{"id":814143,"date":"2024-12-23T01:23:36","date_gmt":"2024-12-23T07:23:36","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2024\/12\/23\/ecb-officials-urge-bitcoin-latecomers-non-holders-to-oppose-bitcoin-and-advocate-for-legislation-against-it\/"},"modified":"2024-12-23T01:23:36","modified_gmt":"2024-12-23T07:23:36","slug":"ecb-officials-urge-bitcoin-latecomers-non-holders-to-oppose-bitcoin-and-advocate-for-legislation-against-it","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2024\/12\/23\/ecb-officials-urge-bitcoin-latecomers-non-holders-to-oppose-bitcoin-and-advocate-for-legislation-against-it\/","title":{"rendered":"ECB officials urge Bitcoin latecomers, non-holders to oppose Bitcoin and advocate for legislation against it"},"content":{"rendered":"<p>Bitcoins <\/p>\n<div data-id=\"151319\" data-url=\"https:\/\/cryptobriefing.com\/bitcoin-wealth-redistribution-ecb\/\">\n<section>\n<div>\n<p><a href=\"https:\/\/cryptobriefing.com\/bitcoin\/\" rel=\"tag\"><br \/>\n                    Bitcoin                <\/a>\n                    <\/p>\n<\/div>\n<p><span><span><a href=\"https:\/\/cryptobriefing.com\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/cryptobriefing.com\/bitcoin\/\">Bitcoin<\/a><\/span> \u00bb <span aria-current=\"page\">ECB officials urge Bitcoin latecomers, non-holders to oppose Bitcoin and advocate for legislation against it<\/span><\/span>        <\/p>\n<div>\n<div>\n<p><span>by<\/span><\/p>\n<div>\n<p><a data-author_id=\"29816\" href=\"https:\/\/cryptobriefing.com\/team\/vivian-nguyen\/\" rel=\"author\">Vivian Nguyen<\/a><\/p>\n<\/div><\/div>\n<p><time datetime=\"2024-10-19T19:54:20+00:00\"><br \/>\n                        Oct. 19, 2024                    <\/time>\n                            <\/p>\n<\/p><\/div>\n<\/section>\n<section>\n<h2>Bitcoins The new report claims Bitcoin&#8217;s rise redistributes wealth from latecomers to early adopters.<\/h2>\n<\/section>\n<section>\n            <picture><source media=\"(min-width: 850px)\" ><img decoding=\"async\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2024\/10\/19144347\/img-z4JveofAgtthjMQz72FzZYwj-400x228.jpg\" alt=\"bitcoins Bitcoin symbol splitting, representing wealth redistribution between early adopters and latecomers\" title=\"bitcoins img-z4JveofAgtthjMQz72FzZYwj\">\n            <\/picture>\n        <\/section>\n<section>\n<section>\n<h3>Key Takeaways<\/h3>\n<ul>\n<li>ECB officials argue Bitcoin&#8217;s rise redistributes wealth from latecomers to early adopters.<\/li>\n<li>The report urges non-holders to advocate for legislation against Bitcoin to protect their wealth.<\/li>\n<\/ul>\n<\/section>\n<section>\n<p>Share this article<\/p>\n<\/section>\n<p>        <?xml encoding=\"UTF-8\"><\/p>\n<p>Those who have been late to Bitcoin or don\u2019t own the coin have good reasons to oppose it and advocate legislation to protect themselves from its negative consequences of wealth redistribution, according to a recent <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4985877\" target=\"_blank\" rel=\"noopener nofollow noreferrer\"><u>analysis<\/u><\/a><u> <\/u>authored by ECB officials Ulrich Bindseil and J\u00fcrgen Schaff.<\/p>\n<p>The authors, who said Bitcoin\u2019s February price rally was <a href=\"https:\/\/cryptobriefing.com\/bitcoin-price-rally-driven-manipulation-criminal-acts-inadequate-regulation\/\" target=\"_blank\" rel=\"\"><u>driven by price manipulation<\/u><\/a> in an earlier report, claim Bitcoin has shifted from its original vision as a decentralized payment system to primarily an investment asset.<\/p>\n<p>The argument is backed by the growing support for Bitcoin from high-profile figures like BlackRock CEO Larry Fink or Galaxy Digital\u2019s founder Mike Novogratz, who view Bitcoin as a pure investment asset. Their perspective is that Bitcoin\u2019s limited supply and growing demand will drive its price up, similar to gold.<\/p>\n<p>However, ECB officials assert that Bitcoin\u2019s limited supply doesn\u2019t guarantee sustained price increases, contrary to popular belief among crypto supporters.<\/p>\n<blockquote>\n<p>\u201cThere are countless assets on earth with a limited or finite supply, and for none of them the notion that they can sustain an ever-increasing valuation over the long term, regardless of the services or benefits they provide to society, is particularly plausible,\u201d the report states.<\/p>\n<\/blockquote>\n<blockquote>\n<p>\u201cProponents of the Bitcoin investment perspective ignore the fact that \u201cscarcity\u201d describes the relationship between supply and demand. A limited, finite supply does not equate to scarcity. In the context of Bitcoin with its limited and fixed supply the non-economic term \u201crarity\u201d seems more appropriate. If supply is fixed, the price becomes exclusively dependent on demand. And if the demand were to disappear, the price would be zero,\u201d it says.<\/p>\n<\/blockquote>\n<p>The authors warn that even in a scenario where Bitcoin\u2019s value continues to rise, it could lead to negative economic consequences if not justified by the underlying fundamentals. They argue that Bitcoin doesn\u2019t enhance the economy\u2019s productive capacity, and any wealth generated by Bitcoin holders comes at the expense of others in society.<\/p>\n<blockquote>\n<p>\u201cThis redistribution of wealth and purchasing power is unlikely to occur without detrimental consequences for society,\u201d the report claims.<\/p>\n<\/blockquote>\n<blockquote>\n<p>\u201cEarly adopters have a vested interest in promoting Bitcoin values to redistribute wealth and consumption from latecomers to themselves, maybe without being conscious of the redistributive nature of their vision,\u201d it states.<\/p>\n<\/blockquote>\n<blockquote>\n<p>\u201cIn any case current non-holders should realize that they have compelling reasons to oppose Bitcoin and advocate for legislation against it, aiming to prevent Bitcoin prices from rising or to see Bitcoin disappear altogether. Latecomers and non-holders and their political representatives should emphasize that the idea of Bitcoin as an investment relies on redistribution at their expense,\u201d it adds.<\/p>\n<\/blockquote>\n<p>The authors also warn that failing to do so could lead to electoral outcomes favoring politicians who support pro-Bitcoin policies, which could exacerbate wealth inequality and societal divisions by promoting a system that benefits early adopters while disadvantaging latecomers and non-holders.<\/p>\n<h2>Bitcoins <strong>Is the ECB declaring war on Bitcoin?<\/strong><\/h2>\n<p>It\u2019s not the first time ECB officials have shown their skepticism towards Bitcoin. As Crypto Briefing <a href=\"https:\/\/cryptobriefing.com\/bitcoin-price-rally-driven-manipulation-criminal-acts-inadequate-regulation\/\" target=\"_blank\" rel=\"\">reported<\/a>, ECB officials previously likened the approval of US Bitcoin ETFs to the \u2018Naked Emperor\u2019s New Clothes.\u2019<\/p>\n<p>The ECB faced social backlash as soon as the paper surfaced. Wall Street veteran Max Keiser criticized the paper for making false claims about Bitcoin\u2019s original purpose.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The <a href=\"https:\/\/twitter.com\/ecb?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">@ecb<\/a> makes a rookie mistake by claiming Bitcoin originated as a payment means. This is false. The word \u2018Cash\u2019 in the White Paper refers to money, as in Gold, not fiat currency. Bitcoin has always been digital Gold. <\/p>\n<p>Satoshi makes this clear in subsequent posts &#038; messages. <a href=\"https:\/\/t.co\/qEMhoNDWpE\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">pic.twitter.com\/qEMhoNDWpE<\/a><\/p>\n<p>\u2014 Max Keiser (@maxkeiser) <a href=\"https:\/\/twitter.com\/maxkeiser\/status\/1847669133309333953?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">October 19, 2024<\/a><\/p>\n<\/blockquote>\n<p><script type=\"rocketlazyloadscript\" async data-rocket-src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Blockstream advisor Tuur Demeester, who first brought the paper to public attention, believes the ECB\u2019s paper is \u201ca true declaration of war\u201d and that authorities will use it to justify harsh taxes or bans on Bitcoin.<\/p>\n<p><html><body><\/p>\n<div class=\"ad-banner mrec-in-article\"><\/div>\n<p><\/body><\/html><\/p>\n<p>Demeester warns that the paper could have serious consequences for Bitcoin and its supporters, urging holders to take action to protect the rights of individuals to hold Bitcoin.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">1\/ This new paper is a true declaration of war: the ECB claims that early <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">#bitcoin<\/a> adopters steal economic value from latecomers. I strongly believe authorities will use this luddite argument to enact harsh taxes or bans. Check ???? for why: <a href=\"https:\/\/t.co\/qg31YenTSC\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">pic.twitter.com\/qg31YenTSC<\/a><\/p>\n<p>\u2014 Tuur Demeester (@TuurDemeester) <a href=\"https:\/\/twitter.com\/TuurDemeester\/status\/1847512241173582058?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">October 19, 2024<\/a><\/p>\n<\/blockquote>\n<p><script type=\"rocketlazyloadscript\" async data-rocket-src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Following critical remarks by the ECB in February, Bitcoin established a new record high in mid-March. After the rally, Bitcoin experienced price corrections but it remains solid above $45,000.<\/p>\n<p>Bitcoin is currently trading at around $68,100, up over 60% year-to-date, <a href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">per TradingView<\/a>.<\/p>\n<section class=\"article-share\">\n<p>Share this article<\/p>\n<div class=\"social-icons\">\n          <button class=\"social-icon share\" data-href=\"https:\/\/x.com\/intent\/tweet?text=ECB+officials+urge+Bitcoin+latecomers%2C+non-holders+to+oppose+Bitcoin+and+advocate+for+legislation+against+it&#038;url=https%3A%2F%2Fcryptobriefing.com%2Fbitcoin-wealth-redistribution-ecb%2F&#038;via=crypto_briefing\" aria-label=\"Share on x\"><br \/>\n        <?xml version=\"1.0\" encoding=\"UTF-8\"?><br \/>\n                <svg width=\"40px\" height=\"40px\" viewBox=\"0 0 40 40\" version=\"1.1\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\">\n                <g id=\"surface1\">\n                <path style=\" stroke:none;fill-rule:nonzero;fill:rgb(0%,0%,0%);fill-opacity:1;\" d=\"M 17.867188 0.148438 C 10.839844 0.878906 4.558594 5.507812 1.707031 12.054688 C -0.132812 16.28125 -0.441406 21.148438 0.867188 25.625 C 2.480469 31.214844 6.652344 35.933594 12.054688 38.292969 C 16.28125 40.132812 21.148438 40.4375 25.628906 39.132812 C 32.332031 37.199219 37.613281 31.695312 39.347656 24.851562 C 42.054688 14.132812 35.414062 3.171875 24.667969 0.613281 C 22.304688 0.0546875 20.226562 -0.09375 17.867188 0.148438 Z M 18.132812 12.535156 C 19.839844 14.800781 21.28125 16.667969 21.332031 16.667969 C 21.386719 16.667969 23.160156 14.800781 25.253906 12.535156 L 29.078125 8.398438 L 31.253906 8.398438 L 30.785156 8.894531 C 30.519531 9.171875 28.785156 11.054688 26.933594 13.066406 C 25.078125 15.078125 23.265625 17.039062 22.90625 17.398438 L 22.265625 18.078125 L 27.265625 24.734375 C 30.011719 28.398438 32.265625 31.441406 32.265625 31.492188 C 32.265625 31.558594 30.628906 31.601562 28.640625 31.601562 L 25 31.585938 L 21.613281 27.054688 C 19.28125 23.921875 18.1875 22.574219 18.078125 22.652344 C 18 22.71875 16.105469 24.761719 13.867188 27.1875 L 9.800781 31.601562 L 8.773438 31.601562 C 8.199219 31.601562 7.734375 31.574219 7.734375 31.535156 C 7.734375 31.492188 9.851562 29.171875 12.441406 26.386719 C 15.011719 23.601562 17.148438 21.265625 17.171875 21.226562 C 17.1875 21.171875 15.066406 18.28125 12.464844 14.800781 C 9.867188 11.332031 7.734375 8.464844 7.734375 8.441406 C 7.734375 8.414062 9.371094 8.398438 11.386719 8.398438 L 15.039062 8.398438 Z M 18.132812 12.535156 \" \/>\n                <path style=\" stroke:none;fill-rule:nonzero;fill:rgb(0%,0%,0%);fill-opacity:1;\" d=\"M 11.027344 10.1875 C 11.082031 10.28125 14.441406 14.785156 18.464844 20.171875 L 25.800781 29.988281 L 27.441406 30 C 28.453125 30 29.066406 29.945312 29.039062 29.867188 C 29.027344 29.800781 25.679688 25.292969 21.628906 19.867188 L 14.238281 10 L 12.585938 10 C 11.214844 10 10.933594 10.027344 11.027344 10.1875 Z M 11.027344 10.1875 \" \/>\n                <\/g>\n                <\/svg>      <\/p>\n<\/section>\n<\/div>\n<p> Vivian Nguyen <a href=\"https:\/\/cryptobriefing.com\/bitcoin-wealth-redistribution-ecb\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin Home \u00bb Bitcoin \u00bb ECB officials urge Bitcoin latecomers, non-holders to oppose Bitcoin and advocate for legislation against it by Vivian Nguyen Oct. 19, 2024 The new report claims Bitcoin&#8217;s rise redistributes wealth from latecomers to early adopters. Key Takeaways ECB officials argue Bitcoin&#8217;s rise redistributes wealth from latecomers to early adopters. The report<\/p>\n","protected":false},"author":1,"featured_media":814144,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4041,348],"tags":[11476],"class_list":{"0":"post-814143","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"category-officials","9":"tag-bitcoins"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/814143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=814143"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/814143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/814144"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=814143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=814143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=814143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}