Bitcoin use to expand in near future - says ex- Russian Finance Minister

“I don’t rule out that there is a bubble here, but for several years we will have an expansion of bitcoin use. We are facing risks of deflation, fraud schemes [and] a lack of sufficient regulation. But it will be used for now, will expand its boundaries,” said Aleksey Kudrin, who served as Russia’s Finance Minister in 2000 -2011 and now chairs the Council of the Center for Strategic Reaserch think tank.

Bitcoin has been surging in popularity as a digital payment system that allows users anywhere in the world to transact directly without interference from intermediaries, governments, regulators, or central banks. However, some worry that the surge in value of bitcoin can turn it into an asset bubble in an unregulated market.

The big question, of course, is why the market suddenly got so optimistic about Bitcoin’s future. One factor is the Japanese government formally recognized the cryptocurrency last month, giving it greater legitimacy in Asia’s richest major economy. There’s been steady growth of international money-transfer services that use Bitcoin to move cash from one country to another.