For anyone thinking of promoting bitcoin as an investment, Russia might not be the ideal place to set up shop. According to the Russian Public Opinion Research Center (VTsIOM), around 65% of Russians consider bitcoin to be a “disadvantageous investment.”
While this could be attributed to bitcoin’s volatility, the finding is full of irony. To illustrate, a Russian who locked their savings in bitcoin in 2014 after the European Union and the U.S. imposed sanctions on Russia following the annexation of Crimea from Ukraine is better off compared to another who put his rubles in a bank.
On March 6, 2014, when the initial round of sanctions was imposed, bitcoin was trading at approximately $660. At the time, one U.S. dollar was equivalent to 36 rubles. Now the rubble has depreciated by roughly half while bitcoin has appreciated by nearly 1,000% in the last five years.