On Wednesday, Nov. 30, 2022, a blog post published by the European Central Bank (ECB) discusses bitcoin and the authors Ulrich Bindseil and Jürgen Schaaf seem to believe its “bitcoin’s last stand.” The ECB authors further say that while bitcoin’s price has consolidated and stabilized, the central bank officials remarked that “it is an artificially induced last gasp before the road to irrelevance.”
Members of Europe’s Central Bank Believe They Predicted Bitcoin Would Be Heading Toward ‘Irrelevance’ Before FTX Went Bust
Two members of Europe’s central bank, Ulrich Bindseil, the director general of the ECB’s market infrastructure and payments division, and Jürgen Schaaf, an advisor to the ECB’s payments sector, published a blog post about the leading crypto asset bitcoin (BTC).
Objava na blogu ECB-a se zove “Bitcoin's Last Stand“, a pisci tvrde da kripto imovina postaje irelevantna. Bindseil i Schaaf to objašnjavaju BTC’s price has dropped 76% lower than the $69K all-time high, and the authors have noticed bitcoin proponents think BTC uzima "oduška na putu ka novim visinama".
The ECB authors do not believe this will be the case this time around. “More likely, however, it is an artificially induced last gasp before the road to irrelevance,” the ECB blog post’s authors insist. “And this was already foreseeable before FTX went bust and sent the bitcoin price to well below USD16,000.”
The members of the European Central Bank further opine that “bitcoin has never been used to any significant extent for legal real-world transactions.” The ECB’s blog post adds:
Bitcoin is also not suitable as an investment. It does not generate cash flow (like real estate) or dividends (like equities), cannot be used productively (like commodities) or provide social benefits (like gold). The market valuation of Bitcoin is therefore based purely on speculation.
ECB Officials Say Banks That Promote Bitcoin Bear ‘Reputational Risk,’ Blog Post Insists Regulation Does Not Represent ‘Approval’
The authors don’t necessarily use the terms, but Bindseil and Schaaf relate bitcoin to a Ponzi or pyramid scheme, as the authors stress that “speculative bubbles rely on new money flowing in.”
“Big Bitcoin investors have the strongest incentives to keep the euphoria going,” the blog post’s writers insist. While regulatory policy has grown around cryptocurrency assets, the two ECB officials believe that “regulation can be misunderstood as approval.” Bindseil and Schaaf are not too keen on the idea that the crypto space should be allowed to innovate “at all costs.”
Bitcoin’s innovative value, the ECB authors say has been very little compared to the risks that allegedly outweigh innovation. The ECB paper states:
Prvo, ove tehnologije su do sada stvarale ograničenu vrijednost za društvo – bez obzira na to koliko su velika očekivanja za budućnost. Drugo, upotreba obećavajuće tehnologije nije dovoljan uslov za dodatnu vrijednost proizvoda na njoj.
Lastly, the central bank executives think that banks that promote bitcoin will bear reputational risk. The ECB members say that because they believe bitcoin is not a suitable investment nor a payment system, “it should be treated as neither in regulatory terms and thus should not be legitimised.”
Bindseilov i Schaafov blog post je vrlo sličan mišljenjima ljudi poput Peter Schiff, Charlie Munger, te stotine tzv bitcoin obituaries objavljeno tokom godina. Uprkos stavu ECB-a, postoji mnogo pojedinaca, akademskih radova i kompanija koji se iskreno ne slažu sa dva rukovodioca centralne banke.
Globalni blockchain lider u EY-u, Paul Brody, nedavno rekao da je ova kripto zima "mnogo blaža kripto zima od prethodne." Brody je također rekao da fluktuacije cijena kriptovaluta ovih dana mnogo manje utječu na rast industrije. „Prvi put ikad, usponi i padovi cijena nemaju toliko veliki utjecaj na dugoročni rast industrije“, smatra Brody.
Nadalje, a papir published by Matthew Ferranti, a Harvard Ph.D. candidate in economics, says that banks should hold a little bitcoin. Ferranti said that even central banks should consider holding bitcoin, and more specifically, central banks struggling with financial sanctions depending on the financial institution’s accessibility to gold reserves.
What do you think about the ECB’s blog post about Bitcoin’s so-called ‘last stand?’ Do you agree with the officials from Europe’s central bank? Let us know your thoughts about this subject in the comments section below.
Krediti za slike: Shutterstock, Pixabay, Wiki Commons
odricanje: Ovaj je članak samo u informativne svrhe. To nije direktna ponuda ili prikupljanje ponuda za kupovinu ili prodaju, niti preporuka ili potvrda bilo kojeg proizvoda, usluge ili kompanije. Bitcoin.com ne pruža investicijske, porezne, pravne ili računovodstvene savjete. Ni kompanija ni autor nisu direktno ili indirektno odgovorni za bilo kakvu štetu ili gubitak koji je uzrokovan ili navodno prouzrokovan ili povezan s uporabom ili oslanjanjem na bilo koji sadržaj, robu ili usluge spomenute u ovom članku.
Source: https://news.bitcoin.com/ecb-blog-post-insists-this-is-bitcoins-last-stand-officials-claim-btc-is-headed-toward-irrelevance/