Russia: Now Potentially the Most Bitcoin-Averse Place

Russia may turn out to be the most hostile place for Crypto currencies such as Bitcoin and others.

A far-reaching ban on Crypto currencies in Russia has been announced earlier today by the Russian central bank. While that ban may be one thing (and is being discussed throughout mainstream and special interest media anyway), there are some other other aspects to the Russian central bank’s statement worth mentioning for showing utter ignorance of overall monetary matters and facts.

The Central Bank of Russia claims that:

“Bitcoin is an independent currency which is not regulated by a government and therefore carries a high risk in devaluation.” [Emphasis ours]

Economic history shows that government-regulated paper — or fiat–currencies are the ones which have failed throughout all of human history. There is not one single exception since ancient Egypt. In light of Russia’s track record after 1990 alone, the central bank’s point on “devaluation risk” is truly hilarious. (It may be worth — or even fun — to note here that Russian currency has been devalued by a factor of 5,000,000,000,000,000 [fifty quadrillion, you read right] since the 1917 revolution.)

“Due to the anonymous nature of virtual currencies, (…)” the geniuses in both general technology and IT at the Russian central bank continue [that there are some percieved risks of yada-yada-yada].

The fact that Bitcoin is not anonymous at all defies the whole point and, therefore, even the argument about those feared risks: Bitcoin is not “anonymous” but in reality weakly pseudonymous, which is a very different thing.

Those who do not know more about it should refrain from commenting on it, period.

Bitcoin is, in fact, the most accessible pile of data on any sort of financial transaction a government could ever get or want. Maybe that is one reason why Bitcoin is not popular for illegal, let alone terrorist, use. Crypto currencies can be made more private by certain additional measures and careful use, the same as with cash or certain ways of making bank transfers, but these measures go beyond the ability of most people and are not normally applied by Crypto coin users.

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