March 4, 2021

The State Duma predicted the end of the bitcoin bubble

Anatoly Aksakov, Head of the State Duma Committee on the Financial Market, explained how the value of the first cryptocurrency and stressed that it is necessary to block all channels of its use for illegal purposes.

Bitcoin is a cryptocurrency bubble and earlyor later, it must burst, says Anatoly Aksakov, head of the State Duma's financial market committee. In an interview with TASS, he said that the use of this cryptocurrency should be regulated by law.

"... Bitcoin itself as a cryptocurrency is nothingprovided. This is a private currency, its value is determined by the trust of the participants in the corresponding information system. In this regard, bitcoin is the basis of one of the bubbles in the cryptocurrency market, and I think that sooner or later this bubble must burst, ”Aksakov stressed.

He added that Bitcoin should be regulated andmay be prohibited as a means of payment. According to the deputy, it is necessary to block all channels for using the first cryptocurrency to finance drug trafficking, terrorist operations, money laundering, corruption schemes, and so on.

Aksakov recalled that came into force in Russiathe law on digital financial assets and digital currency, which states that cryptocurrencies cannot be used as a means of payment in Russia. At the same time, the authorities have made changes to the legislation that determine that owners of cryptocurrencies must declare them, and if they receive income from the use of cryptocurrencies, they must pay taxes.

Formerly chief investment strategist at Bank ofAmerica Michael Hartnett has called Bitcoin "the worst of all bubbles." The expert warned that the rise in the value of the cryptocurrency in recent months in 250% could be the result of speculative mania.