The ruble is going to hell (not anymore?) - page 6.

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Quote from: Sithara007 on March 01, 2022, 09:20:37 PM

All this is good news for currency traders. But for the ordinary investors and pensioners within Russia, it is disastrous. Many of them would have lost a large part of their life savings. Whatever savings they have now is worth only around 30% of what it was in 2014. And given the fact that Russia imports a large part of its food products and electronics, the inflation rate is also going to go up. The only saving grace is that the government will be getting more rubles for every barrel of crude oil exported by the oil companies.

I think things like this are what are going to drive bitcoin up in the long run. People are going to learn the hard way that state currencies are ruinous and that the best way to keep your savings is Bitcoin. The only thing that is missing for people to adopt it more massively is a decrease in volatility, which is what many people are afraid of.

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Quote from: Obito on March 01, 2022, 09:57:57 PM

Quote from: VRExpress on March 01, 2022, 10:08:05 AM

I'm not in support of this war as I care only for peace, this war will only make crypto get to a better place faster because now Ukraine and Russia people will understand the real purpose of crypto and BTC no wonder the market is recovering fast today.

Russia would be the one that's going to benefit the most in this scenario though although it's going to be a problem for them though as there's only so much bitcoin that they can get out of it. Of course no one is supporting this war, pretty sure that the only ones that support this slaughter is the higher ups in Russia.

If we look at it actually almost all countries in the world condemn what Russia has done to Ukraine,
I don't know how this war will end but I hope all of this can be over soon,
I think humanity and peace are above all else so we'll see what happens in the future

Obito

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Quote from: VRExpress on March 01, 2022, 10:08:05 AM

I'm not in support of this war as I care only for peace, this war will only make crypto get to a better place faster because now Ukraine and Russia people will understand the real purpose of crypto and BTC no wonder the market is recovering fast today.

Russia would be the one that's going to benefit the most in this scenario though although it's going to be a problem for them though as there's only so much bitcoin that they can get out of it. Of course no one is supporting this war, pretty sure that the only ones that support this slaughter is the higher ups in Russia.

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Quote from: The Sceptical Chymist on February 28, 2022, 11:32:23 PM

Man, I hope pension funds and retirement accounts are sticking to the stock and bond markets instead of dabbling in foreign currency (especially Russia's). But I bet there's a lot of currency traders who are making a killing on this--and also a lot who are losing their shirts.

All this is good news for currency traders. But for the ordinary investors and pensioners within Russia, it is disastrous. Many of them would have lost a large part of their life savings. Whatever savings they have now is worth only around 30% of what it was in 2014. And given the fact that Russia imports a large part of its food products and electronics, the inflation rate is also going to go up. The only saving grace is that the government will be getting more rubles for every barrel of crude oil exported by the oil companies.

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Quote from: Findingnemo on March 01, 2022, 10:35:08 AM

Propably end of Russian Central bank and wakeup call for every individuals who hold their assets in the form of Fiat. How can government says what to do with our earned money? They didn't gave it for free we all worked our ass to get some and multiply with our smart work for years then suddenly an individual order what we should hold?

They can do what they wanted to because it was from them and people are only borrowing it even if they say that it was on their own hands. This is the downside of using a government/bank owned currency because it can be frozen anytime. There is no one to be blamed here but us if we still continue using fiats.

We have already been warned before about the risks and we are being recommended to use bitcoin. When we work we should prefer to get paid in bitcoin, btc is also ideal for future savings than storing money in the banks because you don't know what can happen with your money. Its value are also going to decrease over time.

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Quote from: Sithara007 on February 28, 2022, 10:42:18 PM

LOL.. this is a complete meltdown... before the oil prices crashed in 2014, the exchange rate was like 1 USD = 30 RUR. Now it is 1 USD = 105 RUR. I have sympathy for anyone who holds his savings in RUR. Pension funds, savings accounts.etc become worthless if being held in the Ruble. One positive that may come out of this is, it may become more difficult for the oligarchs to move their money to London or Paris, and this may force them to spend at least some of that money inside Russia. Putin is not going to be bothered as long as crude stays above $100 per barrel.

In a way I'm sorry for them as well, however we need to be honest we knew this was coming, we knew that at some point in time Russia was going to invade Ukraine so Russian citizens had years to prepare themselves for the situation that we are seeing.

So anyone that is losing a great deal of money is doing so because they did not have the foresight to exchange their local currency for something else that will retain its value in a better way, however while this is without a doubt going to affect the population I'm not so sure the government is going to be that affected by the exchange rate, as it is known that a weak currency is good when you want to export a lot of goods out of your country.

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Well, what are the use of people withdrawing Fiat currency from the Banks, but the Fiat currency are losing value at a record rate? Soon the Russian Ruble will be worthless ..like the Zimbabwean Dollar and they will not be able to use it. Roll Eyes

Russia should have anticipated that the Ruble will suffer ...like Zimbabwe did when Robert Mugabe apposed the West. If these sanctions intensify... we will see a 1 Trillion Ruble banknote. I will convert my fiat (Ruble) to Bitcoin as soon as possible to try and protect it's value against hyperinflation. Wink

Hydrogen

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The ruble appears to be ranked 17th, which shows a decline.

Inflation and currency devaluation are both interesting and confusing to me. I thought venezuela, argentina and turkey were in dire straits given the state of their inflation which greatly overshadows russia's current numbers.

But it seems that to native turks, their inflation is merely business as usual and nothing to get excited about. And so I wonder what true effects a bit of inflation will have upon russia's overall economy, if any. Given that we have seen other nations achieve far worse inflation, without it appearing to be sufficient to drive native born citizens to revolt against the government or engage in other drastic measures. The only tangible effect of inflation appears to be greater poverty and declined standard of living. Everything else remains intact.

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Propably end of Russian Central bank and wakeup call for every individuals who hold their assets in the form of Fiat. How can government says what to do with our earned money? They didn't gave it for free we all worked our ass to get some and multiply with our smart work for years then suddenly an individual order what we should hold?

VRExpress

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I'm not in support of this war as I care only for peace, this war will only make crypto get to a better place faster because now Ukraine and Russia people will understand the real purpose of crypto and BTC no wonder the market is recovering fast today.

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Quote from: crwth on February 28, 2022, 11:59:33 AM

Could this be one of the catalysts on why bitcoin is going up? Because it has increased a lot in the past few hours and probably many people are starting to convert their fiat and I try to preserve the value when using crypto currency.

I wonder if Russian billionaires are doing this as we speak? I believe this is a more probable influence than the average Russian investing. The rich already know their wealth is being hunted down right now and their best option is to move all to an uncensored, decentralized currency.

-
Regards,
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Quote from: adaseb on February 28, 2022, 10:31:26 PM

It seems to be stabilizing at around 104 rub per USD. The reports over the weekend were something crazy like 150-175 rub per USD. Either way, never seen a currency lose this much value in such little time. This is some record.

I think the major reason that the currency is losing value is fear or panic. The currency of a country gets to be affected during such times. The panic is the uncertainty of the next step of action by EU. What makes the Russian economic situation getting worse now is all European countries are against Russia and threatening to shut down her economy. Imagine no flight is landing in euro , activities are crumbling. If the war continues, the rubie is going to fall more and inflation is going to tripple.

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Quote from: Upgrade00 on February 28, 2022, 01:44:10 PM

The sanctions imposed on the state of Russia has been quite steep and was always going to have significant effect on their economy and impact the ruble.
How Russia would react would be interesting to see, as their major plays from this point is their reserve assets and their gold stashes.

Quote from: crwth on February 28, 2022, 11:59:33 AM

Could this be one of the catalysts on why bitcoin is going up? Because it has increased a lot in the past few hours and probably many people are starting to convert their fiat and I try to preserve the value when using crypto currency.

Bitcoin provides a safe haven for citizens from unstable nations and this could be a reason for Russians to switch to bitcoin and consequently improve interest and demand.

I read the information that yesterday Biden asked the cryptocurrency exchanges to block any transactions that are connected with Russia. On the other hand, the Russian government wants to confiscate the population's deposits in its banks in order to support the falling economy and the war in Ukraine. Therefore, it will be increasingly difficult to convert non-cash rubles into bitcoin in Russia.
The Russians were afraid to storm their power and stop their mad Putin, now they have to storm ATMs to withdraw some of the cash.
The ruble is gradually turning into ordinary paper. Putin made a grand gesture to the Russians, promising to pay for every soldier killed in Ukraine to his family money in rubles, which corresponds to 50 dollars. But this amount continues to decrease due to ongoing inflation.

ChiBitCTy

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I think one positive thing from this war, thought not that I’m happy it’s playing out in this way, is the importance of “being your own bank”. Below is more to what you mention here in terms of Russians taking money out of their ATMs in droves. As for Best Change, I’m curious if it’s a supporter of what the government is doing or not. Might have a hard time wearing that going forward if it were me.

pinggoki

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Quote from: crwth on February 28, 2022, 11:59:33 AM

Could this be one of the catalysts on why bitcoin is going up? Because it has increased a lot in the past few hours and probably many people are starting to convert their fiat and I try to preserve the value when using crypto currency.

It's a possibility but I don't think that it's the sole or the biggest factor for the pump of bitcoin, maybe play a large role but that's another story. Ruble will continue to go down as the economic sanctions continue, hopefully the war will eventually end because of the economic sanctions and the price continue to go higher.

poldanmig

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Quote from: tabas on February 28, 2022, 03:28:43 PM

The economic sanction had gone effective immediately. With many financial service abroad have been banning and departing from the Russian government, they're certainly going down. As for the price of bitcoin, it had gone up and possibly Russians were the ones that have contributed on its recent increase. And as the Russian government dealing with the war and the economic sanction, they're also playing their part of it and they have to shutdown their stock market and that really caused their economy one heavy plummet.

Nato state sanctions seem to have started to have an impact on the Russian economy, now many Russian citizens are starting to try to withdraw their money from banks, in recent days the ruble exchange rate has continued to decline and this is the impact of sanctions imposed by western countries to Russia, one the only solution for russian citizens is to exchange rubles today for dollars or bitcoins as an alternative to keep the value of their money from a more significant decline, I think what you say is probably true, the rise in bitcoin price today may be triggered by the purchasing power of the russian people against bitcoin in anticipation of their currency depreciating exchange rate.

OROBTC

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...

This makes me wonder about user safety now re using Russian BTC mixers. Could be a problem it seems to me. My recent thread:

https://bitcointalksearch.org/topic/russian-mixers-might-this-be-a-problem-5387780

The Sceptical Chymist

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Quote from: Poker Player on February 28, 2022, 11:55:24 AM

"President Vladimir Putin banned all Russian residents from transferring hard currency abroad, including for servicing foreign loan contracts, potentially putting much of the country’s $478 billion in external debt at risk of default."

Huh. Well that would probably explain why so many countries are looking to stop this conflict before Russia puts itself into so much war debt that repaying all the other lenders becomes impossible. I have no doubt that world leaders are sympathetic to Ukraine's plight (and they should be), but I'm pretty sure that first and foremost they're thinking about themselves and the bottom line as far as what this thing is going to cost their countries.

What a mess, what a mess.

Quote from: Sithara007 on February 28, 2022, 10:42:18 PM

LOL.. this is a complete meltdown... before the oil prices crashed in 2014, the exchange rate was like 1 USD = 30 RUR. Now it is 1 USD = 105 RUR. I have sympathy for anyone who holds his savings in RUR. Pension funds, savings accounts.etc become worthless if being held in the Ruble.

Man, I hope pension funds and retirement accounts are sticking to the stock and bond markets instead of dabbling in foreign currency (especially Russia's). But I bet there's a lot of currency traders who are making a killing on this--and also a lot who are losing their shirts.

Sithara007

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LOL.. this is a complete meltdown... before the oil prices crashed in 2014, the exchange rate was like 1 USD = 30 RUR. Now it is 1 USD = 105 RUR. I have sympathy for anyone who holds his savings in RUR. Pension funds, savings accounts.etc become worthless if being held in the Ruble. One positive that may come out of this is, it may become more difficult for the oligarchs to move their money to London or Paris, and this may force them to spend at least some of that money inside Russia. Putin is not going to be bothered as long as crude stays above $100 per barrel.

adaseb

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It seems to be stabilizing at around 104 rub per USD. The reports over the weekend were something crazy like 150-175 rub per USD. Either way, never seen a currency lose this much value in such little time. This is some record.

Now here is what is interesting. If you go to Binance, the rate is 94 rub per USD. Why is that? Basically seems like an arbitrage opportunity. However I am guessing is due to fear that you won’t be able to transfer those RUB out due to sanctions. If it was easy then obviously the arbitrage wouldn’t be there with such a huge spread.

Topic: The ruble is going to hell (not anymore?) - page 6. (Read 1066 times)