Famous venture investor Chamath Palihapitiya, the pioneer, and CEO of the investment company Social Capital, has challenged the premise that the invasion of Russia on Ukraine would benefit digital currencies to the detriment of the United States Dollar.
“USD And Bitcoin Currently Winning At The Moment”
Palihapitiya, an ardent proponent of cryptocurrencies, believes that the invasion of Ukraine by Russia and resultant depreciation of the United States Dollar would not result in the “crypto jackpot we’ve all been waiting for.” Rather, the wealthy investor stated that BTC and USD will benefit from the process as they are both “winning at the moment.”
Globally, most analysts believe that the widespread digital currency would threaten the value of the USD as one of the most used currencies. The current administration under President Biden carried out a risk analysis to evaluate how crypto would affect their economy regarding this assumption.
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BTC Sets The Pace Ahead Of Other Cryptos
Palihapitiya asserted that BTC was establishing itself as a “global safe refuge” asset in a Twitter thread. Furthermore, he contended that BTC has managed to distinguish itself from other digital currencies in the market and US-denominated investments such as bonds and stocks.
He also mentioned that assets denominated in the United States dollar were witnessing a similar phenomenon compared to assets valued in another currency. As Palihapitiya pointed out, when Bitcoin drops, other virtual currencies suffer bigger losses, with a similar impact occurring in non-US equities when US-denominated stocks collapse.
Bitcoin Dominance Increases
From the middle of January, Bitcoin dominance has increased from over 39% to about 43%, as measured by the proportion of Bitcoin value throughout the cryptocurrency market capitalization.
Earlier this week, Michael Saylor, the Chief Executive and Founder of MicroStrategy, tweeted that BTC was the remedy to various pressing global challenges, including “inflation, corruption, competition, regulation, and war.”
The Russia-Ukraine crisis increased the usage of cryptocurrencies as huge donations were made in cryptocurrency, running into millions of dollars. Cryptocurrency has become a popular topic all over the internet as various institutions are making plans to educate people on the risks and dangers associated with cryptos. This widespread popularity is good news to the crypto community.
Presently, the adoption and regulation of cryptocurrency and its related activities by the United States is slow compared to other nations of the world. Countries like El Salvador have already adopted the usage of cryptocurrency as a legal tender. The US government is doing everything to ensure the USD is not affected by cryptocurrency. However, the executive order by President Biden shows a positive stance toward cryptocurrency.
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