A significant percentage of Russian investors prefer to use Bitcoin as an investment tool compared with other traditional investment tools like Gold and Forex. Based on the survey conducted by The Russian Association of Currency Brokers (AFD), a Russian-based Forex regulatory organization, 77% of Russian investors are more likely to invest in Bitcoin and other cryptocurrencies than investing in Gold and Forex.
The survey on the perception of Bitcoin by Russian investors was conducted from August 4 to 24, 2021, with 502 Russian investors participating in the survey.
Of the 502 investors sampled, 386 of the investors surveyed prefer Bitcoin, Ethereum, and Litecoin as an investment tool, 45 preferred Gold as the ‘best investment’ tool. In contrast, the remaining 71 investors preferred Forex as their choice investment tool.
23% of Russian investors never used Bitcoin of the 502 surveyed, 23% had never invested or used Bitcoin or other types of cryptocurrencies for payment purposes. Of this figure, more than 77% are willing to invest in Bitcoin in the near future, 7.6% do not believe in Bitcoin as an investment tool, while the remaining 15% have a neutral opinion about Bitcoin as viable. Given these impressive statistics, one of the best free crypto prediction sites, forecasts price increase of the complete crypto market in 2022.
Evgeny Masharov, AFD Chief, said the survey clearly indicates that Russian investors now accept Bitcoin and other cryptocurrencies, as against former opinions of being a ‘hype product.’ According to the AFD Chief, the survey findings will be made available to the Russian apex bank and the State Duma Committee on Financial Markets. A survey conducted by World Gold Council in 2020 showed that Bitcoin occupied the 5th position, with Russian investors preferring to invest in a savings account, Forex, real estate, and insurance.
The Russian Government’s Stance On Bitcoin
Although more Russians are beginning to adopt cryptocurrencies for use and investment purposes, the Russian government has a strong stance against the use of cryptocurrencies. In a statement made in June 2021, the Russian Central Bank’s Governor said investing in Bitcoin and altcoins is the riskiest investment to make.
TASS reported that Russian lawmakers are working on bill amendments to authorize the Russian government to seize cryptocurrencies. This is under the guise that Bitcoin and other altcoins like Monero are being used for sponsoring criminal purposes, including supporting terror organizations.
According to Igor Krasnov, the Prosecutor General of Russia, the Russian government will curb the use of Bitcoin for ‘criminal activities’ by adopting the July 2020 federal law on digital assets. This law will give the Russian government power to restrict or seize cryptocurrencies and other digital assets.
Krakov, in a later statement, also claimed that Bitcoin, due to its anonymous nature, has been increasingly used in bribery and corruption, and confiscating Bitcoin will curb its use as a means of perpetrating bribery and corruption and sponsoring criminal activities in the country. He also claimed that cryptocurrency exchange platforms are being used to channel stolen money from the government coffers.
From Krakov’s point of view, it is evident that the Prosecutor General lacks the concept of how bitcoin or other cryptocurrencies work, not realizing that there’s no way the government can confiscate the bitcoin in users’ wallets because it is impossible to stop cryptocurrency transactions except by hacking attempts on users’ wallets.
Seizing Bitcoin by the Russian government would have been possible if it operates on a centralized platform; however, Bitcoin operates on a decentralized, autonomous network that does not need human inputs to confirm transactions. Therefore, no government or body worldwide can stop Bitcoin transactions.
Despite the Russian government’s strong stance against cryptocurrencies, it is working on creating its version of Digital Currency, which will be regulated by the Russian Central Bank. Although this might be a laudable move, it does not equate to using Bitcoin since the government can track every transaction done with its Digital Ruble.
A Final Thought
What is not clear is how the Russian government will proceed to implement its laws against cryptocurrencies usage in the country, but one thing is clear, the Russian government is violating its citizens’ human rights if it enacts laws against the use of cryptocurrencies.
Thankfully, the use of Bitcoin and other cryptocurrencies remains the only way Russians can free themselves from their totalitarian government with no respect for human rights like privacy, freedom, and financial sovereignty.
Nevertheless, more Russians are beginning to adopt the use of Bitcoin and altcoins, as evidenced in the survey carried out by AFD, which showed that 77% of Russian investors are willing to invest in Bitcoin. This will give the Russian populace control on how, where, when, and what to spend their crypto-assets on.
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