Ruble-Denominated Bitcoin Volumes Surges to 9-Month High | Hacker News Reader

Ruble-Denominated Bitcoin Volumes Surges to 9-Month High

coindesk.com

46 pointsRafelMri21 comments

Interesting that cryptocurrencies are appealing to the extremes. Both Kingpins and the populace affected by them. One side wants to hide and do harm, the other wants to protect.

Quite curious, the same thing can be used as a tool for opposite purposes.

Almost like it is truly neutral :)

Yeah, it makes sense, it's really indifferent to who you are and what you're doing.

except there is still significant fiddling with the market price by the whales out there.

the crypto gene-pool is still too shallow.

If I understand this correctly, Binance is taking a huge (monetary) risk by selling BTC for Rubles, which may lose value really quickly as the situation progresses, and who knows..

Accepting Rubles at this point might be more risky than BTC, the latter might be more stable, shockingly.

Binance is not taking this risk. The counterparty who is selling BTC for Rubles is taking the monetary risk of the Rubles devaluing.

My guess is that the buyers of Rubles are turning around and selling some or all of them on a foreign currency exchange to mitigate their risk.

Then who would that party be? who is taking this risk then? any idea?

Binance likely couldn't even identify all of the parties if they wanted to.

AMM.

Maybe the Russian Central Bank is buying up rubles to attempt to stabilize it? They probably wouldn't be exchanging them for BTC, but may be the ones holding the rubles at the end.

Person A offers BTC for sale for Rubles.

Person B offers Rubles in order by buy BTC.

Binance is an exchange which matches these two offers.

In this scenario, Person A is taking the risk of the Ruble devaluing.

They certainly are not carrying the Rubles, but automatically converting them to USD or else.

Weaponizing russian central bank dollar reserves was not a good idea for sanctions. It’s hacking your own foot and the branch it stands on. Why would foreign governments such as China maintain dollar reserves now ?

Why did they maintain them before?

Personally I'm not sure I know of a credible answer to either question. A lot of stuff about fiat money is just cargo-cult voodoo.

Do you realise the reasons they did so before the sanctions? The same reasons apply. The possibility of sanctions has always existed and it's possibly pleasing to many countries that the bar for sanctions seems to be set at "invading another country".

Sanctions are fairly arbitrary. China has sanctions on them for trying to become self sufficient with semi conductors. Iran has sanctions for trying to build nuclear weapons. The bar is doing something that the west doesn’t want you to do. Foreign governments may as well just admit there is one global world order and let their citizens start paying formal taxes to the usa directly.

Wait, are you saying the US has taxes?

Anyway yes, there is a global world order, the United Nations, a bloc of 193 countries focused on maintaining peace and security. It felt like a toothless tiger throughout its existence though, but I'm not very well versed in international / global politics.

Well if they didn't want their economy get shafted, maybe they shouldn't have invaded another country unprovoked?

Also, it's a two way street; China maintains dollar reserves, but the US has a $1 trillion debt with China [0]. If there was a conflict, or if the US refused to pay back those loans, their credit rating would drop and they would no longer be able to borrow more money. And if the US cannot borrow money, it will soon enter a state of shutdown - it's spending a lot more than it's earning (it has a budget deficit of $3 trillion [1]).

Holding money and debts is a means of mutual control, a force to maintain good relationships, standings, and peace. This is one reason why China is holding a fairly neutral stance; they're not cutting off Russia, but they're not pissing off the other countries either by e.g. providing military or financial aid to Russia.

[0] https://www.investopedia.com/articles/markets-economy/090616...

[1] https://www.cbo.gov/topics/budget

Well there is a conflict and the us is refusing to allow Russia to trade in its debt. Credit rating should suffer now right ?

I recognize the dollar is actually up this weekend. But either the usa literally already has Russia and China as puppet states, or it’s credit should suffer.

> Why would foreign governments such as China maintain dollar reserves now?

A. Extremely high liquidity

B. Backed by a relatively stable legal and financial system

> Weaponizing russian central bank dollar reserves was not a good idea for sanctions. It’s hacking your own foot and the branch it stands on. Why would foreign governments such as China maintain dollar reserves now ?

It seems like this is the kind of thinking Putin was counting on: having the West hold back from using their effective weapons out of fear of "using them up," until those weapons become rusty and useless.

Who is on the selling side of this volume? Who would want rubles right now?

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