The Rise of Bitcoin: A Brief Overview
Just when you thought Bitcoin couldn’t climb any higher, it bust onto the scene like it’s trying to win the Olympic gold medal of cryptocurrency. Recently, on a sunny Monday, Bitcoin shot up to more than $41,000, giving it a hearty market cap of around $780 billion. CoinMarketCap reports that this surge represents a hefty 5.7% increase in just 24 hours. If Bitcoin were a contestant, it would be flexing its muscles while standing victoriously over the now overwhelmed Russian ruble.
The Numbers Game: Bitcoin vs. Ruble
To put things into perspective, Bitcoin’s market capitalization not only eclipsed that of the Russian ruble, which sits at approximately $629 billion (65.3 trillion rubles as per the Central Bank of Russia) but also raised eyebrows worldwide. It seems like Bitcoin has become the heavyweight champion in the financial ring, leaving the ruble to wrestle with its ongoing troubles.
What’s Happening with the Ruble?
The ruble is facing a bout of inflation like it’s going out of style, primarily due to the sanctions imposed by the United States and its buddies following Russia’s controversial invasion of Ukraine. In a bid to counterbalance the economic crisis, the Russian central bank didn’t hold back from cranking up their key interest rates from 9.5% to a staggering 20% on Monday. Talk about throwing everything including the kitchen sink!
Crypto: The New Stability?
Meanwhile, residents of both Russia and Ukraine seem to have latched onto cryptocurrency with a fervor perhaps not seen since the dawn of the internet. Trading activity on exchanges has surged, propelled by fears over the stability of their national currencies. Crypto is akin to a superhero cape for many, offering a means to solicit donations for pro-Ukraine causes while possibly being a hedge against their worry-laden fiat currency. For example, Ukraine’s Kuna exchange reported a brisk trading volume of $4.4 million in just 24 hours on the day Russian forces initiated their attack.
The Historical Context of Flippening
This latest flippening episode isn’t the first time Bitcoin showed up the ruble. It echoes the memory of more than a year ago when Bitcoin had a brief moment of fame, skyrocketing to an all-time high of $48,200 after Tesla decided that $1.5 billion worth of Bitcoin was a great investment. Bitcoin’s market value then hit $871 billion, leaving even more established currencies scratching their heads.
