Russia

Bitcoin: Russia’s Powerful Weapon in Global Trade

Forecasting a Spectacular Surge to $135,000 in 2025!

Bitcoin: A Tool to Counter Sanctions

Western economic sanctions against Russia have forced the country to reassess its financial policies and find tools to mitigate the impact of these restrictions on its economy. In this process, Bitcoin, due to its unique characteristics—such as decentralization, untraceable transactions, and independence from traditional financial systems—has become one of Russia’s primary instruments.

Evgeny Shato, a financial analyst and partner at Capital Lab, describes Bitcoin as a “shield against sanctions” and emphasizes that this cryptocurrency not only enables Russia’s cross-border trade but is also immune to Western financial oversight and intervention.

Olga Samofalova, a renowned Russian writer, has referred to Bitcoin as a “super currency” and stated that it allows Russia to make international payments without fear of sanctions. In an article for RIA Novosti, Samofalova wrote:

“While the digital ruble remains under the control of the central bank and may be vulnerable to sanctions, Bitcoin, due to its independent nature, is not tied to the Russian central bank or any other central bank. This makes it a unique tool for untraceable trade.”

Unlike fiat currencies, Bitcoin operates outside the reach of the global financial system, making it an ideal means for sanction-proof trade. Bitcoin allows not only governments but also private Russian companies to engage in global trade without reliance on the U.S. dollar and Western-controlled financial systems.

Bitcoin Price Outlook for 2025

Evgeny Shato predicts that Bitcoin could reach a value of $135,000 by mid-2025. The reasons for this forecast are summarized as follows:

Increasing Global Adoption of Bitcoin:
With the expansion of Bitcoin’s use in international payments and institutional investments, demand for this digital currency is continuously rising.

Reduction in Bitcoin Supply Due to Halving:
Bitcoin’s 2024 halving will reduce mining rewards, thereby decreasing supply, which typically leads to price increases.

Market Shift Toward Altcoins:
Shato also predicts that Bitcoin’s dominance in the cryptocurrency market may decline from the current 57% to 40%, similar to what happened in 2017 and 2021. However, Bitcoin’s price is expected to continue rising as investors seek to preserve the value of their assets.

Bitcoin in Russia’s International Trade

Russia is utilizing Bitcoin not only as an investment asset but also as a tool for international trade. In 2024, the Russian government passed new laws to legalize international payments using cryptocurrencies. This move allows Russian companies to bypass the constraints of traditional financial systems using Bitcoin. Anton Siluanov, Russia’s Minister of Finance, has emphasized that the country is changing its foreign trade rules and using Bitcoin and other cryptocurrencies for international payments. According to him, these transactions are part of a pilot system that is expected to expand in the future.

Samofalova compares Bitcoin to oil exports, stating that just as oil tankers evade sanctions by turning off their transponders, Bitcoin enables untraceable transactions.

Vladimir Putin, the President of Russia, has identified Bitcoin as one of the key assets for countering Western financial influence and believes that this cryptocurrency provides Russia with greater independence in economic decision-making.

The Growth of Bitcoin Mining in Russia

Russia is rapidly becoming one of the largest players in the Bitcoin mining industry. It is expected that within the next two to three years, Russia will surpass the U.S. to become the world’s largest Bitcoin mining power.

Major Russian companies such as BitRiver, with legal support, are expanding their infrastructure to dominate the global mining market. Founded in 2017 and headquartered in Irkutsk, Russia, BitRiver specializes in providing cryptocurrency mining services. It is Russia’s largest data center provider for Bitcoin mining and has become a key player in the global crypto mining industry due to its use of cheap and sustainable energy, including hydroelectric power.

The Impact of Sanctions and the Beginning of a New Financial Era

The freezing of $300 billion in Russian foreign reserves by Western countries was a wake-up call for nations dependent on the dollar-based financial system. However, rather than isolating Russia, this move accelerated the process of de-dollarization among Global South countries.

With its decentralized architecture, Bitcoin has become a financial lifeline for countries seeking to break the dollar’s financial monopoly.

Bitcoin’s Future in Russia’s Financial Strategy

Russia is looking to expand the use of cryptocurrencies in both its domestic and international economies. With support from high-ranking officials and increasing corporate adoption of Bitcoin, it is expected that this digital currency will play a significant role in the country’s long-term economic strategies.

Additionally, given the rising global demand for Bitcoin and its decreasing supply, it appears that Russia can leverage this cryptocurrency as a strategic asset to strengthen its position in global trade.

Conclusion

Bitcoin: The “Super Currency” of the Future

Russia’s move toward Bitcoin signifies a fundamental shift in the rules of global economic engagement. While fiat currencies like the dollar and euro face economic challenges, Bitcoin, with its decentralized nature and high security, is poised to play a crucial role in the future of finance. The prediction of a $135,000 valuation in 2025 suggests that this cryptocurrency will remain one of the most profitable digital assets.

By using Bitcoin as a tool for international trade and sanction evasion, Russia has demonstrated that this digital currency can play a vital role in shaping the future of global finance.

Sources:

https://cryptonews.com/news/russian-experts-bitcoin-may-hit-135k-in-2025-and-become-moscows-super-currency/#:~:text=A%20Russian%20expert%20claimed%20that,report%20from%20the%20newspaper%20Izvestia.

https://www.reuters.com/markets/currencies/russia-is-using-bitcoin-foreign-trade-finance-minister-says-2024-12-25

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