Source: Screenshot from a video, Youtube/Reuters
Many cryptocurrency players took to social platforms to condemn Russia's invasion of Ukraine, with people noting that it would put the lives of millions of civilians at stake, adding that it is now essential to "have some perspective" and not just worry about wallets.
Echoing this view, Sam Bankman-Fried, founder and CEO of major crypto exchange FTX, warned that there could be a war, which is “really bad for the world.” He urged everyone to "go out there and do something nice for someone."
However, he seemed confused by the performance of bitcoin (BTC) prices. He pointed to the fact that the Ukrainian hryvnia has bottomed out against the US dollar, implying that people living there "might look to alternatives" like bitcoin. And it seems that some of them are looking at BTC.
On the other hand, Bankman-Fried argued that BTC could fall because people need money. “Basically selling BTC, along with stocks, etc., to pay for the war,” he said.
Mark Jeffrey, an American author and cryptocurrency investor, argued that BTC could fall because people are turning to silver and see it as an "exit." He added that people will turn to gold and BTC again when they "start thinking about how to preserve wealth in crazy inflation."
Meanwhile, Polylunar, a pseudonymous bitcoin fanatic, called it a turning point in global geopolitics. They said that any Western sanctions, including Russia's ban on the SWIFT financial system, could not deter Russia.
Polylunar further speculated that Russia would not stop at Ukraine.
"To secure their homeland, they will have to move further west into the Baltic, by any means possible, not today, but not too far into the future," the pseudonymous crypto user said.
According to Polylunar, this situation does not only concern Russia and Ukraine. Additionally, it may involve China (and its relationship with Taiwan), several European countries, and the United States.
Furthermore, this could have far-reaching consequences for USD and BTC. They stated that the US dollar could see its end as a world reserve currency, while bitcoin, if Russia decides to adopt it, could become an alternative.
For #Bitcoin all this will not matter, to a certain extent unfortunately everything is fine for bitcoin but on days like these I want to think of those affected by these devastating changes, more than many do not know what awaits them.
— Polylunar (@Polylunar_) February 24, 2022However, Tone Vays, a derivatives trader and Bitcoin analyst, doesn't see "World War III happening." leave the rest alone if NATO shrinks."
Julian Hosp, CEO and co-founder of decentralized finance (DeFi) protocol CakeDeFi, shared what he thought was the reaction from the West. He advocated a ban on SWIFT, the outlawing of Russia-related securities, an embargo on Russian oil and gas, the cessation of all non-food exports to Russia, and a host of other economic sanctions.
In the midst of all this, another strong argument revolved around the impact of this attack on world energy prices. According to a 2021 report by BP, a British multinational oil and gas company, Russia is the third largest oil producer, after the United States and Saudi Arabia. Therefore, sanctions against Russia could drive energy prices to new levels and exacerbate inflation.
Pseudonymous crypto user AusMMT noted that stagflation, economic stagnation accompanied by inflation, can occur if renewable energy is not implemented more quickly.