When bitcoin’s bubble bursts, Ukraine will be the first to suffer
International company Citibank is concerned with the skyrocketing growth of bitcoin’s influence on the global economy. Citibank experts assure that bitcoin is a bubble which burst would hit the economy of developing countries first of all including Ukraine. The bigger the bubble is, the more severe consequences will be entailed.
Why might the bubble burst?
Bitcoin’s possible devaluation is be explained by many factors. They can be either governmental ban on bitcoin payments or massive expenses on cryptocurrency mining, cyber security issues, bitcoin’s volatility, shadow economy, cryptocurrency vulnerability.
Who else will suffer consequences and why?
If the bubble blows out, bitcoin’s price will fall to zero, which would damage a range of countries where bitcoin market-GDP ratio is the highest. Russia takes the first place in this list (5%), the second – New Zealand (less than 4%), the third – Nigeria (about 3.5%), the fourth – Ukraine (2.5%).
According to the experts, cryptocurrency accumulation depends on the country’s shadow economy: the more place shadow economy takes, the more cryptocurrency market thrives. By the way, the international bank experts showed warm welcome to blockchain that can be effectively applied on the globe.