European Central Bank Officials Maintain Stance on Bitcoin, Asserting "Fair Value" at Zero

Despite Market Surges, ECB Representatives Remain Skeptical of Cryptocurrency's Worth

Feb 23, 2024 - 02:09
Feb 23, 2024 - 02:09
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European Central Bank Officials Maintain Stance on Bitcoin, Asserting "Fair Value" at Zero
European Central Bank Officials Maintain Stance on Bitcoin, Asserting

Despite recent market developments and the green light for spot Bitcoin ETFs in the US, two European Central Bank (ECB) officials, Ulrich Bindseil and J├╝rgen Schaaf, stand firm in their criticism of Bitcoin. In a blog post, they dismiss the recent surge in price and the growing popularity of Bitcoin ETFs as mere noise, reiterating their long-held belief that Bitcoin's "fair value is still zero."

Their skepticism endures despite the success of Bitcoin ETFs, which have seen inflows of over $3 billion and stirred talk of a potential Ethereum ETF. Bindseil and Schaaf argue that the prevailing excitement surrounding Bitcoin is misguided, asserting that its current price and market capitalization merely reflect the looming "social damage" poised to unfold when the bubble eventually bursts.

This is not the first instance of Bindseil and Schaaf airing their reservations about Bitcoin. Back in November 2022, they labeled it as being on the "path to irrelevance," citing issues like sluggish and costly transactions, unsuitable investment characteristics, and environmental concerns linked to mining. Moreover, they condemn Bitcoin for its purported history of price manipulation and fraud. Despite their critique, Bitcoin's value has surged by nearly 200% since their initial blog post.

The release of their latest blog entry has sparked intense reactions on Crypto Twitter, with some users expressing disbelief while others engage in impassioned debates over the merits of Bitcoin.

Also Read: Ether Leads Bitcoin as Hype Shifts to Next Wave of Crypto ETFs

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