Russia – The 5th Most Popular Bitcoin Investments Destination

Russia | November 2, 2020, Monday // 11:59|  views

Bitcoin is the cryptocurrency that has gained a lot of attention recently when compared to other cryptocurrencies. Since the early introduction of bitcoins back in 2008 by Satoshi Nakamoto, bitcoin has reached its peak in popularity, and became the most popular bitcoin currency throughout the whole world. Taking into consideration the fact that bitcoin is a cryptocurrency that is not related to banks or other financial institutions, the processing fees are low, it’s a digital currency supported by technology, and all of these is only a reason plus to choose cryptocurrencies over conventional currencies.

That’s what makes transactions processing far more efficient, doesn’t charge its clients large amounts of money to process bitcoin transactions, and most importantly, clients can use online platforms to transfer funds, exchange, buy or sell bitcoins and use fiat currencies. All in all, the future for bitcoins seems bright and its popularity is most noticeable among the younger generations.

Short History of Bitcoins

Bitcoin was the pioneer in the cryptocurrency world, and it has influenced other cryptocurrencies to emerge on the market. They aren’t issued by banks or other financial institutions, which helps the faster processing of bitcoin transactions, whether online or using ATM Machines. Today, bitcoin has reached a wider audience, addressing the needs of a higher number of people. Paying in shops, paying the restaurant bill, or being reimbursed for a flight delay in bitcoins, is something that a lot of people take advantage of nowadays. There is a number of online trading platforms where bitcoin users can easily trade, sell, buy, or exchange bitcoins in a variety of other currencies, including fiat currencies like euros and dollars.
Bitcoin’s Popularity in Russia

Russia is one of the countries where bitcoin is a revolution. Indeed, according to the World Council Organization, bitcoin is the fifth largest investment in the country. The survey included 2, 023 investors in Russia. The site is known for publishing surveys and researches on recent investments in the country, and it runs the popular portal gold. org. 2,023 investors from Russia were included in the survey, and according to it, 68% of the said that “gold is seen as an effective store of value.” According to the World Council Organization statistics, “Most Russian investors believe gold holds its long-term value and protects against currency and inflation fluctuations”.
The Fifth Most Popular Bitcoins Destination

While the regulation part still remains unclear in the country, it hasn’t stopped bitcoins to grow in popularity in Russia, and people enjoy trading their cryptocurrencies on and other trading platforms on the internet. The rating of cryptocurrency in the country is 17%, which makes it the 5th most popular investment in Russia. Other investments that complete the top 5 investments in the country are real estate, life insurance, foreign currencies, etc. The authors of the World Council Organization, regarding the bitcoin investments, say that the rise of cryptocurrencies shows that there is interest in bitcoin investments among retail investors. “As the Russian investment market takes shape, opportunities for different investment products will emerge and gold will need to respond”.

The Law Regarding Cryptocurrencies in Russia

While the law doesn’t clearly state the use of bitcoins, things are definitely moving forward. The previous version of the law stated that all bitcoin transactions are indeed illegal, and as expected, it came in for criticism by the bitcoin community in the country. The new version doesn’t define bitcoin transactions as illegal, but rather as an unacceptable payment method. The inconsistencies in the Russian law is something that the Russian authorities need to work on in the future. According to the bill’s sponsor, Anatoly Asakov, there is a possibility that the law regarding bitcoins in Russia will undergo some changes in the Russian Parliament.

A Lawyer’s viewpoint on the situation

According to Mikhail Uspensky, a lawyer from Russia, “The only thing outright prohibited is taking crypto as payment for goods and services, which was the Bank of Russia’s principal premise. But buying a cup of coffee for bitcoin is still a kind of exotic thing anyway”. According to him, the current version of the law regarding the use of bitcoins in the country is a kind of compromise between the local authorities on one side, and banks and other financial institutions in Russia. He further comments on the matter, saying that “They decided only to mention cryptocurrency in the bill so far and prohibit using it as a payment, but postpone deciding on more important issues, like the criminal cases [related to crypto], crypto [over-the-counter] businesses, and so on…”


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