Vladimir Putin: The Risks Related to Cryptocurrencies Are Very High (Report)

The President of the Russian Federation – Vladimir Putin – believes bitcoin and the alternative coins bear high risks for investors. However, he predicted that the asset class might play a significant role in the future financial network.

‘The Volatility Is Colossal’

The 69-year-old politician aired his thoughts about the cryptocurrency space during the “Russian Calling” investment forum in Moscow, reported by RBC. According to Putin, private digital assets are highly volatile, which makes them a risky investment instrument:

“It is not backed by anything, the volatility is colossal, so the risks are very high. We also believe that we need to listen to those who talk about those big risks.”

The volatile nature of most cryptocurrencies, including bitcoin, is indeed present. However, the leading digital asset is a relatively new token, and it could overcome its price fluctuations in the upcoming years, especially if authorities impose a comprehensive regulatory framework on it.

Anthony Scaramucci – SkyBridge Capital’s CEO – is a supporter of this thesis. He recently compared BTC to Amazon, reminding that the e-commerce giant was also unstable in its early days but is now one of the most influential companies.

While criticizing cryptocurrencies, though, Putin did not rule out the possibility that they could become part of the future monetary system:


“Although, of course, in some countries, in some economies, cryptocurrencies are being used more and more widely. Maybe this is the future, but we need to closely monitor how this process will develop.”

Not long ago, the southern neighbor of Russia – China – imposed a total ban on cryptocurrency mining and trading. Putin revealed that his country does not intend to go that far. The authorities will follow the developments in the industry and implement “elements of regulation,” which will not harm the nation’s economy:

“As for Russia, we will act on the basis of the realities that are developing in our country. There should be some elements of regulation, but not those that would constrain economic activity.”

Vladimir Putin
Vladimir Putin, Source: Bloomberg

Putin’s Previous Stance

This is not the first time when the Russian President has shared his viewpoint on the cryptocurrency universe. In the middle of October, he noted that bitcoin and other digital assets could one day be used as a unit of account and a means of payment.

Asked whether cryptocurrencies could replace the US dollar when settling oil trades, for example, Putin said it “too early to talk about this:”

“In order to transfer funds from one place to another – yes, but to trade, let alone trade in energy resources, in my opinion, is still premature.”

Featured Image Courtesy of Anadolu Agency


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Jack Dorsey’s Square Has Been Renamed “Block”

Key Takeaways

  • Square Inc., Jack Dorsey’s payments company, has been rebranded and will now be known as Block.
  • The name change represents the company’s recent focus on blockchain and cryptocurrency, among other things.
  • The company’s seller service and its stock ticker $SQ will still be represented by the Square brand name.

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Square Inc., a payments company headed by former Twitter CEO Jack Dorsey, announced today that it will undergo a complete rebrand.

Square Becomes Block

Square will now be known as Block. On Twitter, the company mentioned blockchain as one reason for the name change:

Block references the neighborhood blocks where we find our sellers, a blockchain, block parties full of music, obstacles to overcome, a section of code, building blocks, and of course, tungsten cubes.

The new name will cover several company projects, including its payments app Cash App, its crypto division, the Tidal music service, and its decentralized exchange project TBD.

Square will also rename its Square Crypto division to Spiral. It noted that Bitcoin “continues to grow like a spiral from a single point, encompassing more and more space until it touches everything.”

The company’s seller service for merchants will maintain the Square brand. Its stock ticker ($SQ) will also remain the same.

The change closely resembles Facebook’s recent decision to rebrand as Meta. Square even gave a nod to Facebook by prefacing its Twitter thread with the words “Not to get all meta on you…” before explaining the rebrand in-depth.

Square Is Focusing on Crypto

The news comes after CEO Jack Dorsey resigned from Twitter on Monday. Though Dorsey did not explicitly say that he left to focus on Square, previous statements dating back to June suggested that he would leave Twitter to focus on Bitcoin if necessary.

Square began as a traditional payments processor, but the company’s business has increasingly shifted toward Bitcoin. This November, it reported an 11% year-over-year increase in Bitcoin revenue and a 29% year-over-year increase in Bitcoin profits.

The firm has also invested heavily in crypto. It holds over 8000 BTC, an amount currently worth $459 million.

Disclaimer: At the time of writing this author held less than $100 of Bitcoin, Ethereum, and altcoins

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This simple Bitcoin options strategy lets traders profit while also hedging their bets

For traders who are undecided on Bitcoin’s (BTC) move, the “long condor with call options” yields optimal results with very low risk. This strategy offers protection down to $53,500, which would be a 7% downside move from the current $57,600, and returns a positive outcome up to $67,500.

Options markets provide more flexibility to develop custom strategies. Unlike futures, there are two separate instruments available. The call option gives the buyer upside price protection, while the protective put option offers the opposite.

Bitcoin options strategy returns. Source: Deribit Position Builder

This long condor strategy has been set for the Dec. 31 expiry and uses a slightly bullish range. The same basic structure can also be applied for other periods or price ranges, although the contract quantities might need some adjustment.

Bitcoin was trading at $57,600 when the pricing took place, but a similar result can be achieved starting from any price level. The minimum contract size depends on the derivatives exchange, but one needs to keep the suggested ratio to hold the overall strategy structure.

The first trade requires buying 0.54 contracts of the $52,000 call options to create positive exposure above this price level. Then, to limit gains above $56,000, the trader needs to sell 0.50 BTC call option contracts.

To further limit gains above $64,000, another 0.45 call option contracts should be sold. To complete the strategy, the trader needs upside protection above $70,000 by buying 0.41 call option contracts if the Bitcoin price skyrockets.

Related: 3 reasons why Bitcoin’s drop to $56.5K may have been the local bottom

The 1.50 to 1 risk-reward ratio is moderately bullish

The strategy might sound complicated to execute, but the margin required is only 0.0152 BTC, which is also the max loss. Traders should remember that it is also possible to close the position ahead of the Dec. 31 expiry if there’s enough liquidity.

The max net gain occurs between $56,000 and $64,000 at 0.0233 BTC, which is 50% higher than the potential loss. With 30 days until the expiry date, this strategy gives the holder peace of mind because unlike futures trading, there is no liquidation risk.

Furthermore, having a profit range that varies from a 7% downside move to a positive 17% price change seems conservative and covers a decent $14,000 price range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.