Home / Cryptocurrency / Russian Government Buying Bitcoin? Largest Bitcoin Price Catalyst.

Russian Government Buying Bitcoin? Largest Bitcoin Price Catalyst.

According to Vladislav Ginko, the new rounds of US sanctions will push Russia to invest in Bitcoin. He said that he was doing well on Russian TV and radio. If this is the case, it could be huge.

The idea of ​​a state level actor getting into the cryptocurrencies in the inevitable and when it happens, it is going to push the bull market to new extremes.

Russia adopting bitcoin:

A country is going to start adopting bitcoins as a percentage of their strategic foreign reserves then Russia may be a prime candidate for that to happen. Recently Russia has been drastically increasing the number of gold reserves. Now gold currently at around $ 41.2 million a ton, in the last months of 2018 Russia bought around 92 tons or $ 3.8 billion worth of gold bringing the total gold stockpile in Russia to 2066 tons or approximately $ 85 billion worth of gold.

Russia has been progressively moving away from the dollar and the dollar is moving away from Russia as well. The United States has been very antagonistic towards Russia so it's no surprise that they would not want to be using the currency of a country which is continually hostile towards them. Russia's US treasury holdings from $ 96.1 billion back in March 2018 to $ 14.4 billion in September 2018. We do not have to be a member of US foreign currency holdings. The Kremlin, of course, fears that US sanctions may end up freezing a significant portion of the country's reserves and that Russia would have been paranoid and its probably not a bad idea to be exploring alternative options.

How would it affect the bitcoin markets:

Currently, the Russian Central Bank has around $ 460 billion worth of gold and foreign currency assets. I know how to diversify into bitcoin could be very interesting. Though if it happens, Russia is going to buy that on the OTC market if we imagine that it is going to take just 1% of the assets which would be $ 4.6 billion invested in bitcoins, that's a massive amount of money.

So the OTC statement would be like $ 1.2 billion and would like more than 1.2 million bitcoins at the current price. Nevertheless, the OTC markets would have a tough time filling those orders in a quick fashion. I know the OTC are going to be regular and buy more bitcoins and they will certainly have an effect on the market. Let's just assume that if Russia is able to fulfill all of its orders via some magical OTCs that have enough bitcoin to meet that demand, that is probably the most common OTC bitcoin on the markets. So then the OTC are now going to change their stockpiles together.

The Sad Truth of the Current State of World Affairs:

The sad truth is the system that has been used in the US-led has been used as a financial weapon against other countries. Finance and money have been weaponized and that's exactly what's happening. Predatory loans against poor countries, for example, sanction regimes etc. It's all one-sided and its all hypocritical but bitcoin does not care.

America's lead, the United States is currently in the United States they are proposing some of their own solutions to free themselves from a country dominated financial system. So France and Germany have announced that they are looking at a new international trading system beyond US control. Germany would likely include Russia in this because they are such major partners that have not been officially part of the announcement and just speculation.

French finance minister Bruno Le Maire or Mr. Bitcoin as they call in France has agreed to the overall idea with Germany. He said that we will be working on an independent European or French-speaking instrument that would allow us to avoid the collateral victims of US extraterritorial sanctions. These countries are the closest allies of the US are looking for alternatives.

They can not use a new SWIFT network, they could just use bitcoins. That would be totally next level if some of the world's biggest economies all started using bitcoins to interact with one another in terms of international transactions. Now the reality of Russia is investing or not investing in bitcoins, we can definitely see the use case.

If you want to talk about this problem, just wait for Russia to announce that it is going to buy 1.2 million bitcoins. You think Japan is going to sit back to watch Russia go up all the bitcoin, You think China will sit back? This kind of country-level FOMO could be unimaginable when it comes down to it. We could see countries literally adding hundreds and thousands of bitcoins to their strategic reserves and for these countries.

What do you fell about the same? Tell us in the comments section below.

Source link