Anatoly Aksakov, Member of the State Duma of Russia, reiterated its negative stance on Bitcoin (BTC) Shortly afterwards, the cryptocurrency briefly reached USD 40,000 again on January 14th.
In an interview with the local news agency TASS, Aksakov argued that Bitcoin is not supported by anything and therefore the Bitcoin bubble will burst sooner or later:
“Bitcoin is not supported by cryptocurrency. This is a private currency and its value is based on the trust of the associated data system. In this regard, Bitcoin provides a foundation for a bubble in the cryptocurrency market, and I think that bubble should burst sooner or later. “
Aksakov also called for strict regulations on bitcoinThis suggests that global jurisdictions should likely ban it as a payment method. Russia has already banned cryptocurrency-based payments as of January 1, 2021.
Aksakov stated: “It is necessary to block all channels in order to use Bitcoin to fund drug trafficking, terrorist operations, money laundering, corruption programs, etc.”
Aksakov noticed that too Bitcoin is “the mother of the blockchain”. “Blockchain technology has been around for a long time, but thanks to Bitcoin it became popular and is now widely used,” he said.
Aksakov is not alone in arguing that Bitcoin is a bubble. Michael Hartnett, Chief Investment Strategist at Bank of America Securities, argued in early January 2021 that Bitcoin appears to be “the mother of all bubbles”.
As previously reported by Cointelegraph, Aksakov became one of Bitcoin’s biggest critics in 2020. Trust that Bitcoin “has no future” and the Cryptocurrency payments would destroy the global financial system.
After Bitcoin’s massive rally that pushed the price to $ 42,000 in January, Several world authorities have voiced criticism of the major cryptocurrency. The President of the European Central Bank, Christine Lagarde, argued on January 13th that Bitcoin was a “highly speculative good” and a “strange deal” that contributes to money laundering.