Almost everybody connected to the outside world knows about the war between Russia and Ukraine. Many people don’t know that inflation at an alarming rate comes with war. Most of the civilians in Russia do not support the war on Ukraine, which is why the government is closing down private news outlets and social media platforms such as Facebook in the country. In Ukraine, nobody supports the war, as seen with the civilians and the military fighting back the Russian troops. The main effect of the war is on the economy. Immediately after the war began, the two countries economies were the most affected. The Russian Ruble lost value in less than two weeks of the war.
One of the Russian Rubles was worth less than one cent American Dollar. This shows that the economy suffers if a country is faced with sanctions and closed off from the world. Considering that Russian citizens are suffering because of the decisions made by their leaders, people are left to figure out possible solutions to shield them from further economic damage. Traditionally, people have used assets, precious metals, and stones to store their wealth during such periods. In most cases, precious stones and metals such as gold, silver and diamonds hold their value during recessions as currencies lose their value. But after the introduction of cryptocurrency, people can store their wealth more easily and safely. It is easy to get cryptocurrency for any amount of money you have due, unlike precious metals that have to be sold for huge sums.
The war between Ukraine and Russia should be the light bulb moment for many African citizens. Over the years, Africa has suffered many disputes between different groups and people. History has not been kind to Africa as well with the sanctions against many countries due to internal issues, as seen in Libya during Muammar Gaddafi’s term in power. People in Africa should thus consider putting their savings and funds in cryptocurrency rather than using banks to manage their money. Cryptocurrency offers many advantages to people trying to ensure they increase the amount of money they have or hold the value of their wealth. Many factors may lead to a recession in a country, especially in Africa, including the pandemic. Cryptocurrency might be the only solution.
When people transfer their money from local currencies to international cryptocurrencies such as Bitcoin, the value of their money will remain the same or increase as the value of Bitcoin increases. Another advantage is that cryptocurrencies are controlled remotely through phones and computers. This means that people do not have to go to banks to transact. During the recession, long queues can be seen in banks and ATMs as people try to withdraw as much as possible or transfer their money to offshore accounts. These are a few advantages that Africans who use crypto as their preferred savings will gain in an emergency. If they decide to travel across the border, they could easily do so with their money in cryptocurrency, holding its value.