Many countries have adopted cryptocurrencies as the primary means of payments and trade. Hence, the craze between investors and traders is to own some of the most cryptocurrencies circulating in the global market and earn the maximum profit from what these can offer. The profiting advantages cryptocurrency can provide over fiat currencies is what many investors and opportunists are after.
Only a few nationalities can match the passion for cryptocurrency and the technology behind it as the Russians all over the globe. However, you need to be very familiar with everything related to the bitcoin investment before you will start your journey in the trading industry.
Russia is full of investing groups and developers who understand the value of cryptocurrency and the technical wonders of blockchain technology, which is a milestone in the present technology.
So, the question is how cryptocurrencies are performing in the Russian market? What essential roles does the crypto community play in the Russian market? And what is the Future of cryptocurrency in the digital asset Russia possesses and in the Russian economy?
The Rise of Crypto Era in the Russian Market
During the rise of cryptocurrencies in the global market due to the boom in Initial Coin Offerings, Russia was also a powerhouse centre among many other nations. This initial offering, which started many multinational companies, is a spark for investors and traders to invest in new properties and explore the new opportunities that cryptocurrencies and blockchain technology have set up.
Eye-catching initiatives stood above many to be cryptocurrencies of the net worth of millions of dollars. Bitcoin, Ethereum, etc., are some of the most popular and valued cryptocurrencies globally, and Russian investors and people in business contribute to their standing.
Inspired by the growth of cryptocurrencies in the Russian Market, many Russian-based digital currencies have also become a part of the economy. For example, Golos, a Russian-based cryptocurrency inspired by STEEM blockchain technology, was developed by Cyber Fund in 2016 is a much-known virtual coin with a low price of $0.00264 and a market cap of over $7 million.
The Legalization of Cryptocurrency in the Russian Market
In a nation like Russia, where the investing groups and Crypto community have flourished for a long time, digital coins and blockchain technology are appreciated and respected. But, unfortunately, the use of cryptocurrencies is limited. While cryptocurrencies are legal to own in Russia, buying goods and services and other domestic uses with virtual coins is prohibited.
The reason behind the half-baked ban is the fear of financial instability and economic problems cryptocurrencies can make if left unchecked and open to use. In addition, controversies regarding possession and usage of cryptocurrency can occur, and one can get severe theft attacks to the national currencies due to over usage of virtual coins. Therefore, authorities propose tax imposition in cryptocurrencies.
Cryptocurrencies are not entirely banned because investing groups and many start-ups depend on cryptocurrencies. In addition, many small start-up companies are mutually dependent on cryptocurrencies as their initial offerings. As a result, these start-ups will be forced to relocate or shut down entirely upon complete ban.
The Future of cryptocurrencies in the Russian economy
The influence of cryptocurrency and blockchain technology on the Russian economy signifies the dominance of virtual coins and the crypto community. Therefore, the Future of cryptocurrencies seems relatively stable from today’s perspective. However, the prohibition of domestic use of cryptocurrencies is simply because of the practical imperfection these virtual coins have with their present properties.
Suppose considerable changes have been made to the cryptocurrency usage and regulation that ensure the economy’s safety and minimize anonymous usage and transactions made with virtual coins. In that case, the prohibition might step out and complete freedom to use cryptocurrency every Russian buyer and trader should have.
Cryptocurrency has grown out of Russia and many other nations, and Russian investors and buyers have a significant role in developing and upstanding virtual coins to where it stands now. Therefore, cryptocurrencies and Russia have much potential for their economy.
We have seen many Russian developers and investors praising blockchain technology and using it on different applications to benefit themselves. Moreover, the financial and technological advancements of cryptocurrencies are staggering and gratefully engaging for the Russian economic sector.