Wednesday November 30, 2022, blog European Central A post published by the Bank of America (ECB) discusses Bitcoin, authors Ulrich Bindseil and Jürgen Schaaf appear to believe it is “Bitcoin’s last stand”. The ECB author goes on to say that while Bitcoin’s price is consolidated and stable, central bank officials say it’s “an artificially induced last gasp before the road to meaninglessness.” I said I said
European Central Bank Members Believe They Predicted Bitcoin Towards “Nothing” Before FTX Crashed
Central Bank of Europe Two members of the bank, Ulrich Bindseil General Director ECB’s Market Infrastructure and Payments Department and Jürgen Schaaf, Advisor to the ECB’s Payments Sector, wrote a blog post about the leading crypto asset Bitcoin (BTC). has been published.
The ECB blog post is titled “Bitcoin’s Last Stand“, in which writers argue that crypto assets are becoming irrelevant. Bindseil and Schaaf explain that the price ofBTChas fallen 76% from its all-time high of $69,000, and the authors argue that Bitcoin proponents believe that BTC I found myself thinking that I was “taking a breather.” Road to new heights.
ECB creators don’t think that will be the case this time. However, the authors of the ECB blog post argue that “but it is likely the last artificially induced gasp before the road to meaninglessness.” “And this was already foreseeable before FTX collapsed and bitcoin fell well below $16,000.”
It hasn’t been used much for realistic real-world transactions.” The ECB blog post adds:
Bitcoin is also not a good investment. It does not generate cash flows (like real estate) or dividends (like stock), cannot be used productively (like a commodity), or provide a social benefit (like gold). Bitcoin market valuations are therefore based purely on speculation.
ECB Officials Say Banks Promoting Bitcoin Take “Reputational Risk”, Blog Post Claims Regulation Does Not Mean “Approval”
Although the authors do not necessarily use the term, Bindseil Scharf and Scharf associate Bitcoin with a Ponzi or pyramid scheme, and the authors argue that “speculative bubbles are new funds.” is dependent on the influx of
“Large Bitcoin investors have the strongest incentive to stay euphoric,” claims the blog post writer. Regulatory policy has expanded around cryptocurrency assets, but two of his ECB officials believe that “regulation could be misinterpreted as approval.” Bindseil and Schaaf are less enthusiastic about the idea that the crypto space should be allowed to innovate “at all costs”.
Bitcoin’s innovative value, the ECB authors say, is little compared to the risks that are said to outweigh innovation.
First, the value that these technologies have brought to society so far has been limited. No matter how big your expectations are for the future. Secondly, the use of promising technologies is not a sufficient condition for the added value of products based on them.
Finally, central bank executives believe banks that promote Bitcoin carry reputational risks. ECB members believe that Bitcoin is neither a suitable investment nor a payment system, and therefore “should not be treated as either from a regulatory perspective and therefore should not be legalized.”
Bindseil and Schaaf’s blog posts are very similar to those of people like Peter Schiff and Charlie Munger. Year. Despite the ECB’s post of opinion, many individuals, academic papers, and companies have wholeheartedly opposed the two central bankers.
EY Blockchain Global Leader Paul Brody recently said that this crypto winter was “a much milder crypto winter than last year.” Brody also said that cryptocurrency price volatility has had much less impact on the growth of the industry these days. “For the first time in history, rising and falling prices have had less of an impact on the long-term growth of the industry,” he opined Brody.
In addition, he thesispublished by Matthew Ferranti, his Ph.D. at Harvard University. Economics Candidate Says Banks Should Hold A Bit of Bitcoin Ferranti said even central banks should consider holding bitcoin and, more specifically, central banks suffer financial sanctions depending on financial institutions’ access to gold reserves. .
What are your thoughts on his ECB blog post on Bitcoin’s so-called “last stand”? Do you agree with the European central bank officials? Let us know what you think about this subject in the comments section below.
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