In this article, we discuss the 5 cryptocurrencies to watch amid Russia’s attack on Ukraine. If you want to read our detailed analysis of these currencies, go directly to the 10 Cryptocurrencies to Watch Amid Russia’s Attack on Ukraine.
5. Ripple
Ripple is one of the cryptocurrencies most likely to be affected by the rising political tensions in Eastern Europe. The Ripple coin is used on RippleNet, a cross-border money exchange platform that is used by businesses to act as an alternative to SWIFT payments. As the West discussed placing sanctions on Russia for the Ukraine invasion, there has been increasing talk around banning Russian businesses from SWIFT payments. If this happens, RippleNet could emerge as a viable alternative.
The advantages of using Ripple on the platform include faster speeds, minor fees, and more privacy with regards to transactions compared to SWIFT payments. Another advantage is that over a hundred banks worldwide use the network already, giving these businesses access to traditional banking systems as well. Ripple was founded by Arthur Britto, David Schwartz, and Ryan Fugger in 2012.
4. Litecoin
Litecoin is the most popular Bitcoin alternative in Russia. Amid sanctions, the economic fortunes of ordinary Russians could decline as trade with the West becomes tougher. In this scenario, it may not be viable for these people to invest in expensive coins like Bitcoin, which is the most popular cryptocurrency around the globe and also the most pricey. Litecoin, one of the earliest Bitcoin spin-offs and similar to the parent coin in many ways except transaction speeds, could see a surge in value.
Litecoin was founded by Charlie Lee, a former Google employee. One of the biggest reasons for buying Litecoin is that the network on which it runs offers transaction speeds that are four times faster than the Bitcoin network. Other differences include block generation time, hashing algorithm, and the maximum number of coins.
3. Tether
Interest in Tether has also increased amid the Russian invasion of Ukraine. Tether is a stablecoin and the value of the coin is tied to the US dollar. Since it is tied to a tangible asset, unlike other cryptocurrencies, the coin is less susceptible to price volatility. However, amid the threat of Russian cyberattacks, one of the concerns being raised revolves around Russian hackers buying up huge amounts of the coin and then selling it to collapse the price.
This would hurt the overall crypto system as well since coins like Tether, due to their relatively stable nature, are often used as tokens to trade between different currencies. Conversely, as Russians use the crypto verse to circumvent sanctions, they could also use the coin more and more to convert between different currencies during sanctions.
2. Ethereum
Ethereum is the second most popular coin in the world. It was developed by Vitalik Buterin, a Russian-born crypto pioneer whose net worth is estimated to be in excess of $1 billion. There has been a lot of speculation around Buterin, Ethereum, and their loyalties amid the Ukraine crisis. Vitalik Buterin has come out and blasted Russia for invading Ukraine, affirming that he will not stay neutral in this crisis situation. This statement could face blowback in Russia where Ethereum is one of the most popular coins.
Ethereum is marketed as a more secure and more environment-friendly alternative to Bitcoin. The Ethereum network is presently in the process of transitioning from proof-of-work to proof-of-stake. This would make the network faster than it currently is, making more transactions per second possible.
1. Bitcoin
Bitcoin is the most popular coin in Russia and around the globe. The price of the coin has already dropped by close to 8% since February 23 as the Russian invasion of Ukraine affects world markets. Data from CoinMarketCap indicates that over $150 billion have been wiped from the crypto market since the invasion started. However, as the West prepares to impose sanctions on Russia, the price of the coin could jump as Russians use it as an alternative to the dollar for business.
Bitcoin was developed by Satoshi Nakamoto and launched in 2008. It is one of the oldest coins on the market. It is the most widely used cryptocurrencies in the world, accepted by a majority of exchanges. A lot of Russian businesses already trade using these exchanges.
You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Warren Buffett Stocks to Buy Now.
