The European Central Bank has published a blog post that smashes Bitcoin. The institution also shared that the value of Bitcoin is just speculation.
The cryptocurrency industry, which has gained great popularity around the world, has been a source of gain for some, while it has caused a deep loss for others. While this industry, which is extremely dangerous and bumpy, has recently suffered from the collapse of the FTX stock market, today from the European Central Bank An important announcement came.
The European Central Bank used worrying statements about Bitcoin in the article it published on its official blog. Central Bank of Bitcoin it’s just speculation stated; value of cryptocurrency will fall further suggested.
Highlights from the European Central Bank’s article:
Bitcoin’s value will drop further:
“The value of Bitcoin peaked at $69,000 in November 2021 and dropped to $17,000 by mid-June 2022. Since then, the value has fluctuated around $20,000 USD. For Bitcoin advocates, the apparent stabilization signals a respite on the way to new highs.
On the other hand, more likely, before the road to be out of place is an artificially stimulated last breath – and this was already predictable before FTX went bankrupt and drove Bitcoin price well below USD 16,000.”
“The value of Bitcoin is entirely dependent on speculation”
“In the mid-2010s, the hope that the value of Bitcoin would inevitably rise to new heights began to dominate the narrative. However, Bitcoin is also not suitable as an investment. It does not generate cash flows (such as real estate) or dividends (such as stocks), cannot be used productively (such as raw materials), or generate social benefits (such as gold). Bitcoin’s market cap is therefore purely speculation.”
“Bitcoin should not be treated legally, it should not be legitimated”
“Because Bitcoin does not seem appropriate either as a payment system or as a form of investment, it should not be treated legally and therefore not justified. Similarly, the financial industry should be wary of the long-term harms of incentivizing Bitcoin investments despite the short-term profits they can make. The negative impact on customer relationships and reputational damage across the industry could be huge after Bitcoin investors suffer further losses.”
Source :
https://www.ecb.europa.eu/press/blog/date/2022/html/ecb.blog221130~5301eecd19.en.html