The recent critique of Bitcoin by representatives of the European Central Bank (ECB) has garnered attention across social media platforms within the cryptocurrency community. Notably, high-ranking officials from the ECB likened Bitcoin to a “naked emperor” amidst the surge in interest surrounding Bitcoin Exchange-Traded Funds (ETFs) in the United States. Esteemed figures within the realm of venture capitalism, such as former Coinbase Chief Technology Officer Balaji Srinivasan, have responded to this persistent hostility from prominent EU financial overseers.
The Euro has collapsed against Bitcoin. https://t.co/5gBWrDXJNz pic.twitter.com/xC2dtA8p1h
— Balaji (@balajis) February 22, 2024
Balaji, in a demonstration utilizing historical data on the BTC/EUR pairing, underscored a significant trend suggesting Bitcoin’s perceived superiority as a store of value compared to the Euro. Employing a tone that blended irony with substance, he drew attention to yet another vociferous critique of Bitcoin shared by the ECB.
Since the inception of Bitcoin, the Euro has experienced a remarkable depreciation, surpassing a staggering 99% against the leading cryptocurrency. This phenomenon led Balaji to assert that the Euro has effectively “collapsed” in its valuation when juxtaposed with Bitcoin. Gabor Gurbacs, a seasoned cryptocurrency advisor affiliated with VanEck and Tether Limited, echoed these sentiments, emphasizing the significance of Bitcoin ETF approvals, particularly in the United States, and cautioning against dismissing their implications. He warned European regulators that opposition to Bitcoin could potentially result in falling behind in the rapidly evolving financial landscape.
Moreover, Gurbacs highlighted the fallacious nature of certain assertions made by the ECB regarding Bitcoin. The ECB’s periodic issuance of reports critical of Bitcoin’s viability as an investment, medium of exchange, and store of value has become a familiar occurrence. Drawing upon conventional arguments concerning the risks associated with Proof of Work (PoW) mining, concerns over illicit financing, and allegations of market manipulation, these reports strive to delegitimize Bitcoin’s role within the financial ecosystem.
For instance, in a report released in November 2023, ECB experts projected a trajectory for Bitcoin’s obsolescence, citing concerns over its purported association with criminal activities. In a recent publication authored by Ulrich Bindseil and Jürgen Schaaf, both holding prominent positions within the ECB, familiar narratives were reiterated, characterizing Bitcoin as a facilitator of illicit transactions and highlighting its perceived inefficiencies, particularly in terms of transaction speed and cost. Additionally, the report reiterated concerns over the environmental impact of Bitcoin mining, drawing parallels between its energy consumption and that of entire nations.
