It’s time again: Banks bash Bitcoin. This time at the front: the Bank of Russia.
“You enter a minefield”
With Bitcoin’s continued price gains, representatives of large credit institutions are now again reporting to advise against investing in BTC. To say the least. Sergey Shvetsov, a member of the Board of Directors of the Bank of Russia, is the latest to raise concerns in this regard. He warns investors about Bitcoin and advises to stay away from it, according to the crypto publication CryptoPotato.com reported. Because: Shvetsov considers a corresponding investment “very risky” – so risky that he compares the purchase of bitcoin with entering a minefield.
“When you buy Bitcoin, you enter a minefield that you can’t rely on, and no one can protect you. You do not need to go where you are not protected by the Russian Federation, where the money is simply taken away from you and you can not do anything about it.”
Bitcoin is rather a “technological Ponzi scheme”, against which the Russian Federation can do nothing. People ran the risk of losing their money:
“We are causing the closure of sites, banks are stopping payments. But there are other channels that appear very quickly and in which a person can not be helped. For example, if he has an account with bitcoins and the pyramid scheme collects bitcoins.“
Here the state could not help, since there is “no possibility [gibt]to block the transfer from his account to the account of the Bitcoin Ponzi scheme, ” said Shvetsov” And it is precisely this uncensorability that is the special thing about Bitcoin for many investors.
Nevertheless, Russia does not deny technological development: according to Shvetsov, the bank is ready to engage in digital assets. But this would be spent by Russian companies. Either way, Russia cooks its own soup in many places. For example, since April 1, 2021, a new law also requires iPhones sold in Russia to offer the installation of Russian apps set by the government when they are put into operation.
Bitcoin and banks-a love-hate relationship
In this country, banks also like to warn against cryptocurrencies – and the alleged spoilage that they see associated with an investment. In most cases, however, one only digs out old prejudices, which have been refuted several times in the meantime. For example, Uwe Burkert, chief economist at Landesbank Baden-Württemberg, says:
“Bitcoin price gains are not at all unsustainable.“
He also warns retail investors: the Bitcoin price is extremely volatile. He could continue to crash at any time, Burkert said in an interview with Sparkasse.de. Investors should expect to “lose their entire investment in the shortest possible time”.
However, corresponding crash concerns are in contrast to the quite optimistic forecasts of numerous other credit institutions. Deutsche Bank analyst Jim Reid, for example, comments positively on the future of Bitcoin and Co in a study (“Imagine 2030”). In his opinion, cryptocurrencies could overtake the current financial system in around ten years. Reid is sure: Bitcoin has the potential to replace fiat currencies.
The analyst in his report:
“That the current fiat system has survived for so long required a random set of global forces over decades that have created significant natural, compensating, disinflationary forces.”
And occasional bitcoin bashing may also have played its part. The number 1 cryptocurrency, meanwhile, is facing slight losses over the past 24 hours: BTC has lost around 4% and is currently trading at 45,700 back below the local highs of 47,300 reached last night.
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