 ▲ Russia, Bitcoin (BTC) © |
A key figure leading the establishment of cryptocurrency regulation in Russia has drawn market attention by offering a pessimistic outlook, arguing that Bitcoin (BTC) lacks intrinsic value and will ultimately collapse.
According to DL News on February 9 (local time), Anatoly Aksakov, chairman of the Russian State Duma’s Financial Markets Committee, warned in an interview with Parlamentskaya Gazeta that Bitcoin’s price is likely to crash in the near future. He criticized cryptocurrencies as assets with no real backing, describing them as mere hype driven by people’s fascination with computers and opportunities to generate profits through connections to the power grid. In line with fundamental economic laws, he argued, Bitcoin is bound to fall sooner rather than later.
Aksakov’s remarks came as he agreed with analyses by Russian experts who believe Bitcoin will struggle to rise in the near term and could fall to around $40,000 next year. He pointed out that the cryptocurrency market is highly volatile and driven by numerous subjective issues rather than objective factors, making it difficult to generate profits even with professional expertise.
Interestingly, despite such pessimistic forecasts, the Russian government is accelerating efforts to institutionalize the cryptocurrency market. The size of Russia’s crypto market is currently estimated to exceed $13 billion, and Aksakov is drafting a new bill aimed at fostering legitimate mining companies. The bill seeks to legalize the industry only for companies that comply with regulations and to allow banks to provide cryptocurrency trading services to customers.
By contrast, illegal activities are expected to face strict penalties. The new legislation includes provisions to punish illegal mining and cryptocurrency distribution, and Russia’s Ministry of Justice has proposed imposing prison sentences on illegal miners who fail to pay taxes on their income.
Meanwhile, under a law enacted in 2024, Russian citizens are permitted to mine cryptocurrencies freely as long as their monthly electricity consumption does not exceed 6,000 kilowatt-hours (kWh). However, mining has been completely banned until 2031 in certain regions experiencing power shortages.
According to CoinMarketCap, Bitcoin was trading at $70,182 at the time of reporting.
Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on this information. The content should be interpreted solely for informational purposes.