In the United States, cryptocurrency like Bitcoin and Ethereum is the regular currency. The citizens of cryptocurrency trade it likes the standard home currency for different transactions because it has a bunch of merits. So people are using it as an everyday currency on Bitcoin Profit to exchange goods and services. But the president of Russia said that Bitcoin crypto has value, but it is too early to trade oil.
Who is Vladimir Putin?
Vladimir Putin was prime minister from 1999 to the year 2000, and after a gap of five years, he again became prime minister from 2005 to 2012 in Russia, but now he has been the president of this economy since 2012. Before becoming the prime minister of Russia, he served as the secretary of the security council and director of FSB (Federal Security Services).
The thought of Putin on federal services
According to the Putin, the crypto has more value which means you can use it for doing different functions mentioned below:-
- Investing – Holding bitcoin for profit for a long time
- Trading – Holding bitcoin for profit for a short time
- Mining – validating the blocks for the smooth function by using internal and external resources
- Sending – Sending the bitcoins to another wallet
- Receiving – Receiving the bitcoins in your wallet
- Buying – Purchasing bitcoins for your personal use
- Selling – Selling bitcoins for any purpose
- Consulting – Earning money by teaching other people about the bitcoin cryptocurrency.
- Online shopping – Using bitcoin for purchasing online goods and services.
- Offline shopping – Using bitcoin for in-store goods and services.
So is, the unique side of bitcoin makes it different from the other crypto coins, especially from the home currency. Putin says that bitcoin has more value than fiat currency because it has multiple uses.
Someone asked the president of Russia if he could use the bitcoin crypto coin to exchange oil trading; he replied that it was too early to say that he could use bitcoin to trade oil. Because it is just a medium of exchange and the U.S. dollar is preferable in the oil trading because the U.S. government is putting a penalty on the oil trading.
The deputy prime minister of Russia said that if the U.S. government continues to impose the penalty on oil trading, it will become challenging to trade oil in U.S. dollars. So they would have to remove the currency. So the Russian president was again asked by someone if the penalty would continue to impose and there would be no chance the U.S. dollar will use for trading, so could bitcoin remove the dollars for oil trading? Then Putting again said that Bitcoin has value, but I do not think that it would use for oil trading; it is too early to say it.
Mining advantage to Russia
In his previous talk, the president of Russia said that he has the advantage in bitcoin mining because we can bear the electricity used for computational power. When the central bank of Russia proposed to ban bitcoin because of the waste of power supply in solving bitcoin blocks, the president prevented it by saying that we have an advantage in mining because of the high energy resources that will also help our economy to grow. When the income starts coming into a nation from the other countries, then the GDP growth of the nation starts increasing. So many people will think about how income from other countries will come through the bitcoin mining process; well, other countries mean generating income outside the country rather than inside the country since bitcoin is the global currency. Thus, earning from this currency will also be known as income from the other country using some resources.
So the president of Russia encouraged bitcoin miners to set up mining plants so they could make money from the mining, and there is no shortage of electricity. He wants to make Russia a crypto mining hub, and when more miners join that, Russia will get the third rank in the bitcoin mining process.
So crypto has more value than the home currency, and the president of Russia said in clear words, but he also said that the U.S. would not use it for oil trading because of the targeting penalty on trading oil. He also said that there is a significant advantage to validating the blocks and producing bitcoins using electricity, and it will rank third in Bitcoin mining.