Bitcoin Will Tumble After Launch of Digital Ruble, Says Russian Economist

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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March 6, 2024

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Bitcoin will tumble following the rollout of the digital ruble and other major CBDCs, a Russian economist has claimed.

Per the media outlet OSN, Alexander Razuvaev, a member of the supervisory board of the Guild of Financial Analysts and Risk Managers, said that crypto would not “die completely,” but would become “marginalized.”

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

Razuvaev claimed that the crypto markets were currently “greatly overheated” by spiking and unsustainable demand.

He added that BTC and other crypto prices would likely continue to rise in the short term, but claimed that unpredictable events could take place “after April.”

The economist was likely referring to the next Bitcoin Halving event, expected 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.”

And Razuvaev said that a “better world” for investors would emerge “when digital rubles, dollars, and euros begin to roll out.”

Razuvaev also reiterated familiar claims about crypto’s supposed similarity to Dutch tulip mania.

This speculative frenzy in 17th-century Holland saw tulip bulb prices rise to “more than the worth of a horse,” the Russian economist noted. 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.”

India’s state-run oil refiners are shying away from contracted Russian crude supply as the once-booming trade becomes much harder under tighter enforcement of US sanctions https://t.co/q0QHLKZ4oa

— Bloomberg (@business) March 6, 2024

Could Digital Ruble Really Outshine BTC?

Razuvaev previously claimed that Moscow would eventually force pensioners to accept digital ruble payments.

The outspoken economist said that CBDC adoption “trends” would “only intensify over time,” as “technological progress takes its toll.”

In late January, he also claimed that US and EU-led sanctions regimes would ultimately undermine the United States dollar, and provide a boost to Moscow’s CBDC plans.

The Russian Central Bank Governor this month underlined claims that the digital ruble is still in pilot testing, and will roll out no earlier than 2025.