Russia will buy Bitcoin to avoid US sanctions, economist claims

Asia Times ^ | 01/14/2019 | Luke Thompson

[SeekAndFind]

A high-profile Moscow economist has reportedly said the Russian government is looking to invest in Bitcoin next month.

Australian crypto news website micky.com claims to have spoken with Vladislav Ginko, a lecturer at the Russian Presidential Academy of National Economy and Public Administration in Moscow.

“US sanctions may be mitigated only through Bitcoin use,” the site quoted Ginko as saying. “I believe that the Russia [government] will start diversifying its reserves with Bitcoin in February this year when US Congress will introduce… new sanctions against Russia,” he reportedly said.

Ginko estimated that the first wave of Russian investment in crypto could begin as early as February and could be worth billions and thinks the investment will come from both the state and private sector.

“Because of US sanctions Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins.”

It won’t be the first time a country facing the economic wrath of Washington has turned to Bitcoin. Last year, Venezuela, North Korea and Iran all explored the use of cryptos to circumvent US sanctions.

[butlerweave]

Are Bitcoins still a thing ,LOL

[SeekAndFind]

RE: Are Bitcoins still a thing ,LOL

Yes, for the right price.

[rrrod]

Cool..then crush them.

[cuban leaf]

Someones trying to make them a thing. Gee, Russia is going to buy a bunch. I should buy a bunch so I can cash in on the price rise. :)

[AAABEST]

Uh huh...let me know how banking with pretend currency works out for them.

[PGR88]

No. They’ll just buy gold and silver

This so-called “economist” probably has a position in bitcoin he wants to talk-up

[VietVet876]

What’s the official ratio between Bitcoin and Pokemon cards?

[aMorePerfectUnion]

“me know how banking with pretend currency works out for them.”

My US currency is also a made up currency, and not backed by anything tangible - no gold, no silver, no real estate, no interest contracts...

What it has, even as the world’s biggest debtor, is confidence. And being the healthiest sick horse in a stable of sicker horses.

Full disclosure: I own no cryptocurrencies, bitcoin or other. I have some US cash.

[marron]

There is a market for financial privacy. The US gov will do what it can to make it illegal where ever it pops up.

[Rockingham]

The dollar is legal tender for all US transactions, public and private. Show up at Walmart with dollars and you can buy stuff. Show up with bitcoin credits or gold bars and they will politely decline to take them.

[Fhios]

yea, they’re going to risk buying bitcoin, a very unstable currency that takes 4 digit price swing downward .

[aMorePerfectUnion]

The dollar is legal tender for all US transactions, public and private.

It has the force of law in the US.

And...??

Show up at Walmart with dollars and you can buy stuff. Show up with bitcoin credits
or gold bars and they will politely decline to take them.

Unless you preferred larger bills than $100, which are now illegal.

While there are a growing number of places that accept cryptocurrencies online,
most people do not use them for that purpose.

And you must accept what happens to the purchasing power of every dollar you hold,
thanks to policies of the Federal Reserve.

There is no free lunch. Just choices.

[SunkenCiv]

Oh yeah. And Russia, China, Venezuela, and Iran are going to join forces to create a new reserve currency! The US dollar is doooooooomed! Bitcoin traders thought they had trouble with hackers before this...

• Gundlach sees rising yields hitting stocks, trouble in junk bonds and a possible bitcoin bounce | Heidi Gutman | January 8, 2019 | CNBC

  "I don't recommend anything with bitcoin, really … but if you really want to speculate, I think it could make it to $5,000. Talk about an easy 25 percent," he said in the webcast, even as he advised to "get the heck out of bitcoin."

• DoubleLine's Gundlach says bitcoin leads stock market movements | Reuters | Jennifer Ablan | April 2, 2018
• Fed to make sequential hikes until 'something breaks': Gundlach [2017]
• [June 20, 2016] Gundlach -- Trump Will Be an Economic Success [2016]

  Gundlach maintained his prediction that Britain's proposed exit from the European Union -- "Brexit" -- will not happen. However, if it does, he said other countries will follow and that interest rates in Spain and Italy have been rising to reflect that outcome. An exit, Gundlach said, would be the "beginning of the end of the Eurozone, which Britain never fully embraced."

• Gundlach: Donald Trump will be the next president and things will get 'scary' [2016]
• Bond Guru Says Trump Nomination Could Bring Down World Economy [2016]
• Calmer Waters for the Bond Market? Gold? Worst Over? [2013]
• The All-Important Question, Are Major Economies in Recovery? [2012]
• Muni-Bond Default Estimate $100 Billion/Flacks Pronounce Fear "Overblown" [2011]

[Rockingham]

The gold standard is so beneficial that exactly zero countries in the world rely on it today.

[aMorePerfectUnion]

“The gold standard is so beneficial that exactly zero countries in the world rely on it today.”

I did not argue any country should have a gold standard. Sorry.

[montag813]

Bitcoin jumped 5% in 2 minutes after this report broke

[rednesss]

Try and exchange a sandwich for a $20 to an isolated Amazonian tribe. You’ll find out pretty quickly how pretend our currency really is.

[AAABEST]

Try and exchange a sandwich for a $20 to an isolated Amazonian tribe. You’ll find out pretty quickly how pretend our currency really is.

You're probably right, but most of us don't use dollars to buy sammiches from Amazonians. We use them to buy fuel, buildings, land and food ... and so does pretty much the rest of the world.

They don't call it the "almighty dollar" for nothing.

[rednesss]

Regardless, it is a completely useless piece of linen, and only has value, because everyone involved make-believes that it does. It’s just as pretend as any other fiat currency.