Renowned analyst Tuur Demeester harshly criticized the ECB's newly released research paper (The Distributional Effects of Bitcoin), calling it a 'true declaration of war' against Bitcoin. This paper, authored by Ulrich Bindseil and Jürgen Schaaf, sparked widespread discussion in the Bitcoin community.
The report questions the core principles of Bitcoin, arguing that the growth in Bitcoin's value does not promote productive economic development. Instead, the report points out that the sustained increase in Bitcoin's value may lead to a wealth redistribution effect, where the consumption and wealth accumulation of early investors could leave others and later investors in relative poverty.
The authors of the paper explicitly stated that if Bitcoin prices continue to rise, it will inevitably lead to non-holders and later users falling into poverty, regardless of their trading timing or holding strategies. This viewpoint undoubtedly poses a severe challenge to the future of Bitcoin.
Criticism and concerns about the ECB report
As a board member of the Texas Bitcoin Foundation and a long-time analyst in the Bitcoin field, Tuur Demeester expressed deep concerns over the ECB's recently released report (The Distributional Effects of Bitcoin), believing it to be a 'true declaration of war' against Bitcoin.
Demeester expressed his concerns on social media platform X, stating: "The ECB's new report is essentially a declaration of war on Bitcoin, claiming that early adopters of Bitcoin have deprived later users of economic value. However, the government may also use this rhetoric to implement strict tax policies or direct bans."
Demeester further stated that he is concerned that regulators may take harsh measures to limit the growth and popularity of Bitcoin. He criticized: "The authors of the report have not viewed Bitcoin as a technological revolution like oil and the internet, but instead proposed a view similar to Ludditism, claiming that 'early adopters' have harmed the interests of later users by increasing their actual wealth and consumption."
Demeester also unreservedly criticized the ECB's intentions and the potential consequences of its report, noting: "The ECB openly advocates legislation aimed at 'curbing the rise of Bitcoin prices or making Bitcoin disappear entirely' to avoid so-called 'social division.'"
He condemned the ECB for its radical and unfounded approach to regulating Bitcoin, arguing that such measures indicate a broader agenda to undermine the decentralized financial system.
Demeester warned: "In my years of following Bitcoin, this is the most aggressive report released by the authorities. These ruthless central bank economists clearly view Bitcoin as an existential threat and are using all means to suppress it."
He further expressed concerns about the European Central Bank's stance, warning of potential long-term impacts: "Many of us have long foreseen that Bitcoin will become a major political divide in domestic and international elections. This means that we long-term holders must take action to ensure the government respects our property rights."
Demeester believes that this controversy is not just a regulatory challenge but a fundamental ideological conflict: "This will not be a war between the rich and the poor. Rather, it will be a historic conflict between those advocating for individual natural rights and those adhering to the failed ideologies of collectivism and central planning."
Other relevant investors' views
Dutch investor Marc van der Chijs also expressed concerns about the current regulatory trends, believing that Europe is waging a 'war' against Bitcoin investors. He pointed out that Italy has already increased capital gains tax on Bitcoin, the Netherlands plans to tax cryptocurrency exits, and in the UK, using cryptocurrency to buy a house doesn't even require a mortgage. Van der Chijs warned that the ECB's report seems to imply that Bitcoin holders are the source of poverty for others.
Van der Chijs criticized the ECB's stance, arguing that the success of early Bitcoin investors comes from their wise investments and willingness to take risks, rather than harming others. He stated that the ECB's stigmatization of these investors is absurd and dangerous, and such rhetoric sounds more like it comes from a central bank with extreme ideological views.
Van der Chijs worries that the surge in Bitcoin prices could lead to stricter punitive measures against investors. He pointed out: "Policies are rapidly turning against Bitcoin holders, and many Dutch Bitcoin holders are concerned. If Bitcoin doubles or triples in price by 2025, I expect more politicians to oppose Bitcoin and try to heavily tax it." He urged everyone to remain vigilant and prepare.
In response to the controversial report released by the ECB, Dennis Porter, CEO of the Satoshi Act Fund, plans to organize a comprehensive academic counterattack and has begun drafting an official response. He invited interested participants to join in hopes of quickly completing the draft and gathering more contributors.
Conclusion:
As the criticism of Bitcoin by the ECB intensifies, the Bitcoin community and its supporters are preparing for a fierce debate about the future of money and financial freedom. Concerns raised by prominent investors like Tuur Demeester and Marc van der Chijs not only highlight the regulatory challenges facing Bitcoin but also reflect potential threats to investor rights. The discussion sparked by the ECB report is both a test of Bitcoin's technological potential and a defense of its decentralized ideals.
While the ongoing debate and controversy add uncertainty to Bitcoin's future, they also present an opportunity for change. At this critical moment, the global Bitcoin community needs to unite more than ever to protect their property rights and the future of financial innovation. This debate is not only a challenge to Bitcoin but also a profound reflection on the entire financial system. Let us hope this discussion can bring about positive changes and open new paths for financial freedom and innovation.
