russiaThe Russian Ruble continues its tumble against the US Dollar, losing over 50% of its value in 2014, and more than 11% on Tuesday alone. This one-day loss was the biggest in over 15 years. These issues has led to many well-to-do Russians investing in the future of Bitcoin over their fiat currency to stem the losses the Russian Central Banking system seems at a loss to curtail.

Oddly, given the endorsement and implementation of Bitcoin by Microsoft last week and these latest developments, Bitcoin is also down in recent trading. Down from a high of $359 on December 11th to $317 USD currently.

Also read: Russia Plans Bitcoin Ban by 2015

Spike in Rubles for BTC Transactions

Data from trusted data website bitcoincharts.com shows that transaction volumes of rubles for BTC trades spiked on Tuesday spiked to 819 from an average of 230 trades for the last 30-day period. That was almost a 250% increase in ruble transactions and was the highest such volume seen since December 2013. This is far from the only leading indicator, and sales on sites like LocalBitCoins.com should also be considered in any analysis.

These issues in Russia may also be adding to the recent bull-run on the US Dollar and other leading fiat currencies, according to Bobby Lee, CEO of BTC China, China’s leading Bitcoin exchange.


“The news coming out of Russia is indeed unparalleled. The high trading volumes with the ruble is to be expected, given the flight away from this struggling currency. Bitcoin is, therefore, a natural destination, as well as other strong central bank currencies.”

Let’s go back in time less than two years to March 25th, 2013. A small island nation of Cyprus, home to just over 1 million residents in the Meditteranean Sea. A place few in the West had ever heard of before then, ushered in the dawn of a new era. The Bank “Bail-In” Era. Call it a beta-test. Call it legalized theft. Call it a harbinger of wicked ruling class dealings to come. Another nation-state fiat currency collapse. That government/bankers vs. the citizenry financial fiasco was also an epic boon to the global Bitcoin market. Many who were unfortunate enough to have holdings in Cyprus (many overseas depositors looking for a mere tax haven from the Wicked West) dropped many Euros into Bitcoin. That in turn doubled Bitcoin’s value from under $65 on March 18th to over $130 by April 1st, with some seeing peaks of over $200 in this 2-week period back in 2013.

Some do not see a strong long-term correlation between the ruble falling and increased BTC volume, based on the now illegal nature of buying and using BTC as a Russian.

“I’d be surprised if Russians were turning to bitcoin in any meaningful way given the uncertainty over whether they could use it or store it without penalties in the future,” Bitnet’s Akif Khan told CNBC

Could this foreshadow another bull run on BTC to end 2014? Bitcoin has dropped about $60 in December and may be ready for a rebound of epic proportions if Russia can’t stem the Ruble losses. As soon as pundits start pounding their chest about the fall of Bitcoin, it has a proven history of furious comebacks.

What is obvious is the meteoric fall of the ruble and the recent Russian restrictions on Bitcoin purchasing is not some silly coincidence. Governments and banksters are ready, willing, and able to force their innocent citizens to ride out the fall of the nation’s fiat currency, by hook or crook, until the bitter end. They will bar the doors to protect their thiefdom, and any life preservers may end up only used by those who caused the economic turmoil. It’s business, nothing personal.

It’s best not to wait until the last minute to start investing in digital currency, like Bitcoin. Those who fail to learn from history may be doomed to repeat it.

What will Russia bankers do with the Ruble? How will they attack Bitcoin owners and investors? Is there another “bail-in” coming? Share above and comment below.

Images from Shutterstock.

Updated: December 18, 2014 at 5:53 am CET.

Join the free bitcoin trading competition and win 5 bitcoins + more here.

Your Ad Here?
  • moretosee

    well… if sunspots can wipe a bit that easily… how exactly can the banks save your money? :) currently your money is present mostly in that bit state that you are talking about… imagine if all the central bank servers lost all the data and the backups as well :)
    On the other hand there is bit coin… with the added bonus of not being manipulated to certain values every year :) it is a dynamic modifying currency
    For a computer scientist you don’t know a lot about computers :)

  • StumpLifter

    As a computer scientist I know that a bit has a transitory value that can change 100 million time a second and can easily be wiped out of existence by a marginal increase in sun spot activity. Anybody see a problem here?

  • http://extropolitca.blogspot.com Mirco Romanato

    I’m not very concerned about the ruble, because the move of the central bank of Russia to raise the interest rate from 6% to 16% is in the interest of making the ruble strong again.
    At these interest rate levels speculation in Russia can not thrive like in the western world.
    Savers are rewarded (about time) and capital formation can happen again and people can become more wealthy and productive.

    This is what is needed in Russia and everywhere.

  • https://www.facebook.com/Plo8swall Randall Mathews

    Bitcoin will smile in the face of adversity until it surrenders.. Mtgox didn’t kill it, Silkroad didn’t kill it and matter of fact it just gets stronger. Every time adversity appears, Bitcoin shows that it is here to stay. Dont let this lull in price fool you. It does this every time, just before it double and redoubles in value.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
    Einstein spoke of compound interest, as the most powerful force.
    When Nation’s take on debt, the central banking families, become owners of that nation. Russia is in danger, make no mistake

    But the bottom line is, that much like Cyprus, and soon like Russia, the stars line up to prop up Bitcoin.
    I say the stars line up, but what i really mean is : “Timing is everything”
    And Hugo said: “Nothing is more powerful than an idea whose time has come.”

    I am certain Bitcoin can help the citizens of Russia.. Putin is a multi-billionair, he aint gonna suffer, but the citizens will suffer.. and they will need bitcoin now more than ever before..
    Remember what Cyprus did to the value of Bitcoin when it fell below 65$/coin
    Cyprus is a pebble compared to Russia, if the Russian Citizens drive up demand for bitcoin, i see it easily bouncing to 500$/coin or 1000rubles/coin .. then i expect it will continue to go up quite a bit before it tops off then corrects down to a stable price..

    We need a bitcoin hero with stars in his eyes !! (The Who: “Pinball Wizard”)

  • silverdr

    Check the charts of exchanges dealing with RUR. TL;DR – Rouble goes slightly faster ;-)

  • Adam Hadi

    all fiat currency ;P

  • Mike

    dont know whats falling faster Rubles or Bitcoins.

  • Michael Juneau

    A worldwide economic slowdown combined with a natural retrace after BTC got way ahead of itself lands us here in the low 300s. I think the world is getting tired of the US exporting inflation and will soon put an end to the petrodollar. The hot money currently running to the dollar will have to go someplace and will end up in gold, silver and bitcoin. Forget the moon — When this happens Ill see you on Mars. The US will then need it’s own domestic dollar (to be called the treasury dollar) effectively shredding the credit card we’ve been enjoying. We will have to live within our means putting us in the same shoes as the Russians. Get ready.


About The Author

Google+

Evander Smart wants to get you talking, get you thinking, get you learning about Bitcoin, "The Future of Money". He has two Bitcoin video training courses on Udemy.com called "Bitcoin for Beginners". Go to EvanderSmart.com to get the latest on Evander and the latest Bitcoin news.