Some in the crypto sector see the Ukraine conflict as a test case for the use of digital assets and the US dollar’s demise. That is not the case for everyone.
Chamath Palihapitiya is a venture capitalist and the founder of the Social Capital investing firm. He also has an odd perspective on things. Above all, he dismissed the notion that Russia’s unlawful incursion on Ukraine searching for crypto assets at the expense of the US currency would result in a favorable outcome.
It is apparent, according to Palihapitiya, that the Russian invasion would not result in the “crypto boom we have all been waiting for.” Rather, both Bitcoin and the dollar appear to be” winning at the time.” He notices several intriguing correlations.
It’s worth noting that Bitcoin is referred to be an “institutional haven.” The coin-primus must succeed in standing out from the rest of the market’s cryptocurrencies.
The US dollar, on the other hand, is exhibiting signs of strength and distinguishing itself from other currencies. He draws a probable relationship from this.
If the price of bitcoin declines, it’s safe to assume that other crypto assets would experience similar losses. Similarly, if dollar-denominated equities decline, non-US assets would underperform.
The so-called Bitcoin dominance, which measures the proportion of the value of the world’s most valuable cryptocurrency in the entire market capitalization, has climbed from 39 to 43 percent since mid-January, which will delight Bitcoin lovers.
Another brilliant BTC maximalist is not seen in the dollar correlation. MicroStrategy CEO Michael Saylor believes that Bitcoin alone can solve a lot of severe world issues, such as inflation, conflict, and starvation.