How Crypto Is Changing Business

How Crypto Is Changing Business

Crypto Questions Arise

While some people insist that the crypto train is just hype and will burst like the dot-com bubble of the early 2000s, others believe that crypto is here to stay. And that both consumers and businesses can build a stronger financial position by utilizing it. 

From a consumer standpoint, one expert says the key comes in understanding the negative trends that can be caused by unstable global situations, like that playing out between Ukraine and Russia currently. 

“One might think that people will try to move a specific amount of resources to support certain activities during a worldwide crisis. For example, we see a significant cash flow from Ukrainian banks because of the Russian military movements. People are afraid, and they try to cash out to keep cash on hand. Refugees from Ukraine in Poland had many issues changing Ukrainian Hryvnia to Polish zloty. No, imagine people would always save some of their money in crypto. Crypto is becoming a reserve currency, especially stable coins. Crypto opens up endless possibilities and opportunities. However, in rough military conditions, as in Ukraine, people most likely prefer to have their money in dollars so they can move quickly, without relying on exchanges, credit cards, etc. Because of the conflict in Ukraine, we’re talking about thousands who are trying to move crypto into dollars,” said Valentin Saitarli, CEO, Exclusive PR Solutions. “At the same time, Putin is looking to finance its military activities. I think that was one of the main reasons Bitcoin dropped in the first part of 2022 when there was a massive sale of Bitcoin and other currencies in Russia.”

Crypto Business Effects

And what about businesses? Crypto is shown to already be changing businesses. Saitarli believes crypto will create much more volatility in certain markets, which can be destabilizing for some businesses. 

“We’re going to see marketers and traders take advantage of this. We’re probably going to see a tremendous amount of volatility because while some people will try to cash out, many people will be trying to move their money from one place to another. And cryptocurrency works well for both purposes,” said Saitarli. “Marketers will be able to take advantage of different situations in the bear market and the volatility. The current unstable global situation related to the Ukrainian war and Russian sanctions will create lots of movement in the crypto space. In particular, Russian members of Parliament and their families have a significant amount of money saved and hidden in Europe and the United States. People who are afraid of sanctions or are connected to sanctions will probably move those assets out of classical banks because they will be afraid of getting those assets frozen. They will carry those assets into cryptos such as Bitcoin and Ethereum. They will probably move more into stable coins such as BUSD and Ether. Binance coin is also quite an attractive, stable coin for such an operation.”

How Crypto Will Grow Through ‘22

As to expansion, while crypto isn’t expected to go anywhere over the coming year, its expansion may slow somewhat as the world watches the situation between Ukraine and Russia. 

“We believe the expansion of the market will be a bit slower than might be predicted by other agencies or institutional analysts for one simple reason. Ukraine is a global crypto hub, and Ukrainian developers and artists play a significant role in NFT development and crypto development, as well as Russians. From one perspective, the Ukrainian market will be significantly hit by Russian instability, and from another perspective, the Ukrainian developers will have a hard time moving out of the country. Throughout the world, 67% of crypto developers are men, so the percentage of men is significantly higher than that of women. In the case of military operations, men will be mobilized for military duty. And who are those men? Young men who are in crypto, who are in the market and development. They will have no choice but to be mobilized for many. In this regard, there is a lot of uncertainty for markets as well,” said Saitarli. 

More about crypto, including how businesses can build a strong crypto strategy, can be read later this week.

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ABOUT THE AUTHOR

Kristina Knight is a freelance writer with more than 15 years of experience writing on varied topics. Kristina’s focus for the past 10 years has been the small business, online marketing, and banking sectors, however, she keeps things interesting by writing about her experiences as an adoptive mom, parenting, and education issues. Kristina’s work has appeared with BizReport.com, NBC News, Soaps.com, DisasterNewsNetwork, and many more publications.