Despite Bitcoin’s strong performance, Anatoly Aksakov believes it will soon fall back to Earth. Some crypto stalwarts have also expressed concern over the sustainability of Bitcoin’s recent performance.
Bitcoin’s rally has impressed some of the cryptocurrency’s most ardent critics so far. However, it would hardly be Bitcoin if the haters didn’t have something to say.
With Bitcoin, just a few thousand dollars from hitting its all-time high again, Anatoly Aksakov, a Russian State Duma member, has called on countries to outlaw it.
Strict Regulations and a Payment Ban
Recently, Aksakov sat down with local news source TASS for an interview where he continued to bash Bitcoin as an unregulated asset that needs to be outlawed.
In the interview, the lawmaker explained that Bitcoin’s lack of government backing means that nothing protects investors in the event of a crash.
The lawmaker added that if Bitcoin is to be allowed, governments should develop strict regulations on it. Still, the asset shouldn’t be allowed to operate as a payment method.
As Aksakov explained, Bitcoin remains a major channel for financing vices like money laundering and terrorist financing. Governments would be better off cutting channels for using it as a payment method due to their criminal ties.
Aksakov has been building his reputation as perhaps the most anti-crypto member of Russia’s parliament. He was a driving force behind the country’s decision to ban Bitcoin payments when the legislature approved its first crypto bill, “On Digital Financial Assets,” in July 2020.
At the time, he argued that legalizing crypto payments would essentially destroy Russia’s financial system.
The policymaker’s stance on the leading cryptocurrency is yet to change. Now, he sounds a note of warning to investors too. In part, he told TASS:
“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.”
Bitcoin Can’t Hold On for So Long
While Aksakov’s calls for a ban on Bitcoin payments are outlandish, his stance on the Bitcoin price is quite understandable. The asset has jumped by over 100 percent in the past month, barring a few adjustments here and there. Many have criticized Bitcoin already, with Michael Hartnett, chief investment strategist at Bank of America Securities, arguing that the asset looks to be a bubble heading into 2021.
Even some crypto believers have admitted concern over the current rally. In an investment review published earlier this week, Jonathan Ruffer, the Chairman of British investment firm Ruffer Investments, called Bitcoin a “nonsensical asset” that his firm had invested in because they believed in its vision.
Mike Novogratz, the head of crypto merchant bank Galaxy Digital, also told Yahoo! Finance on Wednesday that he estimated further Bitcoin dips soon. However, he isn’t so worried as he expects an influx of institutional crypto investment.