Sooner or later the Bitcoin bubble will burst

Sooner or later the Bitcoin bubble will burst, predicts a well-known Russian detractor

Anatoly Aksakov, a member of the Russian Duma, has suggested that global authorities should ban payments in Bitcoin

Anatoly Aksakov, a member of the Russian State Duma, reiterated his negative stance towards Bitcoin (BTC) shortly after the 1K Daily Profit cryptocurrency briefly returned to $40,000 on 14 January.

In an interview with local news agency TASS, Aksakov stated that Bitcoin is not backed by anything and therefore the BTC bubble will burst sooner or later:

„As a cryptocurrency, Bitcoin is not backed by anything. It is a private currency and its value is based on trust in the relevant data system. In this context Bitcoin provides a basis for a bubble in the crypto market and I think this bubble should burst sooner or later.“

Aksakov also called for strict regulations on Bitcoin, suggesting that global jurisdictions should probably ban it as a payment method. Russia has already banned crypto payments from 1 January 2021.

Aksakov stated:

„It is necessary to cut all channels that use Bitcoin to finance drug trafficking, terrorist operations, money laundering, corruption and so on.“

Aksakov also noted that Bitcoin is „the mother of blockchain“. According to the MP, „blockchain technology has existed for a long time, but thanks to Bitcoin it has become popular and is now widely used.“

Aksakov is not the only one to argue that Bitcoin is a speculative bubble. Earlier this year Michael Hartnett, chief investment strategist at Bank of America Securities, called BTC the „mother of all bubbles“.

Aksakov was highly critical of Bitcoin in 2020

He believes that Bitcoin „has no future“ and that crypto payments would destroy the global financial system.

After Bitcoin’s explosive rally, which brought its price up to $42,000 in January, several global authorities voiced similar criticism. European Central Bank President Christine Lagarde said on 13 January that Bitcoin is a „shady and highly speculative“ asset that contributes to money laundering.