Virtual currencies have been a target of fear, uncertainty, and doubt in the markets and on social media platforms. This has pushed many investors to avoid crypto-based investments as they are highly volatile and may take a significant risk. However, this may not be the case for Russia.
Kommersant quotes a report by MEXC cryptocurrency exchange as saying Russian investors prefer to store virtual currencies instead of gambling on the market with them. Up to 60% of cryptocurrency wallets fall into a “dormant” state, according to the report. In the opinion of market players, cryptocurrency is viewed as a long-term investment tool first and foremost, although tough market regulations also play a part in driving the market.
Nikita Soshnikov, director of Alfacash, says “dormant” Bitcoin wallets have been on the increase for the past year and a half. On this measure, Russia ranks in the top five.
In recent years, the idea of merely owning long-term cryptocurrency assets has steadily gained popularity in the world, says ENCRY Foundation founder Roman Nekrasov. According to Nekrasov, there are a lot of Russians among the early adopters of Bitcoin who became interested in it in the first five years of its existence and do not plan to sell it.
Regulation of cryptocurrency remains an open question in Russia. The government and Central Bank are expected to hammer out an agreement by February 18.A transition period is also being considered by the Ministry of Finance regarding taxes on cryptocurrencies.
Despite the bill becoming law, experts interviewed by the newspaper believe that Russians won’t rush to reveal their cryptocurrency assets. As EXANTE’s Leading Strategist Janis Kivkulis noted, cryptocurrencies in Russia “will remain an iceberg, nine-tenths of which is hidden from view.”
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
