“Cryptocurrency will become an alternative to traditional assets” – advisor to Waves Exchange


  • Cryptocurrency will become an alternative investment instrument

  • Investing in deposits has become unprofitable

  • Russians will withdraw money abroad if they do not find an effective investment tool

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The difficult economic situation in Russia is forcing the government to take unpopular measures, such as lowering the interest rate. Thus, the management plans to stimulate business and the population to take out loans. But the flip side of this decision is a decrease in interest rates on deposits and the outflow of depositors’ funds from banks. What assets will Russians invest in and whether there is a chance for cryptocurrencies to become a “safe haven” in the post-pandemic period, BeInCrypto asked Ioann Voronin, Waves Exchange advisor and product consultant..


– How the reduction in rates on bank deposits in Russia will affect the interest in cryptocurrencies?

I.V .: The decline carried out by the Central Bank was the most significant in the entire modern history of Russia. After all, the key rate was lowered by one percentage point – to 4.5% per annum. The reasons for this decline are fairly obvious. We are now in a difficult economic situation after the lifting of quarantine measures and the economy needs urgent infusions of funds to revive the business. Of course, this approach to incentives will be seen as a signal not only for businesses, but also for individuals who keep their funds in bank deposits and are content with interest income. Now is not the time when economic difficulties can be ignored, and banks are making it clear that it is not profitable for them to sponsor deposits. In such a situation, modern, new generation investors will automatically consider other types of investments..

In a post-pandemic world, starting a business is extremely risky. It is unclear how the economy will react to the atrophy of such traditionally profitable areas as the restaurant business in the coming year. In an atmosphere of instability, cryptocurrencies, especially those already formed and based on regulated platforms that are subject to international supervisory authorities, are becoming an alternative to traditional assets. Oddly enough, but the risks to financial stability associated with the situation in the global financial markets have recently decreased, and this has a favorable effect on the rates of many key currencies. Of course, the cryptocurrency market continues to be volatile. But this is its appeal..

Interest in cryptocurrencies began to rise. This is evident from the growth in the inflow of new users to trading platforms. People understand that trading is not that risky and risky when we compare the profitability of trading cryptocurrencies and the risks associated with this kind of activity. This is especially noticeable against the background of falling incomes of millions of residents of our country. In such conditions, the relatively stable position of cryptocurrencies as savings funds that can generate income becomes very profitable.

Do not forget that cryptocurrencies have not stood still in recent years. They have acquired a completely new status as regulated alternative assets with real application as payment instruments. In addition, the blockchain technology has also changed, evolved in order to harmoniously link cryptocurrencies and methods of their use to generate passive income. And this is a very attractive alternative against the background of falling rates of major currencies, especially the dollar and euro, which are losing their global dominance positions before our very eyes..

– What cryptocurrencies will Russians invest in??

 I.V .: Russians are a very technologically advanced and knowledgeable audience that is courted by all major cryptocurrencies and exchanges. Our compatriots have always had a weakness for innovation and at the same time relied on established cryptocurrencies such as Bitcoin, Ethereum, Dash and others. The throne let us down, but it was very predictable and only strengthened the positions of the main market players.

However, the cryptocurrency market is not alone in Bitcoin. It has stablecoins and a huge number of other equally successful coins, which can not only be traded with good profitability, but also be used in other ways. In the same way that currencies are put into deposits, cryptocurrencies can be put into deposits, called stakes, and thus generate income from them. Ethereum’s move to the 2.0 platform has only strengthened the staking trend, as it has proven to be the most profitable and technologically viable. Instead of trying in vain to mine coins, knowing in advance that most mining pools already have an overwhelming advantage in computing power, you can stake your assets, and thus help the blockchain network develop, receiving income proportional to the contribution..

This is a very fair and technologically correct approach, since it does not require huge energy costs from small miners, who barely cover their costs at all. Staking becomes all the more attractive given that there are assets like USD Neutrino that can generate up to 15% of annual income per stake on the WAVES.Exchange platform. No bank can provide such numbers. Also on Waves, you can buy cryptocurrency from a card without commissions, while most exchanges take 3-5%. This is a huge plus for switching to cryptocurrency deposits. And this despite the fact that all stakes are maximally protected from hacker attacks by means of modern security systems that are used on staking platforms.


– How interesting are cryptocurrencies to Russian investors in the current economic realities?

I.V .: Investors have many more sources of information on the state of the market, the economy in general and new opportunities than ordinary people who keep their savings on deposits in banks. This is the work of an investor; and Russian investors are among the most progressive in terms of investments in information technology and digital assets. The performance of cryptocurrencies has been tested over the years, especially when compared to traditional assets such as gold and stocks of global companies – oil and others, whose business has not been doing well in recent months. Everyone is always looking for stability and profitability. Cryptocurrencies now provide many opportunities to make money on them. Russian investors are in a waiting mode, when and in which assets it will be possible to invest the most profitable after the release of the Ethereum 2.0 platform.

The adoption of laws in the Russian Federation (we are talking about the draft law “On digital financial assets”) is never quick and unexpected. Investors are well aware that sooner or later they will have to pay taxes on their income. And the Russian economy and its regulators are realizing that it is better to provide preferential terms than to watch how domestic investors withdraw funds abroad. Therefore, the adoption of this bill will have a beneficial effect on the critical currency market in Russia..

– Thanks for the conversation!


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