Experts appreciated Siluanov’s call for Russians to invest in government bonds instead of cryptocurrencies

Does this mean no lobbying for mining

Buying cryptocurrency is a risky strategy for saving and increasing income. This was stated by the head of the Ministry of Finance of the Russian Federation Anton Siluanov during the online marathon “Financial Healthy Lifestyle”. It is better to invest in more reliable instruments – keep part of the funds in a bank account, and buy federal loan bonds (OFZ) for the rest. The statement looks surprising, given the months-long dispute between the department and the Bank of Russia, in which the Ministry of Finance defended the legalization of cryptocurrency mining. What will happen if you follow the advice of Siluanov and why the Ministry of Finance needed to offer OFZ to the population, experts told MK.

Sergey Mendeleev, head of InDeFi Smart Bank:

“In the current situation on the market, investments in OFZs really look more reliable than investments in cryptocurrencies. This is a sad joke for crypto investors going through some pretty hard times right now. But if the horizon of your financial planning is a little more than the memory of a fish, then, to paraphrase the immortal classic, I would not recommend reading Soviet newspapers at all before making a decision on significant investments, and even more so listening to officials of the Ministry of Finance. I know dozens of people who became dollar millionaires thanks to cryptocurrencies and not a single one who earned on the councils of ministers, pardon the involuntary pun.

With regards to not lobbying for mining, something seems to have happened in the minds of officials after the Digital Financial Assets (DFA) Amendment Bill was introduced. It can be argued that the Ministry of Finance is losing to the Central Bank in the battle for the legalization of cryptocurrency with a large score. There is very little time left before the final whistle in the form of the publication of the law. I doubt that the team of the Ministry of Finance will even manage to even the score, even with the support of the stands in the form of an army of crypto-investors.”

Vladislav Antonov, financial analyst at BitRiver:

“Any investment comes with risk. I think that the recommendation for investing in cryptocurrency within 5-10% of the amount of your free funds is good. As for OFZ, it will not be possible to make money on them, since inflation eats up all income. The price of bonds also decreases if the country is under sanctions and investors fear a default. As for stocks, they are no better than cryptocurrencies. Since the beginning of the year, bitcoin has fallen in price by 64%, the Moscow Exchange index has fallen by 41%. Stocks are also a risky asset, only the stock market is more heavily regulated. Big players also manipulate the price of blue chips, just like in the cryptocurrency market. Cryptocurrency is now at a low level. If it is possible to avoid a new series of bankruptcies of large companies, then Bitcoin will quickly begin to recover losses. The cryptocurrency market attracts with high volatility. If you have a head and know how to count, then crypto is more profitable than stocks. Therefore, if funds allow, you need to have all the assets in the portfolio.”

Dmitry Alexandrov, Head of Analytical Research Department, IVA Partners Investment Company:

“Now it will be necessary to replenish the resource of the Ministry of Finance to fulfill the increased budget expenditures, so we can expect an increase in the volume of OFZ placement. And among these tools there are those that allow you to tie incoming interest income to the value of the market rate, and index investments to the level of inflation – the range of OFZs is now very wide both in terms of types and maturities. At the same time, mining and investing in cryptocurrency are not the same thing, and the crypto market is in any case more risky and volatile than OFZ, so there is logic in the recommendation of the Ministry of Finance.

Nevertheless, it is impossible to compare these instruments in terms of profitability, without taking into account the acceptable risk and investment horizon. Therefore, for those who aim to save money, OFZ is better. And for those who are looking for risky or decentralized tools, adrenaline, it is better to choose cryptocurrencies or something similar. However, among the cryptocurrencies there are more or less stable (at least for now) instruments – hence the interest in this market.”

Anton Bykov, Senior Analyst at Esperio:

“Cryptocurrencies are inherently high-risk, speculative instruments that are in a deep drawdown most of the time, so no one from the officials encouraged people to buy them. In addition, it is worth distinguishing between the desire of the government to make money on miners and legalize cryptocurrency: no one plans to allow a wide mass of people to actively trade digital assets. In other words, it is not necessary to say that the Ministry of Finance somehow departs from its convictions.

On the other hand, the government needs money, and OFZs are the main tool for balancing the budget, which, due to sanctions, are no longer actively bought by non-residents (foreign investors). Here also it is necessary to find demand in the country. It is clear that this is not speculation, but rather an analogue of a bank deposit with a slightly higher annual yield. In general, comparing cryptocurrencies and OFZs is a rather strange exercise. OFZ can be conditionally called a risk-free instrument, and therefore the yield on them is not the highest on the market. As you know, in the market, the higher the potential risk, the greater the possible profit, which is why you can earn much more on the crypt, but you can literally lose all the invested funds.