The ever-increasing price of the first cryptocurrency will benefit only early asset holders and lead to the impoverishment of the rest of society, threatening cohesion, stability, and democracy. This is stated in a report by the ECB.
Economists Ulrich Bindseil and Jürgen Schaaf argue that Satoshi Nakamoto’s original idea of Bitcoin as an international payment system has failed, leading to its repositioning as an investment asset.
According to the ECB document, later users of the first cryptocurrency may incur losses even without a “burst bubble” scenario. They will benefit solely at the expense of new buyers, the experts noted.
This redistribution of wealth is unlikely to occur without detrimental consequences for society, the economists added.
Early Bitcoin follower Tuur Demeester criticized the document, calling it “a true declaration of war.”
The expert noted that authorities will use the arguments presented in the ECB report to impose harsh taxes or bans in the crypto industry.
According to him, this will not be “a war between the haves and the have-nots.”
In November 2023, ECB President Christine Lagarde admitted that her son lost “almost everything” on cryptocurrency investments, despite numerous warnings.
In February 2024, ECB experts reaffirmed their view of Bitcoin’s “zero value”, despite the approval of spot Bitcoin ETFs in the US.
Back in the same month, Tuur Demeester predicted the rise of the first cryptocurrency’s price to $600,000 by 2026.
