Bitcoin

Bitcoin Has 'Deflated Like a Soap Bubble', Says Russia's Economic Development Minister

The Russian economic development minister has said that Bitcoin has “deflated like a soap bubble,” following a drop in value that brought it down to a yearly low of $3,200.

The Bitcoin Soap Bubble

Maksim Oreshkin, Minister for economic development in Russia, made his remarks on Wednesday to the Russian RBC TV channel on the sidelines of the VTB Capital investment forum Russia Calling!

In a report from UrduPoint, Oreshkin said:

You may recall what I said, for example, last year, when Bitcoin’s price jumped up to $20,000, and now it is lower than $4,000, we said very simple things. Bitcoin itself is a soap bubble, it deflated, that’s what happened.

He added that it was unfortunate that people who had invested had lost money, but that “in terms of new technologies, new businesses, it gave a positive impetus.” Talking about the blockchain, he noted that there are several investment projects involving the technology, with the blockchain gaining widespread attention worldwide.

His remarks about Bitcoin come at a time when the industry suffered a significant loss in two weeks. Last weekend, Bitcoin fell to a year-to-date low of around $3,200. The last time such a figure was seen was back in September 2017. At the time of publishing, the market has rebounded slightly, with Bitcoin trading at $4,031. According to CoinMarketCap, it has seen a 6.32 percent drop in 24 hours.

Altcoins that have also fallen in the last 24-hours include XRP, which is down nearly five percent. It’s currently valued at $0.36. Ether, in third place, remains above the $100 mark, at $113, but has dropped by 4.34 percent. Bitcoin Cash has been pushed into fifth place, with Stellar’s XLM token replacing it in fourth. However, the market cap between the two is marginal: $3.058 billion and $3.015 billion, respectively.

Out of the top 10, Bitcoin SV – in ninth place – is the only one in the green over a 24-hour period. It’s up 0.16 percent, with a value of $94.20.

The Naysayers Will Continue, but Confidence Reigns

This, however, won’t be the last of the critics against the market. Whether prices go through the roof or they drop, someone will always have something negative to say.

Yet, those who believe in the market can be heard too.

Fundstrat’s Tom Lee is one such Bitcoin bull. So much so, that earlier this month he said it can still reach $15,000 by the end of 2018. Whereas, Jeff Sprecher, the chair of the New York Stock Exchange and CEO of the Intercontinental Exchange (ICE), has said that digital assets are here to stay.

Yes, the market may be down now, but like anything in financial circles, what goes up must come down, just as what goes down must go up.

Do you agree with Oreshkin’s remarks? Let us know in the comments below.

Images courtesy of Shutterstock

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