Russians pay up to $20,000 above market rate to buy Bitcoin
While the sanctions imposed on Russia are partly catalyzing the collapse of the Russian ruble, the data suggests that Russians are turning to for protection from the fallout.
Bitcoin has become much more expensive in Russia
Media known as DeFiprime.com noted that Bitcoin is trading up to $20,000 above the market rate on Russian exchanges.
The platform called it the “matreshka bounty” as a joke, putting a twist on the kimchi bounty that was a widespread phenomenon in 2016.
Following the exclusion of Russian banks from the SWIFT global payment network, the ruble has fallen to record lows against the dollar, where 1 ruble is currently worth $0.009.
Source: Xe Currency Converter
In response, the Russian central bank raised rates to 20% to counter hyperinflationary pressures.
Moreover, BTC/ruble as a trading pair has seen the highest trading volume in recent days since last May, and due to the fact that the “matreshka premium” exists, it is clear that many Russians consider Bitcoin as a safer option than the in its current state.
Bitcoin has proven to be a viable alternative way of raising money in the midst of a crisis like war.
on the reverse
- The value of Bitcoin has once again soared in value. As of March 2, 2022, the token is trading at $44,126.07, a price well above its 2022 low, recorded at $34,391.
Why You Should Care
As the sanctions imposed on Russia impact its finances, many people will likely turn to cryptocurrencies for protection, which in turn could lead to increased utility, mass adoption, and popularity. the value of cryptocurrencies as a whole.
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