Aksakov says Bitcoin is a bubble that will eventually burst

Bitcoin is not backed by anything, and sooner or later this bubble will burst, said Anatoly Aksakov, head of the State Duma’s Committee on the Financial Market, in an interview with TASS.

He called Bitcoin the “mother of the blockchain,” because, in the official’s view, it is thanks to the first cryptocurrency that the technology has become widely adopted.

Bitcoin itself has no backing and is a private currency, whose value “is determined by the trust of participants in the relevant information system,” Aksakov said:

“In this sense, Bitcoin is the basis of one of the bubbles in the cryptocurrency market, and I think sooner or later this bubble will burst.”

The official is convinced that cryptocurrency should be regulated and may be banned as a means of payment:

“In any case, all channels for using Bitcoin to finance drug trafficking, terrorist operations, money laundering, corruption schemes, and so on must be blocked.”

Earlier Aksakov stated that cryptocurrencies without a single issuer have no future , and also that transactions involving crypto assets should be taxed .

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