Russia Slams Bitcoin Investing, Compares to Gambling

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November 12th, 2017
Back Russia Slams Bitcoin Investing, Compares to Gambling

In the midst of bitcoin euphoria reaching new heights by the minute, Russia's Economic Development Minister, Maksim Oreshkin, has made quite a contrary sentiment by stating that for unqualified people, bitcoin is “worse than casinos.”

2017 has been more than a breakthrough year for bitcoin: its value has skyrocketed and continues to break new ground each day (at the moment, one BTC was equivalent to $6367), the blockchain split that went on over the summer produced bitcoin cash and casinos and operators everywhere are racing to embrace BTC users everywhere by introducing the currency to their ranks. In short, the future of the digital currency looks as rosy as Marie Antoinette's bed chamber.

But, not everyone sees it that way. In fact, there are multiple opponents warning against the volatile nature of the bitcoin, foreseeing its demise as nothing short of catastrophic. JP Morgan and Tidjane Thiam, the CEO of Credit Suisse, are among more illustrious names that deem the cryptocurrency to be a form of FRAUD and the “very definition of a bubble”—and now, a re-emerging superpower's officials seem to adhere to these opinions.

During a discussion at the World Festival of Youth and Students in the city of Sochi, Maksim Oreshkin stated: “As for bitcoin, if you look at how the value of this asset fluctuates, it's dozens of percent up, then dozens of a percent down. An asset that can be available for an unqualified investor should not have such characteristics because it's worse than casinos. First, you earn, then you will lose everything and be left with nothing. Those who do not know how to manage risks in instruments with such volatility, should not be able to invest because in 99.9 percent of cases it results in losses for such people and then they will find themselves in a difficult life situation, which is not good."

Oreshkin advocates granting the rights for BTC trading to qualified investors only. As he went on to explain, that would make only those having at least 6 million rubles ($100,000) in their bank account eligible – also, they would need to have made at least 40 transactions per year with the same amount of turnover money. Back in August, despite working on regulated trading, Moscow Exchange representatives confessed to being skeptical about investments being public. “There is a point of view that cryptocurrencies like bitcoin are a financial pyramid, and it’s hard to argue with this point of view,” said Russia's Deputy Finance Minister, Aleksey Moiseev.

One could argue that this anti-bitcoin investment stance that looks to keep Russian citizens from buying may stem from the fact that the Russian government is actively working on the nation's official cryptocurrency – the CryptoRuble. This would make the country the first in the world to launch national cryptocurrency that is, according to reports, based on a blockchain, similar to bitcoin and Ethereum, with the government having complete control over it.

Do you agree with Russia minister's sentiments?

Source:

“Bitcoin is ‘Worse than Casinos’, Says Russia’s Economic Development Minister”, cryptocoinsnews.com, October 20, 2017.

“Russian government is actively working on the nation's official cryptocurrency”

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