In a week, the ruble went from having a value registered in USD 0.012 to USD 0.0091, 24% less. The capitalization of bitcoin now reached a high of 40%, which means that it is more significant than rubles.
Among the side effects of the crisis surrounding Russia, the ruble has crumbled down at least 24% against the US dollar in just seven days due to a series of financial punishments applied by the US and other European regions.
Considering that a currency like bitcoin has faced many changes in the last week, the final amount of rubles now has a weaker dollar value than the market capitalization of bitcoin.
According to information received from the Central Bank of Russia, the whole amount of currencies in rubles, or the M2 money supply, was around 65.31 trillion rubles at the beginning of this year, when one dollar was parallel to 83 rubles.
On February 1, at least 110 rubles get required to equal a dollar due to the decay of the Russian national asset. The currency of 65.31 billion rubles would equal USD 593,727 million today. An amount that lies 40% below the market capitalization of bitcoin, which currently circles USD 835,260 million.
A week ago, before the war began, the capitalization of bitcoin was around USD 727,000 million, while the money supply M2 of rubles showed parallelisms with USD 783,000 million.
The whole currency in rubles surpassed the capitalization of bitcoin by 8%. A few days later, the panorama showed different and mixed perspectives since the monetary capital of a powerful nation like Russia couldn’t get counted.
The ruble’s decay against a currency like a dollar was 24%, and it reached that point in just one week, while the price of bitcoin increased by 25% at the same time. The mixture of the two elements led to the market value of bitcoin surpassing the total currency of Russian currencies.
The bitcoin price in rubles experienced significant changes on Tuesday and managed to reach a new all-time high of RUB 4,888,185. Bitcoin gained at least 50% in rubles, compared to the relatively stable value registered on February 24.
The ruble’s decline in international markets is considerable, especially when it gets compared with new financial alternatives such as bitcoin. Specialists also highlighted that the Russia-Ukraine war appears to be one of the powerful detonators for changing the crypto industry.
The Russia-Ukraine War is one of the significant game-changers that Crypto Industry experienced this year. From receiving digital assets as donations and for international trade medium besides SWIFT, growth begins to manifest in DAO to manage the War crisis and mitigate all the problems that war causes.
By: Jenson Nuñes
