Russian Economist Predicts Bitcoin’s Decline Upon Digital Ruble Launch

Bitcoin

According to a Russian analyst, bitcoin will fall following the introduction of the digital ruble and other significant CBDCs. According to OSN, Alexander Razuvaev, a member of the Guild of Financial Analysts and Risk Managers’ supervisory board, stated that cryptocurrency will not “die completely,” but rather become “marginalized.”

‘Bitcoin Will Tumble’– But‘Not Like MMM Ponzi’

Razuvaev asserted that cryptocurrency markets are now “greatly overheated” due to soaring and unsustainable demand. He noted that BTC and other crypto currencies were expected to grow in the immediate term, but that unanticipated occurrences may occur “after April.”

The economist was most likely alluding to the next Bitcoin halving event, which is slated to take place in April this year. Razuvaev said:

“Crypto is all about demand. If it is in demand, it becomes more expensive. If not, it becomes cheaper. Any [financial asset] – be it a stock or a bond – can be assessed through its cash flows. Bitcoin cannot be valued this way, and that is why it is a risky asset for investors.”

Dutch Tulip Fever

Razuvaev again repeated frequent accusations regarding cryptocurrency’s alleged resemblance to Dutch tulip fever. This speculative frenzy in 17th-century Holland caused tulip bulb prices to surge to “more than the worth of a horse,” according to the Russian economist. He explained:

“Of course, after a very short time, the owners of these ‘boundless riches’ found themselves with nothing. They were just like their ideological descendants who love investing in financial pyramids.”

However, he claimed that unlike conventional “pyramid schemes,” like the notorious MMM Ponzi, crypto would not vanish completely. Razuvaev said:

“Times have changed since the MMM days [in the mid-1990s]. Now, financial toys can live for a long time. I don’t think that the cryptocurrency market will die completely. Instead, it will become a kind of marginal phenomenon.”

Could Digital Ruble Really Outshine BTC?

Razuvaev has previously stated that Moscow will someday require retirees to accept digital ruble payments. The outspoken economist stated that CBDC adoption “trends” will “only intensify over time,” as “technological progress takes its toll.”

In late January, he also predicted that US and EU-led sanctions regimes would eventually weaken the US dollar and bolster Moscow’s CBDC objectives.
The Russian Central Bank Governor reiterated this month that the digital ruble is currently under experimental testing and will not be available until 2025.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.

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