We recently caught up with Ben Caselin — Head of Research & Strategy at AAX to talk about Bitcoin and the crypto market in general amid the escalation of the ongoing Russo-Ukrainian war. We asked Caselin a few questions and here’s what he said.
Q: Ben, we are glad to learn that you are associated with AAX. Before we dive into the current global situation and Bitcoin’s role, can you please provide some information about your company?
Ben:It is true. I am the Head of Research & Strategy at AAX. AAX, one of the most popular cryptocurrency exchanges in the world. It holds the distinction of being the first one to be powered by London Stock Exchange Group’s LSEG Technology. Users can trade popular cryptocurrency assets on AAX. They also have the option to open crypto savings accounts that earn interest and use DeFi products. A AAX Launchpad is also available, which helps promising new projects to raise capital by selling tokens. We support more than 100 pairs of crypto-tocrypto spot traders and provide high leverage for BTC or ETH futures products.
Q: We would love to know more about your life.
Ben:My background includes social research, creative arts and fintech. As head of strategy and research, I have deep involvement in the development of insights about Bitcoin and DeFi and provide strategic direction for AAX’s growth and expansion. Apart from AAX I’m also a member of Global Digital Finance (GDF), a prominent industry group dedicated to accelerating digital finance adoption and growth.
Q: Thanks Ben. The world currently faces an uncertain future as the war between Ukraine and the Russian Federation rages. What do you believe Bitcoin will do in the face of all these uncertainties?
Ben:This is an alarming development. However, the one positive thing to come out of this entire situation is a clear picture of Bitcoin’s position in the global financial ecosystem as a safe-haven asset. My opinion is that Bitcoin, like other crypto assets, will show such resilience through the conflict.
Q: Can you please elaborate on Bitcoin’s role as a safe-haven asset in the present scenario?
Ben: If there is any doubt left around Bitcoin’s status as a safe-haven asset, the past few days should remind us that in the face of war, currency devaluation, or significant disruption to legacy infrastructure, Bitcoin is the safe-haven asset of choice.
With the Russian Ruble losing more than 30% of its value overnight, following sanctions imposed over the weekend, we’ve seen a significant surge in trade volume on BTC/RUB markets. This is not speculation – these are bitcoin purchases by everyday people as well as large allocations intended for the purpose of wealth preservation.
Ukraine also has a lot of demand. In what amounts to a worldwide show of support, donations in Bitcoin, Ethereum and Polkadot go directly to the Ukrainian government. Many stories tell about refugees who use crypto to hold their assets and transfer their money across border borders.
This is yet another example of how Bitcoin goes beyond being an asset that can be used to generate portfolio allocations and return on investment. As the main driver for adoption, crypto is being seen as an economic lifeline during times of geopolitical chaos and economic distress.
Q: What about volatility with Bitcoin or other cryptocurrency?
Ben:Volatility is still a part of the crypto market. However, there will be continued adoption of Bitcoin and other larger protocol assets. But while crypto markets usually rise in unison, if fundamentals take precedence over hype, we should see more decoupling between various crypto markets – especially as the situation gets even more serious and the stakes are raised.
The rise of crypto and politics has made them more intertwined. Bitcoin is the currency that people use most. This should be compared with other digital networks that allow citizens to share information, mobilise resources and gain support.
Q: Your thoughts about Bitcoin and cryptocurrency trading are impacted by the current state of affairs?
Ben:The potential for volatility can be caused by the ongoing conflict escalating. Excessive trading is not advised, particularly if you are using leverage. Although turmoil and war may drive prices up, Bitcoin might see new highs in the coming year. However, this is not something to be optimistic about.
Ultimately Bitcoin’s uptake is as much a result of constructive adoption, as it is an expression of global distress, dismay, and discontent with the current state of world affairs.
Photo by Egor Myznik, Unsplash