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Russia Bans Bitcoins




The Russian Prosecutor General's office released a statement on February 6th, which points out to the banning of Bitcoin (according to Fox News):


"Bitcoin is a money substitute and cannot be used by citizens and legal entities"



Russia becomes one of very few countries who have either restrained or have banned Bitcoins (and/or other digital currencies). Thailand also banned Bitcoins, while China has banned its use in financial transactions.

Other countries that have taken measures against Bitcoin without fully banning it, include: Germany, Norway, Switzerland, South Korea, the USA, France. Additionally, the European Central Bank has also adopted a negative position.
Some of these countries have spoken out against it, some have announced they will tax Bitcoin transactions and so on.

Among the negative issues cited against Bitcoins and other digital currencies is the "lack of intrinsic value". As if the "standard" currencies had any intrinsic value...

The news about Russia's ban on Bitcoins will certainly affect the price of Bitcoins on the medium term and also the demand for them.

Could this be a prelude to a wide-spread Bitcoin ban in the World?
The EU, the USA, Japan would certainly have the interest to ban the use of Bitcoins and similar digital currencies.

It is highly likely that other digital currencies will be affected by the bans (similarly to Bitcoin).

Bitcoin fans, businessmen and Russian owners of the cryptocurrency have called this a loss to Russia.

Strangely, Bitcoin's price has been falling last week, just prior to the Russian ban's announcement and right after it, it spiked. According to some, it was a buying opportunity for those outside of Russia.
Apparently, demand elsewhere has increased. It seems - if

After the ban, we can say with certainty that other countries will follow Russia's, China's, Thailand's example.

Cryptocurrencies are highly volatile and therefore extremely risky assets. But where there are risks, there are opportunities as well - financial speculations, obviously.

Prime Values' first news about Bitcoin (which was published almost a year ago) is accessible through here.





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