Russian President believes that cryptocurrencies can be useful, except to trade oil

The success of cryptocurrencies in recent years has shaken everyone. Different entities have gone about addressing this incredible success in different ways. Investors and traders have generally been happy with how the current market is getting the success and acclaim that it deserves, and it will also make their investments more profitable.

Companies have also been very optimistic about this newfound success, especially since it means that more customers will have more disposable income. All they had to do was start accepting cryptocurrency as a payment method and they were ready for the new change. Granted, this was a fairly risky move, given that cryptocurrencies can fluctuate a lot.

Financial institutes have had the most varied response, with many like the JP Morgan CEO still not willing to accept the force that cryptocurrencies have become the market. Instead, they still deem it worthless and believe that they should not have a seat at the table of financial markets. However, other institutional companies have been very generous towards crypto, believing that it is the best way to go about financial institutions in the future.

Finally, countries around the world have reacted very differently to the rise in the popularity of cryptocurrencies. Some have moved to accept it, like El Salvador, whereas others have chosen to ban it and everything surrounding it, like China. But then there are countries like Russia, which have been on the fence about cryptocurrencies. The Russian government believes that cryptocurrencies have their place, just not in the country. And now the president of the motherland has said that cryptocurrencies can be useful, except for trading in oil.

The president said that due to the high energy consumption of cryptocurrencies, using them to pay for oil seems pointless. And this is where Vladamir Putin does seem to have a point. The carbon footprint of cryptocurrencies and its overall energy consumption is a very serious concern.

The Kremlin Leader further continued that nothing actually supports cryptocurrencies in terms of their value. Therefore, it is still very early to say if cryptocurrencies will be useful in trading oil. But the current prices for cryptocurrencies could change the leader’s mind on trades with cryptocurrencies.

On the other hand, the point that he makes about crypto mining having a large carbon footprint is only true when the country it is in is producing electricity through non-renewable means. So if a country were to be producing cryptocurrencies through renewable means, cryptocurrencies will be able to completely go green and become much more sustainable. Furthermore, the most popular place in the world to mine cryptocurrencies are countries with cheaper electricity.

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