In the conflict in Ukraine, cryptocurrencies are taking a hitherto unheard-of role. These virtual currencies are aiding the government in raising millions of dollars to pay for its defense against the Russian invasion. In their article, Aljazeera dig into how Ukraine started using cryptocurrencies. Furthermore, they highlight how the emerging crypto sector affects the country during the conflict.
Why has bitcoin UAH gained such traction in the country?
Ukraine ranks second after the US in terms of crypto usage. Unfortunately, the war that has been happening in Eastern Europe after Russian troops entered on February 24 has been the biggest factor.
The usage of bitcoin in Ukraine was on the rise even before the onset of the conflict. The country ranked fourth in 2021 for its inhabitants’ adoption of cryptos. The research group, Chainalysis, created this global ranking. However, as soon as hostilities with Russia began, the Ukrainian government deliberately chose to increase its usage of cryptocurrencies. The aim was to sustain its economy.
On the second day of the conflict, Mykhailo Fedorov, Ukraine’s digital transformation minister, made a crucial move. According to reports, the minister gave his assistant the go-ahead to create official state wallets that would support bitcoin transactions. Since the start of the Russian assault, Reuters reports that Kyiv has raised millions in cryptocurrency due to this audacious move. The funds have helped the country’s troops and purchase military supplies.
What is bitcoin?
Bitcoin is a cryptocurrency or digital asset that eliminates the need for a third party in financial transactions. It acts as money and is as anonymous as cash for most purposes. Bitcoin can be purchased on many different websites, and it is delivered to blockchain miners as payment for their work in confirming transactions.
An unidentified creator or group of developers introduced Bitcoin to the broader public in 2009. They did so under the moniker Satoshi Nakamoto. Ever since it has developed into the cryptocurrency with the greatest global recognition.
Usability of bitcoin UAH
Bitcoin resembles an online cash equivalent. Individuals can use it to purchase goods and services. The initial during the launch of Bitcoin was to act as a peer-to-peer payment system. However, as its value rises, and it faces competition from other blockchains and cryptocurrencies, its use cases are expanding.
Now some businesses are starting to accept its expanding effect. For instance, PayPal, an online payment provider, said in October 2021 that it would allow its customers to buy and sell Bitcoin.
How to buy bitcoin in UAH
Individuals can buy bitcoin through a cryptocurrency exchange if they don’t want to mine it. Due to its high price, most people won’t be able to buy a whole bitcoin. Luckily, one can buy fractions of it on these exchanges using fiat money like dollars or hryvnia. For instance, by setting up an account and funding it, users can purchase bitcoin on Cryptorunner. Users will fund their accounts using their bank account, credit card, or debit card.