Bitcoin last traded at $17,000 on November 30. This figure is three times lower than the current $51,500. However, reactions against spot Bitcoin ETF products continue. The European Central Bank (ECB) has published a new blog criticizing Bitcoin (BTC).
ECB: BTC failed, Bitcoin ETF does not change this fact!
In this latest article, the authors liken the approval of Bitcoin ETF products in the US to “the naked emperor’s new clothes”. They state that Bitcoin has failed as a global decentralized digital currency. Authors Ulrich Bindseil and Jürgen Schaaf make the following statement:
Bitcoin has failed in its promise to become a global decentralized digital currency and is still almost never used for legitimate transfers. The latest approval of an ETF does not change the fact that Bitcoin is not suitable as a means of payment or investment.
According to the European Central Bank, the fair value for BTC is zero. So, in the words of the establishment, the boom-bust cycle described will lead to massive collateral damage and redistribution of wealth.
ECB doubles down on previous criticism of Bitcoin
cryptokoin.comAs you follow from , the ECB discussed these issues in its article titled “Bitcoin’s Final Stand” dated November 30. Now the European Central Bank argues that some of the concerns expressed at the time have recently been confirmed. First, they reiterate that “Bitcoin transactions are cumbersome, slow and costly.” Meanwhile, one Bitcoin transaction fee reached the average global daily revenue on December 6.
On the other hand, the ECB again talks about how the use of Bitcoin intensifies criminal activities. However, a Chainalysis report found that only 0.34% of all cryptocurrency trading volume from 2018 to 2023 belonged to illegal activities.
In addition, the central bank criticizes Bitcoin as “unsuitable as an investment.” It also warns about issues related to mining and PoW.
Manipulation and speculative bubble
Moreover, the ECB makes serious accusations of historical price manipulation “and other forms of fraud”. The article mentions fraud and fraud committed by central organizations. Additionally, fake centralized exchange volume claims show that these problems arise when there is centralized influence on the cryptocurrency market. A report previously published by Forbes announced that more than half of Bitcoin transactions in 2022 will be fake. In this regard, the report drew attention to the following points:
More than half of all reported trading volume is likely to be fraudulent or uneconomic trading volume. Forbes estimates global daily Bitcoin volume for the industry at $128 billion on June 14. That’s 51% less than the $262 billion it would generate by adding up self-reported volumes from multiple sources.
As a result, the ECB describes BTC as a speculative bubble. Thus, he warns, “it is not an indicator of the sustainability of the price level.” The European Central Bank is urging Bitcoin investors to be cautious and centralize regulatory interventions.
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