bank and the Russian central bank

The record for Friday, January 20, is the highest in the last six months BTC Under the critical point of being $ 40,000 per unit.

See Bitcoin So it would not be better to post a 10% loss to rival cryptocurrencies, Ethereum lost 13% and other major Altcoins involved in the fall: Cardano, Tokoin, Shiba Inu, Solana, Polkadot.

Overall, the cryptocurrency market is estimated to have lost $ 200 billion $ 1.8 trillion In 24 hours in total, i.e. 11%.

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At this stage of the market there seems to be a kind of fear towards the world Encryption value, With Russia’s latest blow, about 10% of global operations are concentrated in the country Tunnel.

The Russian central bank has said that bitcoin and cryptocurrencies generally pose a threat to the country’s monetary stability, following a blow by bitcoin as the central bank plans to raise interest rates this year.

Although the ban appears to have been extended to transactions and mining, the new law was already expected, but that did not mean it was illegal. Holding cryptocurrencies.

The embargo threatened by Russia follows a similar decision taken by other countries, although we must distinguish between Putin and Erdogan as their position differs significantly from that of Kosovo and Kazakhstan.

Some to push Russia and Turkey move towards bitcoin ban This is not only the enormous amount of fossil and polluting energy consumed by the mines of transactions and cryptocurrencies, but above all the concern that it will undermine the financial stability of fiat currencies, which is the legal currency.

Why did Russia decide to ban bitcoin mining and transactions?

On Thursday, December 19, the Russian Central Bank announced its intentions to ban cryptocurrency mining and transactions, which is considered a threat. Monetary sovereignty.

However, in order to support these fears, there seems to be concern about the illegal activities that may be lurking behind bitcoins. Terrorist activities.

The central bank’s proposal includes a law prohibiting transactions in cryptocurrencies, as well as the ability to carry out processes. Tunnel In the territory.

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Russia’s goal is to reflect the actions of the Chinese government, which has imposed a total ban on transactions and mining. Bitcoin And other digital currencies.

Elizaveta Danilova, Head of the Financial Stability Department of the Central Bank of Russia, confirmed that, unlike other countries, there are no restrictions on the holding of cryptocurrencies only.

Of status Bitcoin in Russia Explained in detail in the edited YouTube video Michael Pino:

What will be the impact on the price of Bitcoin in the long run?

Russia is the third largest country in the world after the United States and Kazakhstan in terms of bitcoin mining. Only recently The Kazakhstan Prohibited Cryptocurrency mining Due to the energy crisis in the country, the concentration is effectively increasing Miners in the United States.

The reason for this is the imposed ban China and Kazakhstan The miners’ flight to the United States led to the conversion of cryptocurrencies toward sustainability, according to some analysts, because in the United States they are often extracted from food based on renewable energy sources.

Even the Russian central bank, announcing the next cryptocurrency ban, focused on the fear that it would create mining energy problems in Russia.

However, Russia, China, Kosovo and Kazakhstan differ significantly from the United States because of the energy required to sustain the nation, including processes in these states. Mining, Still completely dependent on the mine Fossil fuels Renewable and much more Pollutants.

In contrast, the United States is clearly present at the Green Breakthrough with one-third of the energy produced in the country. 100% Renewable Sources So consistent.

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The miners want United States Not only for reasons related to the extraction of costs and energy required for mining, but also because US law is less direct against the crypto world. Although the central bank is also trying to protect the dollar, the measures against the crypto world are indirect, i.e. the US, they have accumulated. Bitcoin grass In Sailor’s skill, they did not even think remotely about a complete ban on the mining industry.

The long-term benefits of the bitcoin price of the miners flight to the United States

In short, if banned in such countries Russia e China Creates a rough trend in the short-term markets, but these choices could indicate a positive indication in the long-term forecasts of the bitcoin price, analysts say. Crypto Lawyers.

First, the miners’ plane toward United States Introduces Bitcoin for its complete sustainable transformation, thereby attracting a large number of institutional or private investors to the market, now fearing the environmental impact of Bitcoin. A situation that marks the long-term growth of the currency and pushes many more to confirm the forecast I see BTC $ 100,000 per unit by the end of this year.

Editorial collaborator, born 1984.
I have a degree in Classical Biology and a PhD in Ancient HistoryUniversity of Naples Federico II, With a study of the fragmentary work of Asclepiade di Tragilo. I wrote Scientific publications Co-author of the Classical World and two international academic volumes. Since 2015, I have moved to the UK, where I have worked as a freelance copywriter and casino dealer.
Il mio motto? “Naples is the flower of paradise. The last adventure of my life”.