{"id":14997,"date":"2022-11-30T19:49:52","date_gmt":"2022-11-30T19:49:52","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ecb-blog-post-insists-this-is-bitcoins-last-stand-officials-claim-btc-is-headed-toward-irrelevance-bitcoin-news\/"},"modified":"2022-11-30T19:49:52","modified_gmt":"2022-11-30T19:49:52","slug":"ecb-blog-post-insists-this-is-bitcoins-last-stand-officials-claim-btc-is-headed-toward-irrelevance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ecb-blog-post-insists-this-is-bitcoins-last-stand-officials-claim-btc-is-headed-toward-irrelevance-bitcoin-news\/","title":{"rendered":"ECB Blog Post Insists This Is ‘Bitcoin’s Last Stand,’ Officials Claim BTC Is Headed Toward ‘Irrelevance’ \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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On Wednesday, Nov. 30, 2022, a blog post published by the European Central Bank (ECB) discusses bitcoin and the authors Ulrich Bindseil and J\u00fcrgen Schaaf seem to believe its \u201cbitcoin\u2019s last stand.\u201d The ECB authors further say that while bitcoin\u2019s price has consolidated and stabilized, the central bank officials remarked that \u201cit is an artificially induced last gasp before the road to irrelevance.\u201d<\/strong><\/p>\n

Members of Europe\u2019s Central Bank Believe They Predicted Bitcoin Would Be Heading Toward \u2018Irrelevance\u2019 Before FTX Went Bust<\/h2>\n

Two members of Europe\u2019s central bank, Ulrich Bindseil, the director general of the ECB\u2019s market infrastructure and payments division, and J\u00fcrgen Schaaf, an advisor to the ECB\u2019s payments sector, published a blog post about the leading crypto asset bitcoin (BTC<\/a>).<\/p>\n

The ECB blog post is called \u201cBitcoin\u2019s Last Stand<\/a>,\u201d and the writers claim the crypto asset is becoming irrelevant. Bindseil and Schaaf explain that BTC<\/a>\u2019s price has dropped 76% lower than the $69K all-time high, and the authors have noticed bitcoin proponents think BTC<\/a> is taking a \u201cbreather on the way to new heights.\u201d<\/p>\n

The ECB authors do not believe this will be the case this time around. \u201cMore likely, however, it is an artificially induced last gasp before the road to irrelevance,\u201d the ECB blog post\u2019s authors insist. \u201cAnd this was already foreseeable before FTX went bust and sent the bitcoin price to well below USD16,000.\u201d<\/p>\n

The members of the European Central Bank further opine that \u201cbitcoin has never been used to any significant extent for legal real-world transactions.\u201d The ECB\u2019s blog post adds:<\/p>\n

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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.<\/p>\n<\/blockquote>\n

ECB Officials Say Banks That Promote Bitcoin Bear \u2018Reputational Risk,\u2019 Blog Post Insists Regulation Does Not Represent \u2018Approval\u2019<\/h2>\n

The authors don\u2019t necessarily use the terms, but Bindseil and Schaaf relate bitcoin to a Ponzi or pyramid scheme, as the authors stress that \u201cspeculative bubbles rely on new money flowing in.\u201d<\/p>\n

\u201cBig Bitcoin investors have the strongest incentives to keep the euphoria going,\u201d the blog post\u2019s writers insist. While regulatory policy has grown around cryptocurrency assets, the two ECB officials believe that \u201cregulation can be misunderstood as approval.\u201d Bindseil and Schaaf are not too keen on the idea that the crypto space should be allowed to innovate \u201cat all costs.\u201d<\/p>\n

Bitcoin\u2019s innovative value, the ECB authors say has been very little compared to the risks that allegedly outweigh innovation. The ECB paper states:<\/p>\n

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Firstly, these technologies have so far created limited value for society \u2013 no matter how great the expectations for the future. Secondly, the use of a promising technology is not a sufficient condition for an added value of a product based on it.<\/p>\n<\/blockquote>\n

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, \u201cit should be treated as neither in regulatory terms and thus should not be legitimised.\u201d<\/p>\n

Bindseil\u2019s and Schaaf\u2019s blog post is very similar to the opinions held by people like Peter Schiff<\/a>, Charlie Munger<\/a>, and the hundreds of so-called bitcoin obituaries<\/a> published over the years. Despite the ECB opinion post, there are many individuals, academic papers, and companies that wholeheartedly disagree with the two central bank executives.<\/p>\n

The global blockchain leader at EY, Paul Brody, recently said<\/a> that this crypto winter is a \u201cmuch milder crypto winter than the last one.\u201d Brody also said that crypto price fluctuations are impacting the industry\u2019s growth a lot less these days. \u201cFor the first time ever, price ups and downs don\u2019t have that big of an impact on the long-term growth of the industry,\u201d Brody opined.<\/p>\n

Furthermore, a paper<\/a> 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\u2019s accessibility to gold reserves.<\/p>\n

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\nTags in this story
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“Bitcoin\u2019s Last Stand”<\/a>, approval<\/a>, Bitcoin<\/a>, Bitcoin (BTC)<\/a>, Bitcoin Obituaries<\/a>, Blog Post<\/a>, BTC<\/a>, Charlie Munger<\/a>, ECB<\/a>, ECB director general payments<\/a>, ECB members<\/a>, ECB officials<\/a>, EU<\/a>, Europe\u2019s central bank<\/a>, European Central Bank<\/a>, EY exec<\/a>, Harvard paper<\/a>, investment<\/a>, J\u00fcrgen Schaaf<\/a>, Matthew Ferranti<\/a>, not suitable<\/a>, opinion piece<\/a>, Paul Brody<\/a>, payments system<\/a>, Peter Schiff<\/a>, Regulation<\/a>, Ulrich Bindseil<\/a><\/div>\n<\/div>\n

What do you think about the ECB\u2019s blog post about Bitcoin\u2019s so-called \u2018last stand?\u2019 Do you agree with the officials from Europe\u2019s central bank? Let us know your thoughts about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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