Ukraine’s cryptocurrency crowdfund shows that cryptocurrency can break boundaries that fiat is not able to break. Crowdfunding with fiat meant that Ukraine had to make use of the bank to withdraw and transfer such money and that was neither possible nor safe because war was already raging in the country at that point.
Since 2020, a lot of countries have started accepting Bitcoin as a form of payment, and some of them have gone to the extent of buying a lot of the crypto with the country’s resources such as Sweden, Singapore, Japan, El Salvador, etc. All of this shows that the crypto adoption age may be nearer than expected. El Salvador in particular is one of the leading countries that are supporting the adoption of cryptocurrencies by countries, and it is leading the way by buying and adding a lot of Bitcoin to the nation’s treasury.
How Did Ukraine’s Bitcoin Crowdfund Work?
Different countries are now showing interest in crypto, and this has made a lot of people aware of crypto and how to make use of it. 2021 saw Bitcoin reach its highest value and this helped to attract a lot of people into the crypto industry. By 2021, crypto has been adopted by many industries and countries by over 888%. These are the highest stats of all time, and all indications show that more positive news about crypto adoption in different places should be expected.
2014 was when the Russia-Ukraine conflict started with Pro-Russia separatists fighting for independence in Ukraine. There are many issues concerning the Russia-Ukraine conflict. Since the last quarter of 2021, there have been tensions between Ukraine and Russia concerning another possible war. And this tension was heightened when about 100 thousand Russian troops were deployed on the Russia-Ukraine border.
When the Russian invasion finally happened, almost all of Ukraine’s banks were rendered useless since most of the citizens of the country were moving to neighbouring countries like Poland. A great way Ukraine can ask for monetary support for weapons and support for the war is through crowdfunding with Bitcoin. $22 million have been raised for Ukraine with Bitcoin and counting, and it shows how global crypto adoption is necessary in case of a situation like Ukraine’s.
It was Ukraine’s Vice-Prime Minister Mykhailo Fedorov’s tweet that led to Ukraine’s Crowdfund. He provided the Bitcoin, Ethereum, and USDT addresses where donations could be sent.
It was after this tweet that people started sending in Bitcoin and other digital tokens they could afford to the wallet that he provided in his tweet and within 3 days, millions were raised to support Ukraine in their difficult time.
According to data that was provided by Elliptic which is a company that helps to analyze and track down activities that are carried out on the blockchain, the Ukrainian official wallet for the donation started receiving cryptocurrency donations on Saturday and by Monday, about $12.8 million worth of cryptocurrency was raised for Ukraine but the number has increased farther.
How Was a Bitcoin Crowdfund Possible?
There are many reasons why Ukraine was able to receive $22 million and counting within a short period in a war-ridden place. This will not be the case assuming Ukraine’s Crowdfund was done with fiat and the reasons include:
Bitcoin Is Decentralized Unlike Fiat:
Each country’s central bank controls the money that is in circulation, but this is not the case in cryptocurrency. Sometimes international banks interfere with monetary activities that countries carry out. Ukraine was able to have control of the funds that were sent to them without any third party being involved and this helps to maintain accountability and prevent corruption.
Ukraine’s Crowdfund with Bitcoin was able to go through because of how secure transacting with cryptocurrency is. With cyber-attacks on Ukraine’s government and financial websites, the only option was the use of Bitcoin since transactions made with Bitcoin are secure in the blockchain.
Transactions made with Bitcoin can also be tracked, and details about it cannot be forged or duplicated. This gives room for more transparency on the usage of these funds that were sent to Ukraine’s government.
Bitcoin is available anywhere:
Bitcoin is a digital currency and it cannot be duplicated. This means that one Bitcoin is one Bitcoin, unlike fiats which are duplicated and printed to look the same. Because of this, the availability is not limited to any particular area and it doesn’t need any money exchange to exchange it into another form of cryptocurrency to be able to make use of it.
Ukraine’s banks are all closed down because of the war and this means that Ukraine’s Crowdfund wouldn’t have been possible if it was done with fiat. But in the case of Bitcoin, there is no place on earth that one cannot stay and receive and make use of your Bitcoin and this is why global crypto adoption should be encouraged.
Lower transaction fees:
When the war in Ukraine started, their economy depreciated and this made their currency go down in value. Helping Ukraine in their fight by sending in fiat would have led to increased fees in transactions. Supporting Ukraine through a Bitcoin Crowdfund meant that the transaction fees on the part of the sender and the Ukrainian government were reduced.
Easy Access To Crypto Funds:
Currently, the financial sector of Ukraine is in disarray, as banks have closed down in the country and this will make it more difficult for transactions to be carried out with fiat. With the use of Bitcoin, funds are easily accessible and the Ukrainian government can purchase weapons and other important things they need to sustain themselves until there is peace.
Ukraine’s crowdfund with Bitcoin is just a case study of how cryptocurrency is breaking limits that fiat is not able to break. The vice prime minister of Ukraine’s announcement, which appealed to people to support Ukraine with donations of cryptocurrency, shows that the crypto adoption age is nearer. Ukraine was able to do this because of the unique features that cryptocurrency have such as being available anywhere, secured transaction, decentralization, and easy access.
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