- The ECB claims Bitcoin remains illegitimate.
- Bitcoin has failed on multiple counts, stated the ECB.
- Bitcoiners fired back to defend BTC.
Bitcoin has faced its fair share of critiques from prominent organizations in the recent past, with the World Bank and International Monetary Fund having taken shots. In a renewal of Bitcoin FUD, the European Central Bank (ECB) becomes the latest organization to tear into BTC, casting doubt on the relevance of US ETFs while also warning of “massive collateral damage” once the speculative bubble pops.
ECB Turns Up Bitcoin FUD
The ECB’s Bitcoin stance dismissed claims that the US Securities Exchange Commission’s approval of BTC ETF products in January legitimized the leading cryptocurrency while declaring that the inevitable bust would lead to catastrophic social damage.
“The “market” capitalisation quantifies the overall social damage that will occur when the house of cards collapses,” cautioned the ECB.
The blog post further contended that Bitcoin falls short as a currency, citing its sluggish transaction speed and high fees. It also asserted that Bitcoin’s shortcomings extend to its role as a financial asset, as it cannot generate cash flow like real estate or stocks. Furthermore, the ECB argued that Bitcoin cannot be productively utilized in the manner of commodities and provides no social value.
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In contrast, the ECB stated that Bitcoin’s value is derived solely from price manipulation combined with the FOMO instinct of inexperienced investors. Worse still, criminals capitalize on BTC’s pseudo-anonymity for illicit purposes, including monetizing ransomware attacks and laundering dirty money.
Citing Chainalysis data, the authors highlighted the alarming extent of money laundering within the Bitcoin network, revealing a staggering $23.8 billion in 2022 alone. This figure represents a notable surge of 68% compared to the prior year.
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While the ECB hit on several “truths,” Bitcoiners dismissed the overarching message as “false propaganda.”
Bitcoiners Strike Back
Bitcoiners wasted no time shooting down the ECB’s Bitcoin stance, including YouTuber Ivan on Tech, who mentioned that the ECB’s “false propaganda” tweet is about to be community noted because the euro facilitates a greater proportion of money laundering than BTC.
Marketing advisor at Trust Machines, Dan Held, stated that the euro has lost 99% of its value against Bitcoin since 2016, making the ECB’s claims of BTC failing as currency puzzling to him.
Vertex Protocol ambassador CRG responded by inferring that bull cycles typically have FUD, and the ECB’s FUD attempt is a sign that the “Top is nowhere near.”
On the Flipside
- The ECB has historically been skeptical of digital assets, including publishing a post on BTC’s demise at the height of the bear market.
- Bitcoiners argue that BTC shifts power away from centralized entities such as banks.
Why This Matters
The ECB has unequivocally positioned itself against Bitcoin, citing concerns about illicit activities and sustainability. However, the growing support for Bitcoin largely stems from a broader loss of faith in traditional fiat currencies and society in general. Merely criticizing seemingly viable alternatives won’t restore that trust.
Read about BlackRock’s latest Bitcoin ETF promotion here:
BlackRock Pushes New Bitcoin ETF Ad as Accumulation Tops $6B
Find out more on expectations of an imminent altcoin surge here:
Altcoins Expected to “Go Parabolic” as RSI Nears Key Level
