Ether for settlement – Newspaper Kommersant No. 236 (7437) dated 12/20/2022

According to Bitbanker and Cupli Surveys, Russians are investing little in cryptocurrencies this year, preferring the well-known bitcoin and ether. Often they are used not only as a means of accumulation and investment, but also for settlements – against the backdrop of high tariffs for cross-border transfers of Russian banks and blocking operations with Russian cards abroad. Contributes to the popularity of cryptocurrencies and the anonymity of transactions with them. However, experts say, in general, the market is still “in its infancy.”

According to a survey released in mid-December by Bitbanker (a Russian service for buying and selling cryptocurrency) and Cupli Surveys, 78% of Russian cryptocurrencies consider bitcoin the most reliable digital currency. Approximately equally, they evaluate the reliability of Tether (USDT, 36%, pegged to the dollar) and Etherium (35%). More than 1.5 thousand people over 18 years of age throughout Russia took part in the survey. In general, this coincides with the preference of investors around the world. According to Coinmarketcap, these cryptocurrencies are among the top three in terms of capitalization in the world – bitcoin (about 40%), ether (about 18%), Tether (8%).

The choice of bitcoin is obvious, market participants believe, it is the oldest and largest currency in terms of capitalization. Back in 2020, it accounted for 60–70% of the market capitalization, many organizations accept it for payment, and institutional investors bought it. According to the founder and CEO of Letit Rustam Burkeev, Ethereum opens up good opportunities for earning on investments in the long term. The stablecoin Tether helps to bypass the currency restrictions that the Russians faced in 2022, the expert notes. Including with its help “it is convenient to transfer assets abroad.”

The most popular way to use cryptocurrencies is to store funds (48% of respondents noted). At the same time, a significant part of the owners have small investments. So, less than 100 thousand rubles. 56% of respondents had, almost a third (32%) of respondents kept about 500 thousand rubles in cryptocurrency. Savings up to 1 million rubles. only 10% had, and only 2% had more than 1 million rubles in cryptocurrency. As ENCRY Foundation co-founder Roman Nekrasov explains, most people do not want any special control over their money, because this inevitably leads to increased responsibility for their capital. “Banks have an insurance amount, which now more than covers the average deposit in the event of a bank’s license being revoked,” he notes.

At the same time, a significant number of respondents (45%) are going to make money on cryptocurrencies. At the same time, cryptocurrencies are a highly volatile instrument, market participants emphasize. Since the beginning of 2022, the quotes of the two leading cryptocurrencies have more than halved. At the same time, says Rustam Burkeev, the pressure of regulators and the risks of the collapse of large crypto projects make many market participants doubt the potential for further growth of BTC. As Roman Nekrasov clarifies, the crypto market is now “in a bearish cycle, and only professionals who know how to make the right investments, build an investment portfolio, trade, short, and so on can get a quick profit under such conditions.”

Therefore, quite often cryptocurrencies are used to transfer money to their accounts (35%) and to the accounts of other people (27%). According to the survey, the most common reason for transferring funds to the accounts of other people living abroad is that Russian cards are blocked there (73%). Other reasons are payment for goods and services (50%) and complete anonymity (41%). The main popularizers of cryptocurrency today are regulators with their inefficient management of the financial market and restrictions, Mr. Burkeev believes. The dollar and euro turned out to be the currencies of unfriendly countries, as a result, the Russians faced huge banking fees for their storage and transfers abroad. “As a result, many paid attention to USDT,” notes Rustam Burkeev.

The cryptocurrency market is still in its infancy. “Many people don’t know how to use crypto, how to buy it, what it is for,” says MarsDAO founder Vladislav Utushkin. In addition, Mr. Burkeev adds, the lack of a full-fledged legal framework for cryptocurrencies in the Russian Federation plays a role: many citizens are afraid to risk investing more money in an unregulated asset.

Ksenia Kulikova