Vladislav Ginko, a University professor in Russia, who reportedly has ties with the government has made several claims which may lead to Bitcoin’s bullish run next month. The professor on January 8, is quoted to have said the Russian Federation may be relying more on cryptocurrencies in order to mitigate the U.S. sanctions.
Mitigating U.S Sanctions Through the Use of Bitcoin
Specifically, Vladislav Ginko made some revelations to Micky, an Australian cryptocurrency and Blockchain website. Notable among them is that the “U.S. sanctions may be mitigated only through Bitcoin use”. Therefore, the country will replace its cash reserves in the Central bank with cryptocurrencies around February this year.
Based on reports, the lecturer pointed out that Moscow has limited options when it comes to how its cash reserves are stored. Therefore, the $466 billion reserved in the central bank will possibly be replaced with Bitcoin due to the U.S. sanctions. Moreso, these sanction has forced reputable members of the country to dump the dollar and adopt the virtual currency.
More claims of this nature which may pique an investor’s interest is that Russia will invest $10 billion in Bitcoin as a way of gaining back control when it comes to how the U.S. dollar influence’s the oil and gas sector. The same is said about the country’s Gross Domestic Product (GDP) which the cryptocurrency industry accounts for 8 percent.
Claims Becomes a Clickbait to Get Investors
While all these claims are unverified, it can be said to be a clickbait in order to set a bullish run in Bitcoin’s price in February this year. February is when the lecturer believes that the new U.S. sanctions will be fully imposed.
In the Economist own words:
I believe that Russia will start diversifying its reserves with bitcoin in February, when the U.S. Congress will introduce new sanctions
Media Outlet’s Publication of the Economist’ Claims
In the same vein, this price trend may result from the fact that a number of reputable websites and those in the cryptocurrency industry are publicizing Ginko’s claims. The same can be said about the social media platforms the economist has stated these. As a result, it could influence the decision of an average investor who may buy in with the belief that the market prices will be on the rise due to Russia’s huge investment.
Elina Sidorenko, a government official has, however, made statements contrary to the Economist’s claims. According to her, Russia is not ready to combine its financial system with cryptocurrencies. Besides, 30 years from now, it is unlikely that these digital assets will be incorporated into the system. Nevertheless, the Russian Prime minister, Dmitry Medvedev like Ginko, believes that these virtual currencies have potentials.