Russian Economist Predicts Bitcoin Decline Post Digital Ruble Launch

A Russian economist has forecasted a downturn for Bitcoin following the introduction of the digital ruble and other major CBDCs. Alexander Razuvaev, a member of the Guild of Financial Analysts and Risk Managers, suggested that while crypto won't disappear entirely, it will likely be marginalized.

Cryptocurrency Market Overheating and the Potential Impact of Bitcoin Halving

Razuvaev highlighted the current overheating of crypto markets due to unsustainable demand spikes. He indicated a potential for continued short-term price increases but warned of unpredictability post-April, possibly alluding to the upcoming Bitcoin Halving event.

Bitcoin Value Versus Traditional Assets: The Nature of High-Risk Investment

The economist emphasized the role of demand in determining crypto value, contrasting it with traditional assets like stocks or bonds. He stressed the inability to evaluate Bitcoin through cash flows, branding it as a risky investment.

The Introduction of Digital Currencies Creates a Favorable Environment for Investors

Razuvaev envisioned a future where the rollout of digital rubles, dollars, and euros would create a more favorable environment for investors. He drew parallels between crypto and historical speculative bubbles like the Dutch tulip mania, suggesting caution.

The Potential of Digital Ruble Payments

The economist speculated on Moscow's potential to enforce digital ruble payments on pensioners, hinting at increasing CBDC adoption trends globally. He also tied geopolitical factors, such as US and EU sanctions, to the strengthening of Moscow's CBDC plans.

Russia's Central Bank Postpones the Launch of the Digital Ruble Plan

Contrary to Razuvaev's projections, the Russian Central Bank Governor clarified that the digital ruble is still in pilot testing and won't launch before 2025.