Russian Officials Agree To Bitcoin’s Potential But Warn Investors About Its Volatility
Russian state Duma agrees to fact that Bitcoin houses tremendous potential of advancement but that makes it all the more viable to market crashes. Recent market positivity has raced the price of this cryptocurrency to a record breaking scale of more than $7000. Starting from the beginning of the year, the price of Bitcoin has increased by seven times which has opened the floodgate for concerns regarding its inherent volatility. Since its origin in 2008, Bitcoin has now toppled over McDonald’s with its gigantic market capitalization.
Anatoly Aksakov, the Chairman of the State Duma Financial Market Committee recently stated during an interview conducted by RT that:
“It has not reached its growth limit; the pyramid has not yet inflated so much as to burst. It will be pumped more and more … The price could double or even triple, it may even rise to $20,000.” He feels that the crypto market is undergoing its dream bull run at present with further room for improvement.
He is hopeful of such price rise given “active discussions” concerning Bitcoin in global media following its ground-breaking price surge which is scripting success stories of investors by turning them into millionaires. This has caused Aksakov to state that Bitcoin is the perfect option for “hotheads” who are on the constant lookout to “jump into the deep end” of available investment opportunities. He feels that this extremely bullish phase is here to stay until “critical situation” crashes down the Bitcoin castle.
Sergey Zhigarev, the head of the State Duma Committee on Economic Policy, Industry, Innovative Development and Entrepreneurship asserted similar feelings during an interview conducted by Regnum. Just like many others, he described Bitcoin to be a bubble whose stability is highly questionable thus making it a highly risky affair to get involved into.
“Bitcoin can exceed $20,000, and even $40,000, or maybe tomorrow it will collapse to five dollars and one cent. There is nothing, no assets behind Bitcoin, it is only about speculative interest, so people who play with it play at their own peril,” he said.
Launch of Bitcoin Futures by CME Group, the world’s largest futures trading platform was recently announced and the trading may start by year end which could finally impart a legal tag to Bitcoins. The effect of this announcement on financial bodies is yet to be seen given that they have always viewed Bitcoins with utter suspicion since the very beginning.
Russia is amongst those many countries who have been trying hard to bring upon crypto regulation. Vladimir Putin, the Russian president directed at the same shortly after branding cryptocurrencies as risky. Russia has also revealed its plans to come up with its very own regulated cryptocurrency termed ‘CryptoRuble’.
However negative sentiments pertaining to the digital sphere keep haunting the dream run of Bitcoins. Scott Kelly, the CEO of Black Dog Venture Partners in Phoenix, Arizona recently told Forbes that, “a month before the real estate crash in 2007 in Arizona, my cab driver said he was getting into flipping real estate. Last week, my Uber driver said he just started trading Bitcoin.”
Bitcoin accounting for 61% of the entire cryptocurrency market is closely succeeded by Ethereum, Bitcoin cash and Ripple. Given a scenario that Bitcoin crashes, nothing can stop these alternative coins from claiming the numero uno spot.
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