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

Bitcoin will experience a significant drop in value once the digital ruble and other major central bank digital currencies (CBDCs) are launched, according to a Russian economist. Alexander Razuvaev, a member of the Guild of Financial Analysts and Risk Managers’ supervisory board, believes that while crypto will not completely disappear, it will become marginalized. Razuvaev contends that the crypto markets are currently overheated due to unsustainable demand. He suggests that BTC and other cryptocurrencies may continue to rise in the short term, but unforeseen events after April, possibly related to the upcoming Bitcoin Halving event, could lead to a decline in prices. Razuvaev stated that Bitcoin is considered a risky asset for investors because it cannot be valued based on cash flows like stocks or bonds. He believes that a better investment environment will emerge with the introduction of digital rubles, dollars, and euros. Razuvaev also draws comparisons between the current crypto market and historical instances of speculative manias, such as the Dutch tulip mania. However, he states that unlike traditional pyramid schemes, which eventually collapse, cryptocurrencies may persist as a marginal phenomenon. Razuvaev has previously suggested that Moscow would compel pensioners to accept digital ruble payments and highlighted the growing trend towards CBDC adoption globally. He also believes that US and EU-led sanctions will undermine the US dollar and boost Moscow’s CBDC plans.