The post ECB’s Attack on Bitcoin Backfires! Here’s Why Experts Are Furious appeared first on Coinpedia Fintech News
A group of researchers, Dr. Murray A. Rudd, Dennis Porter, Allen Farrington, and Freddie New (from Satoshi Action Education, Axiom and Bitcoin Policy UK) has strongly denounced a European Central Bank paper, that criticized the viability and economic impact of Bitcoin. The development has triggered a discussion on the matter. Let’s try to understand the scenario!
Bitcoin Criticised by ECB: Key Concerns
The ECB report leveled several serious allegations against Bitcoin. It dismissed Bitcoin as a mere speculative asset lacking intrinsic value. It also presented Bitcoin as a tool for wealth concentration. Additionally, it questioned the ability of BTC to boost economic productivity.
Researchers Defend Bitcoin’s Purpose and Value
The researchers have challenged all the arguments made by the ECB against Bitcoin.
To counter the ECS’s wealth concentration argument, the researchers highlight that large Bitcoin wallets often represent holdings for multiple clients via exchanges.
Dismissing the ECB’s claim related to economic productivity, they have emphasized the technological advancements achieved in the innovative areas of cryptography and decentralized finance.
Countering the ECB’s argument questioning Bitcoin’s value, they explain how Bitcoin is different from traditional currencies in terms of value. They state that the key element that decides the value of BTC is scarcity. They liken Bitcoin to Gold – the one that holds value despite lacking cash flows.
ECB’s Potential Bias Towards CBDC’s
The researchers have exposed the biased nature of the allegations made by the ECB. They have expressed doubt that it is the ECB’s intention to promote CBDCs that motivated their harsh criticism of BTC.
Volatility is Natural for Emerging Technologies
The researchers acknowledge the argument that Bitcoin is a volatile asset. However, they have defended the volatile nature of BTC, stating that fluctuations are expected during early adoption phases.
In conclusion, Bitcoin, despite all these odds including regulatory pressure, has survived and demonstrated exceptional performance, outperforming most traditional assets. This alone underscores the growth potential of BTC.
Stay tuned to Coinpedia for more crypto stories!
