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Consult An Accountant - Crypto Taxation
Since crypto can be a decentralized and private form of banking and wealth storage, governments and banks have a natural animosity concerning it. The pressure is great for regulators and governments to clarify their positions on cryptocurrencies, defi, and other crypto earning endeavors. Rising to the challenge are tax professionals now specializing and striving to keep current in the tax treatment of cryptocurrency earning and investing, no easy task. Speaking to one of these professionals regarding your tax preparation can provide clarity, save you money, and prevent unpleasant dealings with the government.
Crypto is an encrypted transaction making exchanges difficult to track. This makes taxation of them more a matter of trust than provable fact in tax situations. In the past few years there has been a big push by the Canadian government to crack down on day-traders and cryptocurrency investors and earners. This may create issues for crypto users if audited by the CRA from an income tax perspective, as earning, mining, staking, or investing in cryptocurrency vary in forms of income. In Canada, the CRA reports cryptocurrency gains as a capital gain, which can be an inaccurate classification due to a lack of specific regulation. An example is that long-term and short-term crypto holders have not been able to keep track of losses or gains because purchasing crypto is not the only way they have come out owning it, and there is no clear entry value. In other cases, holding crypto for a time periods before and after the addition or removal of regulations, because even today the rules are still in progress.
The best advice is to consult with a tax professional, one that is specializing in crypto, and plan for the most reasonable way to report crypto investments and earnings. Operating under the proper tax guidelines clients can remain protected against scrutiny from both governments and regulators. Make sure you offer your tax professional a complete picture of your portfolio and work with them to achieve an honest and accurate appraisal of tax obligations.
Binance Restored Bank Transfer Functionalities For Account Users In Europe
Binance has announced that it has completely restored bank transfer functionalities for account users in Europe, 8 months after stopping the service due to regulatory pressure.
Binance's European customers, with the exception of those in the Netherlands and Switzerland, now have accessibility to both British Pound as well as Euro withdrawals and deposits thanks to the FPS (Faster Payment Services) and SEPA (Single Euro Payment Area) rails.
FPS and SEPA enable consumers in Europe to transfer Pounds and Euros using their respective bank accounts. Binance representatives stated that new deposits and withdrawals would be made through a cooperation with the United Kingdom based payments company known as Paysafe.
The Russia-Ukraine War: A Curious Case For Bitcoin And Crypto
Generally speaking, there is no such thing as good or bad in times of crisis as instead there is often just the best course of action under the current circumstances. So, is crypto beneficial in the light of Russias invasion of Ukraine or are these digital assets more trouble than theyre worth? The answer may not be so straightforward.
The Ukrainian side
Crypto has increasingly become a more mainstream component of the global financial system, which also means that it is now a significant part of international warfare. This was made evident when Russia invaded Ukraine which led to millions of dollars in crypto being donated to help Ukraine fight against their neighbors. In fact, many Ukranians are currently relying on crypto for long-term storage and plan to make conversions back to fiat as soon as the conflict ends.
Some Ukrainians are thus turning to cryptocurrencies as a viable substitute for local financial institutions, which are reportedly restricting access to bank accounts and international funds. In a situation when governments are in disarray, it is therefore difficult to rely on traditional banks, not to mention the long-lasting effect of the increasing apprehension about surveillance. As a result, a largely anonymous system with no government involvement could indeed be very desirable.
But what about Russia?
The romantic version of crypto in crisis, which portrays it as a valid alternative for individuals in desperate situations, inadvertently obscures the industrys darker side. Its an important point to consider, particularly in relation to Russia.
Well before Russia invaded Ukraine, the U.S administration was concerned that cryptocurrencies might dilute the impact of economic sanctions. In the past, Iran had employed Bitcoin mining to circumvent trade embargoes, for instance.
Restricting Russian access to crypto might have serious consequences for the country's economic longevity as cryptocurrencies have rapidly grown in popularity there since Russia is also the worlds third biggest BTC miner. Additionally, just as pro-Ukrainian parties have been able to raise funds using cryptocurrencies, so have pro-Russian separatist movements in Ukraine, particularly in 2014 when Russia attacked and occupied Crimea.
Whats the solution?
Ultimately, its difficult to ascertain what the best course of action is right now. The recent situation in Canada involving The Freedom Convoy is yet another example of the growing use-case for crypto. Still, we will have to wait and see how this industry continues to grow and in which direction.
Bitcoin Ban Dropped From EU’s Regulatory Plans
A portion of a planned regulation in the European Union has been reportedly cancelled which would have otherwise made it illegal for cryptocurrency services to deal in coins based on PoW (Proof-of-Work). PoW is the consensus process that both Bitcoin (BTC) and Ethereum (ETH) utilize for mining purposes as well as to protect their respective networks.
The role of MiCA
The MiCA (Markets in Cryptocurrency Assets) bill was introduced by a coalition led by Stefan Berger and was initially scheduled for a vote in the European Parliament on February 28th. However, it was postponed when many members of parliament objected to a clause about PoW. Berger verified that paragraph 61 (9c) of the bill was eliminated entirely following the influx of objections and complaints.
MiCA has the ability to greatly impact European crypto adoption. It was first suggested two years ago and would essentially force the European Central Bank to create consistent rules for crypto-asset service providers as well as issuers at the EU level. In a nutshell, it would provide a comprehensive regulatory framework for cryptocurrency assets throughout the EU, something the United States and other countries are currently still working on.
Environmental concerns or something more?
It is no secret that one of the biggest criticisms made against the crypto industry is that mining digital assets such as Bitcoin is causing irreversible damage to the ecosystem. Environment-related anxieties are also weighing heavily on Europe, whose member countries all strive to reach the Paris Agreement's climate standards. Finanspektionen, Sweden's financial regulator, had even suggested a complete ban on mining BTC and various other PoW coins last year, stating that the energy expense was simply not worth the advantages.
Nevertheless, many remain hopeful for this industry and are optimistic about its chances following the aforementioned decision by the EU to get rid of the regulatory aspect which would have adversely affected the crypto sector in all of Europe.
Visa and Mastercard Have Joined PayPal In Ceasing Business Operations In Russia
Visa and Mastercard have now joined PayPal in ceasing business operations in Russia, highlighting the country's continuing invasion of Ukraine as the main reason. Many believe that this will lead to the Russians relying more heavily on crypto from now on as a result.
Visa has already started working towards discontinuing all transactions in Russia, although it will reportedly take a couple of days. Mastercard has similarly stated that it will stop its network services in Russia as soon as possible.
According to Al Kelly, CEO and Chairman of Visa Inc., the payment processor felt obligated to act following Russia's invasion of Ukraine, and the deplorable actions that have since been observed.
Moreover, Mastercard claims that in addition to barring specific Russian financial institutions, it will also discontinue support for any and all cards issued by Russian banks and shall even prohibit transactions using cards that were issued outside Russia but were still used at various Russian ATMs or merchants.
Lethbridge College teams up with Liquid Avatar Technologies to create a virtual campus in the metaverse
Lethbridge College teams up with Liquid Avatar Technologies to
create a virtual campus in the metaverse
A virtual Lethbridge College will be the first of its kind, allowing students to occupy property in
March 3, 2022  Today, Lethbridge Colleges Centre for Technology, Environment and Design
(CTED) announced that it is partnering with Liquid Avatar Technologies Inc., a publicly traded
global blockchain and fintech solutions company, to launch a first of its kind work-integrated
learning opportunity for students. Liquid Avatar Technologies is providing 9,000 plots of land
within its Aftermath Islands Metaverse a network of spaces where users can create a virtual
world parallel to their physical one. Students will begin engaging in the new program and
mentorship opportunities by the end of the winter 2022 semester.
Collectively named Lethbridge College Island, on Aftermath Islands, Lethbridge students will
learn how to work, play, learn, game, entertain and earn in the metaverse. In addition to the
virtual land, up to 100,000 in-game currency credits are being made available to the college.
Those credits can be used to build, buy and trade assets like additional property, objects,
landscape items and even avatars.
Students in Interior Design Technology, Virtual and Augmented Reality and Architectural
Animation Technology programs will build on the virtual island creating structures and
businesses and completing transactions. Each student will receive a plot of virtual land. The plot
and all the assets they create for it will remain their property for as long as they choose. The
college will also have a significant parcel of virtual land to provide students with virtual events,
learning and other services.
Im so excited for this partnership with Liquid Avatar Technologies, says Cherie Bowker, chair
of Lethbridge Colleges School of Spatial Design Technologies. Our students will learn so much
about entrepreneurship and building in the metaverse and will gain a much greater
understanding of digital space and digital identity while these worlds evolve and grow. We are
proud of how we lead in this space, and we are thrilled to work with the skillful, talented and
creative Liquid Avatar team.
David Lucatch, President, CEO and Chair of Liquid Avatar Technologies, has spent the past 25
years developing technologies and taking them to market. Part of his recent resume includes
co-founding Aftermath Islands Metaverse a planned virtual environment that provides online
users with theme-based first-person Augmented Reality (AR) and Virtual Reality (VR)
experiences, quests, games and integrated e-commerce activities. David, and the team at
Liquid Avatar Technologies will also be mentoring Lethbridge College students to further
process their education in the metaverse.
Providing the next generation of creative and technical thinkers with the tools to engage in
new technologies that are primed to change consumer behaviour is an exciting opportunity for
Liquid Avatar Technologies and Aftermath Islands, said David Lucatch, President, CEO & Chair,
Liquid Avatar Technologies and Managing Director of Aftermath Islands Metaverse Limited. We
envision this collaboration with Lethbridge College as a sandbox for learning and acquiring
significant tangible experience, providing Canadian students with an advantage when entering
the evolving job market.
CTED students will have hands-on opportunities to build out Lethbridge College Island by
working closely with experts in the field, as well as faculty, who will mentor them in the
development of the property.
Our students are sure to gain a better sense of working outside their comfort zones as they
tackle real-world problems and develop core competencies such as collaboration and leadership,
while at the same time increasing their employability, says Candace Lewko, Associate Dean of
the Centre for Technology, Environment and Design. We are confident our students will be
making an impact and will be equipped with all the skills necessary to join the workforce.
About Lethbridge College
Established in 1957 as Canadas first publicly funded community college, Lethbridge College is a
board-governed institution serving the training and applied research needs of southern Alberta.
As we approach our 65th anniversary, we look to the horizon and recognize the need to address
our growing populations of learners, and to facilitate innovation and new opportunities. We will
continue to build on our successes and stay in tune with the changing world of technology and
About Aftermath Islands Metaverse Limited - www.aftermathislands.com
Aftermath Islands Metaverse Limited is a Barbados corporation which is 50% owned and is
controlled by Oasis Digital Studios Limited, a wholly owned subsidiary of Liquid Avatar
Aftermath Islands as first described in the initial whitepaper published in 2017 and then
subsequently updated, was based on the premise of a water-world with islands that
represented destinations in a global virtual game. Since then, the Aftermath Islands metaverse
has evolved and now represents exciting themed based islands, communities, and estates
where players can experience a wide range of adventures and opportunities.
In Aftermath Islands virtual world, users can buy, develop, trade, and sell Virtual Land (VL),
property and assets, like buildings, crafted items, transport, and other items all through NFTs, a
non-fungible token that represents the ownership of virtual and other assets. Each plot or
parcel of VL is unique and owners get to choose what content they want to publish on their VL.
This can range from simple scenery and structures to an interactive game, store, warehouse,
dwelling, facility, or destination. Users can purchase VL as well as all other goods and services
in Aftermath Islands with CREDITS, the current code name for in-game currency, fiat and other
authorized currencies, coins, and tokens.
Aftermath Islands is a shared virtual world, much like the Metaverse described by author Ernest
Cline in his science-fiction novels Ready Player One and Ready Player Two. Expected to launch
mid-2022, Aftermath Islands will allow users to connect and interact with each other, create
content, craft, participate in activities and quests and play games. Aftermath Islands will have a
virtual economy where users can engage in a myriad of in-world economic transactions as well
as monetize the content, items, quests, and applications they build.
For more information about Aftermath Islands, please visit www.aftermathislands.com
About Liquid Avatar Technologies Inc. - www.liquidavatartechnologies.com
Liquid Avatar Technologies Inc. focuses on the verification, management and monetization of
Self Sovereign Identity, empowering users to control and benefit from the use of their online
The Liquid Avatar Mobile App, available in the Apple App Store and Google Play is a verified Self
Sovereign Identity platform that empowers users to create high quality digital icons
representing their online personas. These icons allow users to manage and control their digital
identity and Verifiable Access and Identity Credentials, and to use Liquid Avatars to share public
and permission based private data when they want and with whom they want.
The Liquid Avatar Verifiable Credentials Ecosystem (LAVCE) has been developed to support all
participants in a digital credential ecosystem, including the Holder, Issuer and Verifier, using
state-of-the-art blockchain and open standards technologies initially as a node on the Indicio
Network. The Company is a voting and steering committee member of the Trust over IP
Foundation, founding and steering committee member of Cardea, a Linux Foundation Public
Health project, member of the Good Health Pass collaborative, DIACC, the Covid Credentials
Initiative ("CCI"), The Linux Foundation and a founding member of the Lumedic Exchange.
The Company has a suite of early-stage revenue generating programs that support the Liquid
Avatar Mobile App program, including KABN KASH, a cash back and reward program that has
over 500 leading online merchants and is working to release its own branded network payment
The Companys subsidiary, Oasis Digital Studios, is a creative and development agency that
supports a wide range of artists, talent, and enterprises with Non-Fungible Token (NFT)
solutions and has acquired 50% and control of the Aftermath Islands Metaverse program.
Liquid Avatar Technologies Inc. is publicly listed on the Canadian Securities Exchange (CSE)
under the symbol "LQID" (CSE:LQID).
The Company also trades in the United States, on the OTCQB under the symbol "LQAVF" and in
Frankfurt under the symbol "4T51".
If you have not already joined our mailing list and would like to receive updates on Liquid
Avatar Technologies Inc., please click here to join!
For more information, please visit www.liquidavatartechnologies.com
For further information, please contact:
Chief Executive Officer
647-725-7742 Ext. 701 [email protected]
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
All websites referred to are expressly not incorporated by reference into this press release.
Forward-Looking Information and Statements
This press release contains certain forward-looking information within the meaning of applicable
Canadian securities legislation and may also contain statements that may constitute forward-looking
statements within the meaning of the safe harbor provisions of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not
representative of historical facts or information or current condition, but instead represent only the
Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are
inherently uncertain and outside of the Companys control. Generally, such forward-looking information or
forward-looking statements can be identified by the use of forward-looking terminology such as plans,
expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends,
anticipates or does not anticipate, or believes, or variations of such words and phrases or may contain
statements that certain actions, events or results may, could, would, might or will be taken, will
continue, will occur or will be achieved.
The forward-looking information and forward-looking statements contained herein include, but is not
limited to, statements regarding the future launch of in-game activities, sales of digital and physical
collectibles, Non-Fungible Tokens and other related products through Oasis Digital Studios and / or its
clients, partners and other service providers, statements regarding the future capabilities of LAVCE or the
operation of an Indicio Network Node, expected geographic expansion, the ability of the Company to
generate revenues, roll out new programs and to successfully achieve business objectives, and expectations
for other economic, business, and/or competitive factors.
By identifying such information and statements in this manner, the Company is alerting the reader that
such information and statements are subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance, or achievements of the Company to be
materially different from those expressed or implied by such information and statements.
Although the Company believes that the assumptions and factors used in preparing, and the expectations
contained in, the forward-looking information and statements are reasonable, undue reliance should not
be placed on such information and statements, and no assurance or guarantee can be given that such
forward-looking information and statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information and statements. The forward-looking
information and forward-looking statements contained in this press release are made as of the date of this
press release, and the Company does not undertake to update any forward-looking information and/or
forward-looking statements that are contained or referenced herein, except in accordance with applicable
Lugano, Switzerland, Has Struck A Collaboration With Stablecoin Issuer Tether
Lugano, Switzerland, has struck a collaboration with stablecoin issuer Tether in order to establish BTC, USDT, and Lugano's homegrown LVGA Points as potentially legal tender within the city.
The measure goes well beyond the acts of a handful of other Swiss municipalities that have been readily accepting crypto for tax payments for some time. Much like El Salvador, Lugano aims to have all of its companies smoothly utilize crypto for daily transactions as well as allow crypto for taxation purposes.
In related news, Mayor Michele Foletti of Lugano stated that the recent agreement with Tether will go a long way in assisting the city scale up its fintech activities and future growth.
Mayor Foletti added that in recent years, Lugano has been deeply engaged with crypto and blockchain technology, which includes the work on LVGA Points citizen payment tokens, NFTs, and various other blockchain advancements.
What Are the Practical Uses for Crypto
What Are the Practical Uses for Crypto?
Youve probably heard a lot about cryptocurrency. After all, the concept lives and dies on hype, so it wouldnt exist if no one was talking about it. Its probably the case that youve heard its a great investment and that if you invest your money will grow. But then what? Do you simply pull your money out again and transfer it back into USD? It seems like, for a currency that prides itself on not needing to use the banks, it needs to use the banks.
Not necessarily. It turns out, even in these early days, there is still a lot you can use direct cryptocurrency for. Travelling, cars, assets, all have some form of embracement of crypto. If you are also lost in trying to navigate the crypto world, take a look at our guide to practical reasons why you should get involved.
Buying a Lambo or Tesla
Being the pioneer of cryptocurrency itself, its no surprise that Tesla CEO Elon Musk is hinting that he will soon be accepting Bitcoin as a form of payment for his self-driving cars. He has been a vocal supporter of crypto, bringing it to the attention of the masses, for all the ups and downs that come with it, and has always touted crypto as the way of the future.
Hes done so well in fact that Lamborghini are getting in on the act. This isnt due to the owners accepting it as a payment method, but rather crypto luxury marketplace, De Louvois, which allows those with enough crypto to purchase sports cars using Bitcoin.
Travel the world
For the Millennial with an ongoing wanderlust craving, you can now even see the world with Bitcoin. At the moment, travel agents like CheapAir and Destinia are accepting the currency to book flights, hotels, and rental cars, but more are expected to get on board. And those who want to stay in an apartment can look to CryptoCribs to book a place with Bitcoin or Ethereum.
Plus, the local currency will be accounted for, with the growth of the Bitcoin ATM market exploding allowing travelers to withdraw the local currency in a lot of major cities around the world. So you dont need to worry about a conversion rate once you get there.
A lot of online casinos have also embraced cryptocurrency. You will see a lot of payment options on all casino websites, but more and more of them are embracing crypto as a means of depositing into the site.
You can also withdraw from the site with crypto, sending an extra chunk of change to your e-wallet. Due to the lack of red tape around the payments, crypto is faster at sending you your money, so it has become popular amongst gamblers.
Be paid to post
So being an influencer is nothing new. People all over the world are being paid to post on social media with the help of affiliate marketing, but now they can be paid in cryptocurrency. Blogging platform Steemit allows its users to receive cryptocurrency financial rewards for posting their content on the site, and thereby growing the platform. Its a win-win for influencers and the site.
Steemit has pointed out it would rather offer their users crypto than to collect data to sell to third parties like Facebook and Instagram are known for, which has made it very popular in emerging markets, and of course the users of the site.
The higher amount a transaction is, the more time and cost it will take to process. Transactions of traditional money have to go through the bank, and all the red tape that comes with that, whereas cryptos decentralized currency has the ability to bypass the bank and its policies.
This means that there have been massive transactions made with hardly any fees or time. For example, Litecoin recently oversaw the transaction of 99 million LTC, which took two and a half minutes and cost $0.40 in fees.
These transfers are also usually private, with Mondero, Zxahs, and PIVX all offering anonymous transactions to their traders. Plus, you can earn interest on Bitcoin and some other cryptocurrencies with yield farming. You can lend your crypto out for interest and occasionally fees to gain some return on your investment.
And of course, as mentioned, you can now get your crypto from an ATM, instantly converting it into the national currency you need wherever you are.
Invest in start-ups
Nowadays, everyone is starting a business. With the invention of the internet, it is more realistic than ever to do it yourself and get something out there youve wanted to see.
Well, now that will be easier to manage when anyone in the world can now be an investor, so says the peoples currency. Crypto has made it a lot easier to get around the red tape that come with stocks, which are a primary resource in getting a new business off the ground. This is what has given it the reputation as the peoples money, allowing for a lot more investment and innovation to land on the market.
Innovations like ICOs and IPOs are allowing potential investors to provide start-ups with the funds they initially need and offer start-ups the chance to raise their own capital. They do this by selling a digital token for an established crypto like Bitcoin or Ethereum and the token is proxy linked to the growth of the business after it begins to trade in the secondary market.
In past cases, ICOs and IPOs have grown in value by over 1,000% and crypto fundraising has raised over $12 billion in two years.
A back up wealth
The problem with the banks is the vast amount of policies and regulations to wade through. How anyone gets anything done is a mystery.
When you hear about cryptocurrency and its decentralized system youll also hear talk of the peoples currency and Robin Hood, taking the socialist approach to appeal to the little man. This is because there is no need for the bank with cryptocurrency. It governs itself and sustains itself.
So, there is no need to worry about the possibility of your crypto assets getting frozen if you make some powerful enemies. It can serve as a valuable Plan B to your finances. Its not uncommon to be accused of a small financial hiccup and soon see your accounts wiped, so having a decent stash of Bitcoin or Ethereum tucked away that the banks cannot access is an appealing idea.
NFT And Crypto Contributions For Ukraine
Earlier this week, CryptoPunk 5364 (currently worth about $200,000) was sent to Ukraine's Ethereum wallet, adding even more value to a contribution drive that has already gathered more than $33 million in cryptocurrencies and digital assets.
Michael Chobanian, the proprietor of a Ukrainian cryptocurrency exchange who is assisting the Ministry of Digital Transformation with the contributions, indicated that a minimum of $14 million in donated crypto has already been spent on military gear and civilian goods such as gas, clothing, water and food.
In related news, Ukraine recently strengthened its crypto fundraising campaign by establishing a Polkadot wallet in response to Gavin Wood's offer of a $5 million personal donation.
Ukraines government has officially begun accepting Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) contributions to help them against the Russian forces and to survive the continuous onslaught.
The governments official Twitter page, as well as the Vice Prime Ministers, have hence both posted public addresses for individuals to donate in BTC, ETH and USDT in order to help with military and humanitarian efforts in the country.
In related news, The National Bank of Ukraine has instructed e-money issuers to halt issuance and replenishment of electronic wallets. The ruling additionally stated that e-money distribution was temporarily prohibited until further notice. In this case, the term e-money most likely refers to fiat currency maintained in digital accounts via services such as PayPal and Venmo.
Canadian Prime Minister Continues Crackdown On Protestors Amid Fears Of A Possible Bank Run
To combat anti-vaccine mandate protests, Canadian Prime Minister Justin Trudeau has taken the unusual step of invoking the Emergencies Act. Mr. Trudeau stated that the measures would be time-limited, fair and appropriate, and that the military would not be deployed.
To that end, the nation's banks maintain the authority to freeze personal accounts of anybody associated with the protests without requiring a judicial order.
No more business with the Freedom Convoy
The federal government of Canada declared that it has ordered various banks and other financial institutions to stop doing business with people aiding the Freedom Convoy, a trucker-led protest campaign against vaccination requirements that has expanded into a larger protest against COVID-19 regulations.
The actions are intended to deplete the demonstrators' resources by leveraging rules prohibiting terrorist financing. However, the move may have an unforeseen impact as various Canadian banks abruptly went offline after the announcement. Several banks experienced technical issues with transaction processing, and the Royal Bank of Canada admitted to having technical problems with its online, mobile banking, and phone systems.
Bank run imminent?
Whatever issues the banks were having appeared to be mostly rectified by the next day, but the disruptions sparked widespread suspicion that Canada was undergoing a bank run or that the institutions had been hacked. Moreover, additional bank accounts are expected to be deactivated in the coming weeks as part of the ongoing campaign to deprive demonstrators and their sympathisers of cash and crypto assets.
Still, despite reports that Canada is witnessing a panic rush on banks, there appears to be little actual evidence to support these claims. The spike in searches for bank runs, on the other hand, raises serious concerns that one may nevertheless occur.
It's uncertain at this time if individuals are shutting their bank accounts in droves, but it's worth noting that concern of a bank run can actually trigger a bank run to happen, although deposit insurance may soften the blow were this to happen.
Furthermore, it would not be surprising if many Canadians abruptly remove their funds from large institutions in the wake of such an event. In any case, we shall soon see if Mr. Trudeau accidentally exacerbated his and Canadians' difficulties by cracking down on seemingly nonviolent protestors and what kind of long-term impact this can have on the cryptocurrency atmosphere and market in the country.
Global Economy Continues To Suffer As Russia-Ukraine Conflict Continues
Indeed, financial markets throughout the world plummeted when Russian President Vladimir Putin decided to invade Ukraine, highlighting growing fears that a lengthy conflict may devastate the worldwide economic system. Shares in IT titans Microsoft and Apple, for example, fell on news of the invasion along with global stock markets. Furthermore, Bitcoin (BTC) fell drastically when the conflict began before making a slight comeback.
Are things as bad as they seem?
Nevertheless, it's doubtful that the global economy would plummet to the rapid, frightening lows experienced during the COVID-19 pandemic, when markets panicked about the unexpected stoppage of global supply chains and a fatal virus for which the public lacked prophylactic immunizations at the time.
Surprisingly though, Western European nations paid Russia for gas routed from Russia via Ukraine in a bizarre turn of events, even as Russian tanks occupied Ukrainian territory and war erupted. Investors quickly decided that this would not be the case for long.
Russia's conflict against Ukraine prompted the price of oil to skyrocket by nearly 10%, while other markets continued to drop. Simultaneously, European natural gas futures have risen by 50%, owing to analysts' fears about future Gazprom exports. The consequences might be far-reaching, as the increasing price of oil, for example, may result in high gas costs for automobile owners in the United States, something which President Joe Biden recently acknowledged.
In related news, a surge of crypto donations have been flooding into Ukraine which are helping cover costs related to medicine, drones, military equipment, and other needs. An increasing number of people are looking toward crypto assets and alternative currencies as traditional banking and financial systems continue to be under threat from the Russian onslaught.
What about inflation?
Inflation has startled experts and the Biden administration by reaching levels not seen since the early 1980s when COVID vaccinations unleashed waves of economic spending which supply-chain bottlenecks have been unable to keep up with. Concurrently, detractors have said that the Biden administration simply produced too much money too quickly, and that it will take time for it to be taken out of the system.
A war in Ukraine, no matter how brief, will thus undoubtedly disrupt supply networks even further. The battle may cause inflation to surge at greater levels than we anticipated only a short while ago. This means that the costs of energy, gas, food, and other basic raw materials might become considerably greater than they are now. Additionally, if prices rise amid mounting worries of a prolonged and unpredictable conflict, customers may hoard their monetary assets rather than spend them, thereby harming the economy even more.
Ultimately, one can only hope for a swift and decisive end to the Russia-Ukraine conflict. Meanwhile, global markets will try their best to hold on as things will undoubtedly get worse before they improve.