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The Chairman of the S. F. Sharapov Russian Economic Society, Valentin Katasonov, a well-known Russian economist, warned Moscow not to foray into creating a national Bitcoin reserve. He characterized the idea as a “ticking time bomb,” warning that Bitcoin’s extreme price fluctuations could lead to financial ruin for many if its value collapses. Such speculative assets, he underscored, present serious threats to national economic stability. His worries echo those of Russia’s Central Bank, which has dismissed the BTC stockpiling in favor of more stable assets such as gold and the Chinese yuan.
Referring to Crypto Reserves, Compares ‘Laying Landmines.’
Valentin Katasonov, a notable Russian economist and chairman of the S. F. Sharapov Russian Economic Society, has urged against the establishment of a national cryptocurrency reserve. He compared the actions to “laying landmines” within the economic system, cautioning that the inherent volatility of digital assets like Bitcoin could cause the economy to collapse.
Cryptocurrency is not a complete money instrument; this is a speculation tool, the value of which is not supported by anything, Katasonov said His fears echo wider institutional reluctance; the Central Bank of Russia, which in September said it prefers traditional assets to crypto on the basis of security and stability risks.
Criticism of Crypto Advocates
Economist Valentin Katasonov delivered a searing rebuke to advocates of incorporating cryptocurrencies into the mainstream economy. He labeled these proponents “fifth columnists” and warned that
“their actions could weaken the nation’s economic security” and potentially work “in favor of external forces instead of for the stability of our nation.”
Katasonov observed that the United States had already considered holding crypto assets.
“but as of today, no country has successfully worked out such a strategy.”
For the full discussion and his reservations about this sort of economic policy, check out expert skepticism about crypto’s role in a national economic policy.
Central Bank’s Official Position
The Bank of Russia has recently pushed back against establishing a strategic Bitcoin reserve, noting crypto’s high volatility and speculative nature. The Ministry of Finance aligned itself with this position, reiterating that its current investment approach is centered on traditional safe houses like gold and the yuan.
Nevertheless, officials stated that should liquid reserves of the National Welfare Fund amount to 7–10% of the country’s GDP, the government could consider allocating part of it to higher-risk assets, including cryptocurrencies. This brazen relative restraint highlights Russia’s focus on financial security.
Current State of the Bitcoin Market
Current Bitcoin (BTC) Price (March 27, 2025) (USD): $87,475 The highly volatile digital asset hit an intraday high of $88,306 USD and ran as low as $85,872 USD. These fluctuations are in line with at least Bitcoin’s past, not least its sensitivity to speculation surrounding the market, macroeconomic mood, and institutional behavior. While interest globally continues, economic experts are advising against speculative activity given the volatility of crypto markets. When investing in such high-volatility assets, investors are also encouraged to analyze risk carefully.
What To Expect From Bitcoin in 2025
Various analysts have shared predictions regarding Bitcoin price action across 2025. Here’s a summary of some of the most notable predictions:
| Source | Predicted Price (USD) | Timeframe | Notes |
| Business Insider | $110,000 | By end of 2025 | Betting markets indicate a 61% chance of reaching this price, with lower confidence for higher targets. |
| The Australian, citeturn0news23 | $120,000 | Early 2025 | Driven by policy changes under President Trump and increased institutional investment. |
| MarketWatch | $150,000 | 2025 | Based on historical trends and cycles, with expectations of significant gains despite potential short-term volatility. |
| Investopedia | $180,000 – $200,000 | By end of 2025 | Attributed to finite supply and rising institutional demand, though regulatory concerns remain. |
| MarketWatch | $200,000 | 2025 | Anthony Scaramucci predicts this surge, citing broader adoption and favorable financial policies. |
Conclusion
This concept might tempt those who perceive it as an antidote for contemporary market vulnerabilities, but specialists such as Valentin Katasonov recommend prudence. The nature of cryptocurrencies, being highly volatile and speculative, brings with it risks that hold the potential to threaten economic stability. In its hands, Bitcoin is getting world attention, and it showed the volatile price movement that reassures wise financial methods and good risk evaluation.
Note: Investment in cryptocurrencies carries a great risk owing to their volatile nature. This article is not financial advice. Investments can go up and down at any moment, and readers should do their due diligence and reach out to a financial professional before making any investment decisions.
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Frequently Asked Questions
1. Why do some economists fear crypto hoarding?
Experts caution that using volatile assets in national strategies without appropriate safeguards or long-term financial plans can cause economic instability.
2. Do digital currencies have the potential to affect a country’s monetary stability?
Yes, because pillars of official use of crypto can open governments to budget gaps, inflation risks, and public sector losses amid unpredictable price swings.
3. Financial Experts Say Digital Tokens Aren’t Real Money
“Most economists don’t think they are real currency alternatives because they are speculative tools and not backed or predictable like the monetary systems that we have,” said David Card, an economics professor at the University of California, Berkeley.
4. Which countries have actually incorporated crypto into their official reserves?
No country has demonstrated long-term success yet. Pilot efforts like El Salvador’s are controversial and closely monitored by international financial institutions.
Glossary of Key Terms
1. Cryptocurrency
A digital or virtual currency that is secured by cryptography and is usually based on decentralized technology like blockchain. It doesn’t rely on central banks.
2. Volatility
A measure of how much a financial asset’s price varies. The high volatility of crypto is seen as both a boon and a bane — very simply, a buyer or investor for crypto can see their investment increase within days or even hours, but as we all well know, it can drop even faster.
3. Speculative Asset
Investment that is pursued for buying and selling at profit rather than for value or income. A lot of unpredictability in the market makes cryptocurrencies regarded as speculative.
4. Central Bank
The government financial institution that manages currency, interest rates, and monetary policy. It regularly evaluates the risks of adopting digital currencies.
5. Strategic Reserve
We call this an official reserve—it is a stockpile of financial or physical assets (e.g., gold, currency) held by a government used to guarantee the value of its currency and, in certain conditions, to help stabilize the economy in times of crisis or emergency.
6. Economic Stability
A condition in which a nation’s economy is in a state of steady growth, low inflation, and low unemployment — sometimes interrupted by wild or risky financial gambles.
7. National Welfare Fund
A significantly sized pool of capital managed by the government is oriented to stabilizing public funds and investing in long-run assets. Its magnitude can impact risk appetite for new investments.
8. Digital Token
Bitcoin or alternative cryptocurrency There is a digital token on a blockchain that represents a unit of value. Not all tokens are intended to be stable or legal tender.
