The European Central Bank (ECB) has published an economic paper on bitcoin (BTC) titled The Distributional Implications of Bitcoin.
Analysts called it a declaration of war on #Bitcoin or a logical leap to the ECB's takeover of #BTC .
The ECB, however, never once expressed an intention to buy BTC. Instead, the article, written by Ulrich Bindseil and Jürgen Schaaf, offers a harsh economic critique of Bitcoin's value proposition, even when considering a bullish scenario in which the price of BTC is steadily rising.
An analyst Tuur Demester called the recent article a real declaration of war with potential negative consequences. This long-term bitcoin analyst believes that this could spur more aggressive harmful measures against BTC as an investment asset in Europe.
As noted in the DLNews article, Italy has already made it clear what could happen to bitcoin. That European country recently announced a capital gains tax increase on BTC from 26% to 42%, which has curbed speculation on the bitcoin price. In the U. S. , presidential candidate Kamala Harris also advocates raising capital gains tax on stocks and #cryptocurrencies .
n Moreover, on October 12, European Central Bank economists Bindseil and Schaaf published a paper titled The Distributional Consequences of Bitcoin.
Previously, these two ECB officials had already published papers criticizing bitcoin.
According to Finbold, the ECB warned that bitcoin is on a path to irrelevance in 2022 and called the BTC #ETF in 2024 the naked emperor's new clothes.
economists have described how bitcoin has evolved from Satoshi Nakamoto's original idea into an investment asset promising profits to all buyers. As noted above, this transition, unsupported by any real economic proposition other than a speculative bubble, makes bitcoin a financial bubble that will burst sooner or later.
This article, however, focuses on what BTC promoters envision as the best-case scenario: continued price growth.
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