ECB: Early Bitcoin Adopters Exploit New Holders

The ever-increasing price of the first cryptocurrency will benefit only early asset holders and lead to the impoverishment of the rest of society, threatening cohesion, stability, and democracy. This is stated in a report by the ECB.

Economists Ulrich Bindseil and Jürgen Schaaf argue that Satoshi Nakamoto’s original idea of Bitcoin as an international payment system has failed, leading to its repositioning as an investment asset.

According to the ECB document, later users of the first cryptocurrency may incur losses even without a “burst bubble” scenario. They will benefit solely at the expense of new buyers, the experts noted.

“The new Lamborghinis, Rolexes, villas, and stock portfolios of early Bitcoin investors are not linked to an increase in the productive capacity of the economy, but rather financed by reducing the consumption and welfare of those who initially do not own Bitcoin,” the report states.

This redistribution of wealth is unlikely to occur without detrimental consequences for society, the economists added.

Early Bitcoin follower Tuur Demeester criticized the document, calling it “a true declaration of war.”

1/ This new paper is a true declaration of war: the ECB claims that early #bitcoin adopters steal economic value from latecomers. I strongly believe authorities will use this luddite argument to enact harsh taxes or bans. Check ? for why: pic.twitter.com/qg31YenTSC

— Tuur Demeester (@TuurDemeester) October 19, 2024

“In all the years I’ve been following the Bitcoin industry, this is undoubtedly the most aggressive article from the authorities. […] It is clear that these central bank economists now see Bitcoin as an existential threat that can be attacked by any means possible,” he wrote.

The expert noted that authorities will use the arguments presented in the ECB report to impose harsh taxes or bans in the crypto industry.

“Many of us warned this would happen: Bitcoin as the main political fault line in both national and international elections. Well, here it is. This means we, the hodlers, must take measures to ensure governments respect our fundamental right to own property,” Demeester added.

According to him, this will not be “a war between the haves and the have-nots.”

“Rather, it will be a historic clash between those who uphold natural human rights and those who cling to failed ideologies of collectivism and central planning,” emphasized the Bitcoin evangelist.

In November 2023, ECB President Christine Lagarde admitted that her son lost “almost everything” on cryptocurrency investments, despite numerous warnings.

In February 2024, ECB experts reaffirmed their view of Bitcoin’s “zero value”, despite the approval of spot Bitcoin ETFs in the US.

Back in the same month, Tuur Demeester predicted the rise of the first cryptocurrency’s price to $600,000 by 2026.