The European Central Bank (ECB) recently published a controversial report on Bitcoin, sparking strong reactions in the crypto community. The institution claims that the first holders of the crypto would take advantage of the newcomers, calling for strict regulation or even its ban.
A sharp criticism of the Bitcoin model
The ECB study, published on October 12 on its official website, paints an unflattering portrait of Bitcoin and its ecosystem. According to the institution, those who acquired BTC at a low price would resell them profitably to new entrants, thus creating an unfair dynamic.
The central bank goes as far as suggest radical measures to stem this phenomenon. In particular, she recommends strict control of Bitcoin prices, or even its outright ban. The stated objective is to prevent a continued rise in prices which would benefit early investors.
“ In any case, current non-holders should understand that they have compelling reasons to oppose Bitcoin and advocate for legislation against it, aimed at preventing Bitcoin's price rise or seeing the Bitcoin disappear completely. »
The ECB's argument raises many questions. In particular, it obscures the fact that all financial markets operate on the principle of buying at a low price and reselling at a profit.
In addition, the institution reiterates the unfounded accusation that Bitcoin is mainly used for illicit transactions, while recent reports from the US Treasury demonstrate the opposite.
A biased analysis that ignores the fundamentals
The ECB report ignores several crucial elements to understand the growing attractiveness of Bitcoin. He notably fails to mention that the increase in its value since 2009 is largely explained by its planned scarcity, in the face of galloping inflation of fiat currencies.
Indeed, the euro has lost around 85% of its value compared to gold since its introduction in 1999. This massive depreciation illustrates the limits of the current monetary system, which Bitcoin seeks to address. Its creation by Satoshi Nakamoto aimed to offer a decentralized alternative and a store of value in the face of the erosion of purchasing power.
The ECB article thus seems to obscure the real underlying economic issues. By focusing on alleged exploitation between investors, it avoids addressing the issues of massive public debt and monetary inflation which are pushing more and more savers towards cryptos.
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