Ramzan Kadyrov, the Head of the Chechen Republic, has a firm distrust of Bitcoin and cryptocurrencies and a profoundly confused and incorrect evaluation of the BTC price and Bitcoin’s ability to act as a store of value.
The Head of the Chechen Republic, Ramzan Kadyrov, recently shared some harsh criticism, along with some ignorance, of Bitcoin as cryptocurrencies grow in popularity among Chechnya’s citizens.
In an article by Pravda on Aug. 31, Kadyrov was extremely critical of the media’s portrayal of digital assets, and particularly Bitcoin being represented as digital gold. The dictator claims to believe that Chechens are being duped on “how to get rich quickly with cryptocurrency.
People take loans, save on themselves and their families, invest their last money in digital assets that promise incredible profits.
While the dictator’s warning appears to have the Chechen people’s best interests at heart — it is obvious that Kadyrov is hopelessly uneducated on the subject when he tried to warn citizens that excess profit is always together with additional risk. He said:
As an example, over the past month, Bitcoin has depreciated in half.
Even though it may be unnecessary to divulge this information to anyone who has followed crypto at all these years, bitcoin’s price has made tremendous gains over the past couple of months. It is widely accepted as a new form of digital gold by enterprises and educated investors.
The Chechen Leader believes that crypto offers high risks and fills the people he rules over with dreams of easy money and argues that he is more concerned about the moral side of cryptocurrency investment.
He concluded the piece:
A person who invests in cryptocurrencies expects their value to grow many times. But why is he waiting for this? Did the person work hard to get this profit? Did the money he invested help other people? […] No, on the contrary, the price of such cryptocurrencies is growing only due to the greed of people who have invested in them, trying to attract new investors and profit from their greed.
Kadyrov is the Authoritarian Leader of Chechnya, which falls under the Russian Federation. The unelected dictator said that he would not support any projects which leverage digital assets and cryptocurrency.
The Russian Federation passed its first major legislation regarding cryptocurrencies on July 28. However, the country’s Central Bank continues to treat the crypto industry as a criminal field and thinks it facilitates illegal dark transactions.
Additionally, research from the Paxful peer-to-peer Bitcoin marketplace has released some important data regarding its P2P trading platform in Russia. The study indicated that Russians were increasingly leveraging cryptocurrency to escape the corrupt monolithic Russian banking system.