A recent blog post from the European Central Bank deplores the danger that bitcoin represents for the banking sector and individuals. Failing to keep its promises and presenting too many flaws, Bitcoin would fight one last desperate battle to continue to exist.
Bitcoin’s last stand
Ulrich Bindseil and Jürgen Schaaf are two senior officials at the European Central Bank who work on payment infrastructures. In a paper on the ECB blog on November 30, they estimate that Bitcoin is at the end of its runbreathless.
According to officials, the history of bitcoin is a long process which mechanically leads to its loss. Returning to the emergence of bitcoin under the aegis of Satoshi Nakamoto, they believe that thehe promises of decentralization and peer-to-peer payment were not required.
A dangerous financial “bubble”
Titled “Bitcoin’s last stand” the article mentions in particular the “financial bubble” represented by BTC and other crypto-assets. It must be said that the last few years have been particularly tumultuous for the sector, such as the collapse of Terra Luna and the FTX affair, still under investigation. Enough to give some arguments against cryptocurrencies, as well as bitcoin with which it is associated. But it is the question of price that will mark the end of this digital monetary experienceaccording to the ECB:
From 2022, the price of bitcoin fluctuates around 20,000 USD. For bitcoin supporters, this apparent stabilization is a sign of a pause on the path to new highs. However, it is more likely that it is a last artificial burst before sinking into oblivion.
Ulrich Bindseil and Jürgen Schaaf, on the blog of the ECB
BTC exceeds $40,000
Thus, bitcoin would soon meet its end. A slow death which would take root in the growing disinterest, in the face of a falling price. But it must be believed that the moment was not the best chosen to choose this argument. Because it is precisely a surge in the market which happened… a few days later. Of course, the price remains volatile. But this new momentum seems to once again push back the prospect of a long descent into hell for BTC.
As is often the case, the rise in bitcoin once again attracts investors. Likewise, media interest is returning to this asset class that is relatively unknown to the general public. The honorable longevity of this leaderless, entirely autonomous network seems quite surprising. This is because we should perhaps recognize its structural robustness, coupled with a certain social utility. Otherwise, it would not be used on a daily basis by millions of people to exchange value without an intermediary.
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