Mike Novogratz, an American cryptocurrency investor, and billionaire have raised concerns to secure his wealth by expanding his investment in Bitcoin (BTC), sighting that it is safer to keep his money where the influence of the government cannot reach.
The conflict between Russia and Ukraine, which has resulted in a war, one that has captured the attention of the whole world, has made the Russian Federation a recipient of some severe economic sanctions. This has affected the patronage of fiat currency and has increased the viability of crypto, being a decentralized asset.
According to a report by BBC, one of the sanctions issued to Russia is that the assets of prominent banks in the country are to be frozen and exited from the United Kingdom’s financial system.
While this is justifiable, being a way to discourage the war, take a stance for peace, and call President Putin to order, the patronage for the currencies of the nations at war is negatively affected. If banks are shut down, access to physical cash is limited. However, the case is different if the medium of exchange is a decentralized currency.
These recent events have spurred Novogratz who doubles as the CEO of Galaxy Investment Partners, a cryptocurrency holdings firm, to boost his patronage of crypto assets. He said he wants “to have money that lives outside of traditional power. That’s why Bitcoin was created because people don’t trust governments.”
He also noted that very soon, regular persons will join the trend and take advantage of the blockchain.
He however made it very explicit, stating that investing in the crypto sphere does not mean that Bitcoin should be used as a medium to avoid sanctions, it is a digital asset that enables users to do away with traditional means of banking and its bureaucracies, which is soon giving way to a more flexible approach.
The sanctions administered against banks in Russia by Mastercard, as well as their billionaires and companies, have affected the Ruble and in extension, the general economy. This occurrence has enlightened onlookers, bringing about a massive investment in digital assets.