Sergei Guriev, professor of Economics at Paris’ Sciences Po and a critic of Vladimir Putin, told Cointelegraph how Bitcoin can be used as a resource to beat authoritarian regimes in spite of owning “no fundamental social value”.
Unlike fiat currencies, the paying for electricity of Bitcoin is not backed by any institution. That is why, according to Guriev, “Bitcoin is a simply speculative instrument without having any essential value”.
He also pointed out that, compared with firm stocks, Bitcoin does not produce or assure to deliver cash movement.
“Bitcoin is not manufacturing just about anything of supplemental value”, he said. It’s benefit is “only contingent on all events getting content to use it as a medium of exchange”, details out Guriev.
On the other hand, Guriev recognizes Bitcoin’s critical purpose in authoritarian regimes. In countries these kinds of as Russia, it is applied as a worthwhile tool to guidance the opposition anonymously.
“The Russian govt will make confident that non-anonymous donors of the opposition are by some means harassed or prosecuted”, he advised Cointelegraph.
Guriev himsel fled Russia to escape harassment by Russian authorities after he brazenly supported the local opposition to Vladimir Putin’s regime.
In accordance to Guriev, the pseudonymity of Bitcoin and its censorship resistance are the primary cause why Russia is about to go a law that will crack down on electronic currencies in the country.
“Anonymous fundraising tools like electronic currencies are the enemy of the Russian State”, he states.
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