Russia’s State Duma member Anatoly Aksakov reiterated his negative stance on Bitcoin (BTC) shortly after the cryptocurrency recovered $ 40,000 on January 14.
In an interview with local news agency TASS, Aksakoff claimed that Bitcoin is not backed by anything, so the bitcoin bubble will burst sooner or later:
“Bitcoin is not backed by anything like a cryptocurrency. It is a private currency and the value is based on trust in the relevant computer system. In this context, Bitcoin provides the basis for a bubble in the cryptocurrency market, and I think this bubble should burst sooner or later.”
Aksakoff also called for strict regulation of Bitcoin, stating that global jurisdictions should likely ban it as a method of payment. Russia has already banned cryptocurrency payments from January 1, 2021.
“It is necessary to cut all channels for using Bitcoin to finance drug trafficking, terrorist acts, money laundering, corruption schemes, etc.,” Aksakov said.
Aksakov also noted that Bitcoin is the “mother of the blockchain”. “Blockchain technology has been around for a long time, but thanks to Bitcoin, it has become popular and is now widely used,” he said.
Aksakoff isn’t the only one claiming that Bitcoin is a bubble. Michael Hartnett, chief investment officer at Bank of America Securities, claimed that Bitcoin looked like the “mother of all bubbles” in early January 2021.
As Cointelegraph previously reported, Aksakov has become one of Bitcoin’s biggest critics by 2020. He is confident that Bitcoin “has no future” and that digital currencies will destroy the global financial system.
After Bitcoin’s massive $ 42,000 surge in January, a number of global governments have criticized the world’s largest cryptocurrency. European Central Bank President Christine Lagarde said on January 13th that Bitcoin is a “very speculative resource” and a “fun business” that facilitates money laundering.