Sergei Guriev, professor of Economics at Paris’ Sciences Po and a critic of Vladimir Putin, informed Cointelegraph how Bitcoin can be utilized as a tool to fight authoritarian regimes regardless of having “no fundamental social value”.
Unlike fiat currencies, the buying energy of Bitcoin just isn’t backed by any establishment. That is why, in accordance to Guriev, “Bitcoin is a merely speculative instrument without any fundamental value”.
He additionally identified that, in contrast to firm shares, Bitcoin doesn’t produce or promise to produce money circulate.
“Bitcoin is not producing anything of additional value”, he stated. It’s worth is “only contingent on all parties being happy to use it as a medium of exchange”, factors out Guriev.
However, Guriev acknowledges Bitcoin’s vital position in authoritarian regimes. In international locations such as Russia, it’s used as a helpful tool to help the opposition anonymously.
“The Russian government makes sure that non-anonymous donors of the opposition are somehow harassed or prosecuted”, he informed Cointelegraph.
Guriev himsel fled Russia to escape harassment by Russian authorities after he brazenly supported the native opposition to Vladimir Putin’s regime.
According to Guriev, the pseudonymity of Bitcoin and its censorship resistance are the principle cause why Russia is about to cross a regulation that can crack down on digital currencies within the nation.
“Anonymous fundraising tools like digital currencies are the enemy of the Russian State”, he states.