The European Central Bank (ECB) has published an article criticizing Bitcoin, drawing a strong reaction from leading Bitcoin analyst Tuur Demeester.
According to Demeester, the ECB paper describes Bitcoin as a threat and claims that early adopters are “stealing economic value” from later participants in the market.
Demeester sees this criticism as a move to justify possible harsh regulations, such as heavy taxes or a complete ban on Bitcoin.
Demeester called the ECB’s stance “stupid,” criticizing the bank for failing to see Bitcoin as a technological paradigm shift akin to the internet or the oil industry. Instead, the ECB argues that early adopters have increased their wealth and consumption at the expense of latecomers. Demeester argues that this portrayal ignores the technological advantages that have driven Bitcoin’s growth over the past 15 years.
The ECB’s paper reportedly advocates legislation to prevent Bitcoin prices from rising and even see Bitcoin “disappear altogether” to avoid what it describes as “a fragmentation of society.” Demeester noted that the authors also included models that predicted a small amount of Bitcoin would be available to new entrants, painting a dire picture for late adopters. Criticizing this view, Demeester said that Bitcoin adoption has always been about its technological superiority and utility.
Demeester expressed concern that this was the most aggressive stance taken by authorities against Bitcoin since he began monitoring the space, warning that central bank economists now view Bitcoin as an existential threat and may resort to any means necessary to counter it.
Demeester concluded by arguing that the issue is not simply a divide between the rich and the less fortunate, but rather a battle over basic individual rights. For Demeester, the conflict represents a struggle between advocates of individual freedom and advocates of “collectivism and central planning.”
*This is not investment advice.
