In a paper against Bitcoin (BTC), 2 economists from the European Central Bank believe that the first holders of the asset are harming newcomers. We take stock.
2 ECB economists publish a paper against Bitcoin (BTC)
In an academic paper entitled “ The distributional consequences of Bitcoin », the economists of the European Central Bank (ECB) Jürgen Schaaf and Ulrich Bindseil deployed a succession of arguments highlighting the alleged dangers of a possible rise in the price of Bitcoin (BTC).
This is not the first time that the two parties have given their opinion on the subject, and finally, we can find the usual clichés already used over and over again. Nevertheless, we can find an original thought this time, according to which the early adopters of Bitcoin would harm those who do not yet have BTC in their wallet:
If the price of Bitcoin rises for good, Bitcoin’s existence would impoverish both non-holders and laggards.
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According to them, non-holders should therefore oppose the rise in prices:
In any case, current non-holders should realize that they have compelling reasons to oppose Bitcoin and advocate for legislation against it, aimed at preventing Bitcoin’s price rise or at see Bitcoin disappear completely.
However, the rise or fall of a price is the very foundation of a market economyregardless of the asset class.
Take the example of gold, to which Bitcoin is often compared. When euro coins and notes were launched on January 1, 2002, an ounce of gold was still worth 310 euros. Today, this same ounce is trading at a historic record of 2,504 euros. However, it would be absurd to say that non-gold holders should advocate for legislation against the rise in its price, under the pretext that inflation has completely devalued the value of the euro against this precious metal. .
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A lack of adoption?
Furthermore, a so-called lack of adoption of BTC in the real economy is highlighted, particularly taking the lack of use of the asset in El Salvador as an example.
While it is true that Bitcoin’s room for progress is still enormous, let’s also remember the relative youth of the protocol. Furthermore, this lack of adoption also depends on the point of view adopted. In a series of files published this summer, we returned to the use of BTC in Argentina in response to the successive failures of the Central Bank to maintain a stable currency.
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Even so, the asset will continue to face criticism from central bankers over the years, and only time will determine which view will be right.
At the time of writing these lines, BTC is trading at $68,400, up 0.28% over 24 hours.
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Source : SSRN
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
