It’s that time again: banks are bashing Bitcoin. This time at the front: the Bank of Russia.
“You enter a minefield”
With Bitcoin’s sustained price increases, representatives of large credit institutions are again reporting to advise against investing in BTC. Say the least. The youngest concern about this is Sergey Shvetsov, a member of the Board of Directors of the Bank of Russia. He warns investors about Bitcoin and advises to stay away from it, as reported by the crypto publication CryptoPotato.com. Then: Shvetsov considers a corresponding investment to be “very risky” – so risky that he compares buying Bitcoin to entering a minefield.
“When you buy Bitcoin, you step into a minefield that you cannot rely on and no one can protect you. You don’t have to go where you are not protected by the Russian Federation, where your money is simply taken away from you and there is nothing you can do about it. “
Bitcoin is rather a “technological pyramid scheme” against which the Russian Federation can do nothing. People were at risk of losing their money:
“We’re closing websites, banks are stopping payments. But there are other channels that pop up very quickly that a person cannot be helped through. For example, if he has an account with Bitcoins and the pyramid scheme collects Bitcoins. “
The state cannot help here, as there is “no possibility [gibt]to block the transfer from his account to the Bitcoin pyramid scheme, ”said Shvetsov. It is precisely this uncensibility that is so special about Bitcoin for many investors.
Nevertheless, Russia is not denying technological development: according to Shvetsov, the bank is ready to deal with digital assets. However, this would be issued by Russian companies. Either way, Russia is cooking 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 that have been specified by the government when they are put into operation.
Bitcoin and banks – a love-hate relationship
In this country, banks also like to warn of crypto currencies – and the alleged ruin that they see associated with an investment. Most of the time, however, one just digs up old prejudices that have in the meantime been refuted several times. Uwe Burkert, for example, chief economist at Landesbank Baden-Württemberg, says:
“Bitcoin price gains are not at all sustainable.”
He also warns private investors: The Bitcoin rate is extremely volatile. He could continue to crash at any time, said Burkert in an interview with Sparkasse.de. Investors should expect “to lose their entire investment in a very short time”.
Corresponding crash worries, however, contrast with the thoroughly optimistic forecasts of numerous other credit institutions. In a study (“Imagine 2030”), Deutsche Bank analyst Jim Reid, for example, expresses himself positively about the future of Bitcoin and Co. He believes that cryptocurrencies could overtake the current financial system in around ten years. Reid is certain: Bitcoin has the potential to replace fiat currencies.
The analyst in his report:
“For the current fiat system to survive for so long, it took a random series of global forces over decades to create significant natural, compensatory, disinflationary forces.”
And the occasional bitcoin bashing may also have played its part. The number 1 crypto currency has meanwhile been confronted with slight losses within the last 24 hours: BTC had to lose around 4% and is currently trading at 45,700, again below the local highs of 47,300 dollars that were reached yesterday evening.
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