By Bitcoin.com - 1 year ago - Nguva yekuverenga: 4 maminitsi
ECB Blog Post Inosimbisa kuti Izvi 'Bitcoin'Kumira Kwekupedzisira,' Vakuru Vanoti BTC Yakananga Ku "Irrelevance"
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).
Iyo ECB blog post inonzi "Bitcoin’s Last Stand, "uye vanyori vanoti crypto asset iri kusava nebasa. Bindseil naSchaaf vanotsanangura izvozvo BTC’s price has dropped 76% lower than the $69K all-time high, and the authors have noticed bitcoin proponents think BTC iri kutora “kufema munzira inoenda kunzvimbo dzakakwirira.”
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:
Chekutanga, matekinoroji aya kusvika parizvino agadzira kukosha kushoma kunzanga - zvisinei kuti tarisiro yeramangwana yakakura sei. Chechipiri, kushandiswa kwetekinoroji inovimbisa haisi mamiriro akakwana ekuwedzera kukosha kwechigadzirwa chakavakirwa pachiri.
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.”
Bindseil's uye Schaaf's blog post yakafanana zvakanyanya nemafungiro anobatwa nevanhu vakaita Peter Schiff, Charlie Munger, uye mazana evanodanwa bitcoin obituaries rakabudiswa nekufamba kwemakore. Zvisinei nemaonero eECB, kune vanhu vazhinji, mapepa ezvidzidzo, uye makambani asingabvumirani nemoyo wese nevakuru vaviri vebhanga guru.
The global blockchain mutungamiri paEY, Paul Brody, munguva pfupi yapfuura akati kuti ino yechando yechando i "yakanyanya kunyorovera yechando yechando pane yekupedzisira." Brody akataurawo kuti kushanduka kwemitengo ye crypto kuri kukanganisa kukura kweindasitiri zvakanyanya kuderera mazuva ano. "Kekutanga, kukwira nekudzika kwemitengo hakuna kukanganisa kukuru mukukura kwenguva refu kweindasitiri," akadaro Brody.
Uyezve, a bepa 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.
Original source: Bitcoin.com