One famous Russian bitcoin critic, Anatoly Aksakov, from the State Duma, said that global jurisdictions should ban bitcoin as a method of payment. The Duma member reiterated his negative stand on Bitcoin moments after the crypto managed to retest the $40,000 level briefly on January 14.
While speaking to TASS local news agency, Aksakov said that BTC is not backed by anything tangible. Therefore, he is convinced that the bitcoin bubble is about to burst soon:
“Bitcoin is not backed by anything as a cryptocurrency. This is a private currency, and its value is based on the trust of the related data system. In this context, Bitcoin provides a basis for a bubble on the crypto market, and I think this bubble should burst sooner or later.”
Aksakov also urged authorities to issue strict regulations on bitcoin and said that global jurisdictions must ban the crypto as a payment method. Russia banned crypto-powered payments from January 1, 2021. The bitcoin critic added:
“It is necessary to cut off all channels for using Bitcoin to finance drug trafficking, terrorist operations, money laundering, corruption schemes, and so on. Bitcoin is the mother of blockchain. Blockchain technology has existed for a long time, but thanks to Bitcoin it became popular and is now widely used.”
The Russian Duma member is not alone in thinking that BTC is a bubble. The chief investment strategist at Bank of America Securities, Michael Hartnett, argued that Bitcoin appears to be “the mother of all bubbles” in early January 2021.
Based on previous reports, Aksakov emerged as one of the major bitcoin critics of 2021. He is confident that bitcoin does not have a future and that cryptocurrency payments would destroy the global financial system.
After bitcoin surged towards $42,000 earlier this month, many global authorities expressed criticism of the world’s biggest crypto. Christine Lagarde, the European Central Bank President said on January 13 that BTC is a ‘funny business’ and a ‘highly speculative asset’ contributing to money laundering.