Russia, which is one of the few countries that have restricted crypto trading, is seeing spikes in the demand for over-the-counter (OTC) investments in Bitcoin and other major cryptocurrency assets.
As the local reports say, the daily trading volume for cryptocurrencies like Bitcoin and Ethereum in Moscow alone reaches $50 million on peak days – which is still small in comparison to the major cryptocurrency exchanges – but then again large knowing that there is big regulatory uncertainty in Russia.
Right now, the government restricts cryptocurrency investing in Russia. However, since cryptocurrencies are currently considered as properties, it is technically legal for citizens and residents of the country to hold cryptocurrencies.
Aleksei Karpenko, who is a senior partner at the law firm Forward Legal, has recently spoken to a Bitcoin.com and said the following:
“There is a common rule – if specific transactions are not prohibited, then they are allowed. This is a matter of agreement between a buyer and a seller.”
Russia is seeing a stagnation in the growth of its crypto market – mostly due to the lack of regulatory frameworks and policies. However, the local OTC platforms that rely on global crypto exchanges to pool in liquidity into the cryptocurrency market charge from 1.5% to 2% as commission rates and are able to generate hundreds of thousands of dollars in daily profit.
According to analysts, the activity of cryptocurrency investors in (restricted) regions such as Russia, China and India will likely increase in the years to come, regardless of the state of their policies.
Tom Lee Predicts: Bitcoin Will Recover And Will Reach $15,000 By The End Of 2018
“But we believe the negative swing in sentiment is much worse than the fundamental implications.”Lee explained a few crypto-related events that were likely the cause of the recent drop in value on the entire crypto market that happened on November 14. More specifically, he believes that the recent Bitcoin Cash hard fork has really divided the community and that this event is a big contributor in boosting the uncertainty on the market which is responsible for the recent crash. The recent drop, three days ago, is the first major price movement among the major coins and for bitcoin in particular. Lee noted back in November that he was ‘’pleasantly surprised’’ by how stable bitcoin is. At this time he believed that Bitcoin has found its safe space at $6,000.
A New $4 Billion Drop Sees Bitcoin Cash – And The Entire Market – Falling
Financial Analyst Gary Shilling: Bitcoin Is Some Kind Of A Grand Ponzi Scheme
“There’s supposedly a limit on there, but where is it written in stone that can’t increase? And of course, the electricity that’s churned out by the miners trying to solve these algorithms is just extraordinary.”He dismissed bitcoin by calling it a black box which is a very complex investment model. Also, Shilling noted that he is very suspicious of many things that are clearly not transparent and said that it is not the best idea to invest in something if you don’t understand it. There are plenty of reasons why bitcoin fails as a currency such as not being a store of value, it’s also not a medium of exchange and it is still not accepted universally.
“All the requirements that you normally have for a currency, it just doesn’t have. The only legitimate use I can think of in bitcoin is off-the-books kinds of transactions, underworld transactions. I just don’t see a legitimate use. It is a game,’’ said Shilling.However, the younger generation of tech millionaires is extremely confident that bitcoin will eventually manage to toss aside all other currencies. Some of them even predict bitcoin to reach a price of $250,000.
‘Time May Be Right’ For Home Crypto Mining: Coinbase CTO
“The big difference with decentralized mining in 2018 is that there are now so many different coins and tokens out there that it’s almost certainly possible to make a profit – or at least mine a decent amount of some crypto – via a decentralized home mining device like Coinmine.”This is a notable perspective mostly because Srinivasan previously founded 21.co which was a startup that emerged from stealth in 2015 and had an ambitious plan to embed Bitcoin miners in everyday devices- which was then backed by Coinbase Ventures. Following the Coinmine announcement, Srinivasan wrote:
“The big difference with decentralized mining in 2018 is that there are now so many different coins and tokens out there that it’s almost certainly possible to make a profit – or at least mine a decent amount of some crypto – via a decentralized home mining device like Coinmine."As we can see from the above stated, the CTO of Coinbase seems optimistic about Coinmine's ability to add even more coins later, foreseeing a future where the company could play a key role in the launch of new tokens.
“I believe that decentralized mining is an important idea and worth trying again. It’s mining as Satoshi intended: many devices around the world with no single point of failure." Srinivasan concluded.
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