In a post on X on Oct. 20, adviser to the Senior Management of the Market Infrastructure and payments business area of the ECB, J\u00fcrgen Schaaf, labeled Bitcoin \u201ca speculative bubble that will eventually burst.\u201d<\/p>\n
He claimed that this would leave behind \u201csubstantial social damage amid its high energy use and facilitating illicit payments.\u201d<\/p>\n
The anti-Bitcoin tirade follows a paper<\/a> from the European Central Bank, co-written by Schaaf last week, claiming that long-term BTC holders were making newer market participants poorer.<\/p>\n Schaaf claimed that even if Bitcoin prices keep rising and the bubble doesn\u2019t burst, \u201cthe wealth gains by early adopters come at the expense of latecomers or non-holders.\u201d<\/p>\n This leads to \u201csignificant redistribution effects,\u201d he added before making an even wilder claim:<\/p>\n \u201cEarly holders\u2019 wealth and consumption rise while others get poorer, regardless of whether they ever own Bitcoin.\u201d<\/p>\n He also claimed that this wealth redistribution could \u201cdestabilize society\u201d as latecomers will feel frustrated as their purchasing power erodes.<\/p>\n The central bank adviser\u2019s solution was simple: eliminate Bitcoin.<\/p>\n \u201cNon-holders should recognize that Bitcoin\u2019s rise is fuelled by wealth redistribution at their expense. There are compelling reasons to advocate for policies that curb Bitcoin\u2019s growth or even eliminate it.\u201d<\/p>\n 11\/ In democracies, Bitcoin could influence elections. Crypto-friendly candidates may gain support from early adopters, swaying outcomes in favour of policies that harm non-holders.<\/p>\n \u2014 J\u00fcrgen Schaaf (@schaaf_jurgen) October 20, 2024<\/a><\/p>\n\n Steven Smith, CEO of Celestial Mining Management, made a good counterargument in that the marginal sellers and buyers determine the value of BTC.<\/p>\n \u201cThe whole point is that we don\u2019t have bureaucrats bloviating or intervening at everyone else\u2019s expense based on what they think is \u2018fair\u2019 or \u2018good\u2019 or whatever.\u201d<\/p>\n He added that simple properties such as this make BTC<\/a> so valuable that a sufficient portion of humanity will choose to store their wealth in it \u201cas opposed to other instruments which people like you [central banks] directly or indirectly control through the debt-money systems.\u201d<\/p>\n Central Banks are all about controlling debts and monetary value, so decentralized assets controlled by the people are a major threat<\/a> to them.<\/p>\n Furthermore, the ECB is pushing a programmable digital euro CBDC (central bank digital currency) that will be highly controlled and used only for payments<\/a>, not investing or holding.<\/p>\n The United States Federal Reserve Bank of Minneapolis suggested something similar in a paper last week. Bitcoin should be taxed or banned because it prevents the government from effectively managing its debts through \u201cpermanent deficits,\u201d it claimed<\/a>.<\/p>\n In reality, central bank and government money printing and questionable fiscal policies make people poorer through inflationary cycles and the gradual devaluation of their fiat currencies, not Bitcoin.<\/p>\n The post \u2018Eliminate Bitcoin:\u2019 ECB Fears Highlighted in Latest Anti-BTC Tirade<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" In a post on X on Oct. 20, adviser to the Senior Management of the Market Infrastructure and payments business area of the ECB, J\u00fcrgen Schaaf, labeled Bitcoin \u201ca speculative bubble that will eventually burst.\u201d He claimed that this would leave behind \u201csubstantial social damage amid its high energy use and facilitating illicit payments.\u201d The […]<\/p>\n","protected":false},"author":0,"featured_media":15228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-15227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/15227"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15227"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/15227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/15228"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Central Bank Bitcoin Tirade<\/h2>\n
Why Central Banks Hate Bitcoin<\/h2>\n