Putin Said the Risks of Cryptocurrencies are Very High
"In some countries, cryptocurrency is used, and in some it is simply prohibited. In my opinion, it is prohibited in China, in some other 3-4 countries. But it is not guaranteed by anything, the volatility is enormous, so the risks are very high. I also think that it is necessary listen to those who talk about these big risks, "he said at the investment forum" Russia Calling! "at VTB Capital.
At the same time, he noted that in some economies, cryptocurrencies are used more and more widely. “Maybe this is the future, but we need to carefully monitor how this process will develop,” the head of state believes.
Cryptocurrency price dynamics on Friday follows the dynamics of the value of other assets, influenced by reports of the emergence and spread of a new more dangerous strain of COVID-19 in South Africa.
The price of bitcoin, the largest cryptocurrency with a market capitalization of more than $ 1 trillion, fell by more than 6%, to a monthly minimum of $ 55,000, data from CoinDesk showed.
Ether is the second largest cryptocurrency in the world by capitalization, it is getting cheaper by almost 10% and by 14:33 Moscow time its value dropped to $ 4,072 thousand.
Dogecoin, created in honor of the Internet meme Doge with a Shiba Inu dog, is down 8%.
Reports of the detection of a new strain of coronavirus infection, designated B.1.1.529, in South Africa and Botswana on Friday sparked a negative reaction in the global markets for stocks, oil, government bonds and even cryptocurrencies. "Bitcoin does not provide much of a hedge," said Neil Wilson, an analyst at brokerage firm Markets.com. At the same time, cryptocurrencies were considered by investors to be a favorable object for investing money, since they are mainly separated from the pressures in the main financial markets, writes MarketWatch.
Many countries, including the UK and Israel, have begun reimposing restrictions on tourism and travel.