In a controversial statement, Anatoly Aksakov, the chairman of the State Duma”s Financial Markets Committee and a key figure behind Russia”s cryptocurrency regulations, has expressed a dire prediction for Bitcoin. According to Aksakov, Bitcoin “will collapse sooner or later,” reflecting a long-held skepticism toward cryptocurrencies.
Aksakov”s remarks were published in the Russian Parliament Gazette, where he addressed concerns from local experts regarding Bitcoin”s price trajectory. These experts have suggested that the cryptocurrency may struggle to maintain value in the near term, potentially falling to the $40,000 threshold next year. Aksakov”s cautious stance comes from his belief that Bitcoin lacks intrinsic value, asserting that the cryptocurrency is “actually based on nothing.”
He elaborated that the phenomenon surrounding cryptocurrencies has emerged from public interest in technology and speculative profit, labeling it as a “kind of hype.” Aksakov noted that, according to fundamental economic principles, such assets are bound to experience a downfall eventually.
Despite his pessimistic outlook on Bitcoin, the Russian government is moving forward with plans to regulate the cryptocurrency sector. Aksakov has indicated that he is currently drafting a new law aimed at Bitcoin mining, which seeks to formalize the mining industry for compliant companies. This proposed legislation will also introduce regulations for cryptocurrency exchanges and facilitate banks in offering trading services for digital assets.
The new framework intends to impose penalties for illegal mining and the unauthorized circulation of cryptocurrencies. Notably, last year the Russian Ministry of Justice suggested potential prison sentences for illegal miners who evade tax responsibilities on their profits.
Starting in 2024, a new law will permit Russian citizens to mine cryptocurrencies in most regions, provided their monthly electricity consumption remains under 6,000 kWh. However, certain areas experiencing energy shortages will prohibit mining activities until 2031.
Aksakov also highlighted the volatility of the cryptocurrency market, emphasizing that price fluctuations are often driven by “numerous subjective factors rather than objective ones.” He cautioned that for those seeking to profit, the cryptocurrency market may not be the most reliable avenue, as volatility remains unpredictable regardless of one”s expertise.
