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Russian is looking to invest billions of dollars in bitcoin in the first quarter of 2019 which may potentially trigger a new Bitcoin bull market.
According to Russian economist, Vladislav Ginko, who is also a lecturer at Moscow’s Russian Presidential Academy of National Economy and Public Administration, the impending US sanctions by Donald Trump against Russia will force the country to diversify its reserves in Bitcoin which can take place as early as February 2019. The economist further said that the Russian government might be forced to consider the acquisition of 470 billion dollars in Bitcoins since cryptocurrency provides a diversification channel for the $470 billion held in bank reserves.
Investment funds in Moscow are engulfed with requests from wealthy Russians “how to buy for $ several millions Bitcoins”.
— Vladislav Ginko (@martik) January 9, 2019
“Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future).” Ginko said.
Vladislav Ginko stated in a report that the Russian government is looking to invest as much as $10 billion dollars in the first quarter of 2019, which will be followed by other large purchases as the sanctions become more intense on the Russian government. In response to the “problems of low adapting of cryptocurrencies compared to other financial markets”, Ginko replied via a tweet that the acquisition of tokens (BTC) by the government could contribute to increasing capitalization.
Chris, I believe sitting here in Moscow, Russia, that the real factor of Bitcoin apotion will be when Russian government I’m working for will start investing almost $470 billion reserves into Bitcoins. I expect that it’ll be at least $10 billion in the first quarter of this year.
— Vladislav Ginko (@martik) January 6, 2019
Crypto-currency had a very tough six months where the crypto-market crashed on several occasions, however, things might change once Russia enters the cryptocurrency market. Cryptocurrency holders, especially Bitcoin owners may very well witness an enormous increase in their cryptocurrency assets. If things go according to Ginko’s predictions then Bitcoin may finally fulfill its potential.
