Quote from: tygeade on Today at 05:55:24 AM

Quote from: shield132 on May 24, 2024, 10:40:40 AM

Cryptocurrencies are a drop in the ocean in terms of helping a country to overcome economic sanctions. You might seem curious but Russians aren't as sanctioned and limited as many think. Many countries buy products for Russia and deliver them, for example, Armenia buys 10000 Mercedes car, then Russia buys from Armenia and that's how Russia gets rid of sanctions. Also, as far as I know, many companies changed brand identity in Russia to bypass regulations and restrictions.
Sanctions are stupid to my mind, with or without cryptocurrencies, Russia can evade many of them. Btw cryptocurrency mining will be very cheap for Russia because electricity rates are very cheap and China is their neighbour.

I also hear that they go over it by using third nations instead. So Russia sells something to X nation, then X nation sells that to Germany, that way Germany still buys from Russia, the only difference is that X nation makes money in the middle instead. Makes things more expensive for Germany to buy, and makes things cheaper for Russia to sell, because that difference will go to X nation instead.

However, that still doesn't mean that sanctions work, it just doesn't work for either, not for Europe, not for Russia, both are still dealing with each other. When you combine all the ways sanctions are broken there isn't really all that much that still stays unused, it is trading and all nations are dealing with each other aside from maybe a few products.

Technical progress has already advanced so far that no specific country can no longer produce on its territory all the goods that it needs. This is especially true for states with a small territory. Therefore, thanks to the market economy and the development of ties between states, a kind of cooperation occurs between states, depending on their availability of natural resources, geographic location, degree of industrial development and a number of other factors.

But under the conditions of rather harsh sanctions that violate this actual division of labor, Russia has virtually no chance of development, especially in the field of advanced technologies, against which the sanctions are mainly directed. Russia is already doomed to technologically lag behind most developed countries, because sanctions will not be lifted in the short and even medium term, because the damage to Ukraine has been significant and the lifting of sanctions will most likely be made dependent on the degree of compensation for the damage caused, and Russia’s high ambition will not allow the Kremlin to agree on the proposed conditions for lifting sanctions.

Cryptocurrency also cannot save Russia in the current situation. The main buyers of its oil and gas, China and India, have a rather negative attitude towards cryptocurrency. In general, states are not interested in using cryptocurrency in international trade, primarily because they cannot control it, as well as because of the unpredictability and high price volatility of this market.