How Bitcoin helps in critical life situations: the example of a resident of Ukraine
Bitcoin has long been seen as a system that can withstand global crises. For example, we previously published an article about BTC’s ability to exchange even in the absence of the internet. Recently, however, the cryptocurrency got another chance to prove its potential in practice: the geopolitical tensions between Russia and Ukraine, which led to millions of Ukrainian refugees in Europe, became a condition for this. We tell you more about the situation.
We note that cryptocurrencies are quite often used to help those in need - and especially in the form of donations. For example, Vitalik Buterin sent the equivalent of more than a billion dollars in SHIB tokens to fight a coronavirus in India in the fall of 2021. Most curiously, he received these coins from the project developers at their behest, who believed that Vitalik would not get rid of them and would thus prove to be a "project guarantor".
The main benefits of cryptocurrencies
The crypto-enthusiast under the pseudonym Fadey shared his story of how he managed to flee to Poland, keeping a significant portion of his savings in crypto. The refugee voiced the details of what happened in an interview with CNBC. Here’s a line in which the digital asset user shares details of the situation.
I couldn’t withdraw cash at all because the queues to ATMs were very long and I couldn’t wait that long. I could just write my sido on a piece of paper and take it with me.
As a reminder, a Sid-phrase or mnemonic phrase is a unique combination of a certain number of words, of which there are 12, 18 or 24. The combination gives access to a cryptocurrency address and allows you to dispose of it. As long as the user has the sid-phrase and it is not known to anyone, they can consider themselves the full owner of the digital assets.
Note that it is also possible to import sido phrases. For example, Ledger hardware wallet users can use the mnemonic phrase in third-party software. However, this should be done as a last resort, because online wallets are less reliable. Be that as it may, having the phrase will indeed allow you to access your own coins anywhere in the world if you have the internet.
Fadey crossed the border with about $2,000 worth of BTC, and the coins were stored on his cryptocurrency wallet as a USB drive. This money became an important financial cushion for the refugee, as it represents 40 percent of his savings. In addition, he later exchanged his bitcoin savings of the equivalent of $600 for Polish zloty to pay for initial expenses in the country for food and housing, Decrypt reported.
Evacuating residents of Ukraine
In the interview, the blockchain enthusiast added that he was unable to come to Poland with regular money – which is why Bitcoin played an important role in the refugee’s financial support. In addition to Bitcoin, Fadey also owns an undisclosed amount of the cryptocurrency Monero on the Binance exchange. The crypto-enthusiast’s story is another sign of the rapid adoption of crypto around the world, and in the most unexpected situations.
Recall that on February 26, 2022, the Ukrainian government announced that it was accepting donations in Bitcoin, Etherium and other coins for humanitarian needs. More than 45 million dollars in crypto have been received at the government’s confirmed addresses.
Evacuation of Ukrainian residents in Irpin
Read also: US government wants to crack down on Bitcoin support in El Salvador. Why?
The crypto industry itself could also get a huge boost from the geopolitical crisis, a statement made by Larry Fink, CEO of the world’s largest asset management company BlackRock. In an address to shareholders, Fink noted that the ongoing military conflict in Eastern Europe will force countries to rethink their currency dependence, which could eventually lead to a global digital payment network. The war has ended globalisation, he said, according to Cointelegraph.
A global digital payment system, thoughtfully designed, could increase the efficiency of settling international transactions while reducing the risk of money laundering and corruption.
Fink’s observation about the growing adoption of digital currencies is entirely valid, as trade sanctions against Russia have already led many oil and gas importing countries to seek alternative payment networks that bypass SWIFT. For example, India is developing its own direct payment gateway for energy purchases.
BlackRock head Larry Fink
Could Bitcoin become the basis for international payments? There are prerequisites: Pavel Zavalny, Chairman of the State Duma Committee on Energy, earlier said that countries may start using BTC to pay for Russian gas. However, this is just a supposition so far – such a scenario is still a long way off.
We believe that this situation was a clear demonstration of the advantages of decentralized assets. Firstly, they are easy to keep with you anywhere on the planet and as you travel around the world. Secondly, cashing out popular crypto is also easy. And since Bitcoin and other coins are able to increase in value over a long period of time, association with this asset category is also justified.
What do you think about it? Share your opinion in our Millionaire Crypto Chat. We’ll talk about other important blockchain-related topics there as well.
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