Cryptocurrencies are being used more and more because people are increasingly turning to them in countries that have restrictions on the flow of capital

21 june 2017 | Kommersant FM

The exchange rates of major cryptocurrencies are beginning to recover after a sharp collapse. Last week saw bitcoin fall by 25 %. It lost a total of 8 billion dollars of market value. A bit earlier the bitcoin exchange rate had for the first time reached $3,000 per bitcoin. Ethereum, the second most popular cryptocurrency, went past the historic milestone of $300 at about the same time.

Yuri Ammosov
Yuri Ammosov
Adviser to Head of the Analytical Center

"And it has to be said that since cryptocurrencies are a fairly new phenomenon, seeing how bitcoin only appeared in 2009, we don't really know yet what specific criteria affect their exchange rate. However, there are a couple of factors that could be mentioned. For example, the sharp increase in the value of cryptocurrencies we've been seeing lately has at least in part been a result of people using them more and more in countries that have restrictions on the flow of capital. Digital technologies have essentially enabled them to make cross-border payments and to simply move their wealth abroad," the Analytical Center expert Yuri Ammosov commented on the situation on Kommersant FM radio.

According to the expert, spring is the time when not just the exchange rates for the main currencies are on the rise, but when secondary currencies increase in value as well. "This has to do with the fact that they are now in demand among people who believe in the future of financial technologies. In addition, there's always enough interest in the market in ways to move capital between countries and to use grey schemes," Mr. Ammosov explained.

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