The ECB Fiercely Attacks Cryptocurrencies: We Reveal Their Lies and Their True Intentions
In an article dated today, November 30, The European Central Bank (ECB) has carried out a strong attack on the world of cryptocurrencies and the blockchain. However, in it one sees a position loaded with prejudices, lies and ignorance. Will this be the start of an ECB “war” against cryptocurrencies?
On its official blog, the highest monetary authority on the European continent has just published a post in which Ulrich Bindseil, General Director of Market Infrastructures and Payments, and Jürgen Schaaf, Adviser to the General Directorate of that same department, carry out a Strong criticism of Bitcoin and, ultimately, of the entire cryptocurrency ecosystem. We are going to analyze step by step the arguments provided by the ECB and demonstrate that, once again, we are facing an attack by people who are completely unaware of what they are talking about. And what is, even more dangerous, are those in charge of dictating the rules that will govern our money.
The volatility of Bitcoin
Bindseil and Schaaf’s article begins their attack on Bitcoin with an argument that is more than familiar to all those who are interested in cryptocurrencies: its volatility. Speaking of the fall that it has suffered in the last year, when the BTC went from 69,000 dollars to its current value at almost 17,000.
Like any young market, which is still taking its first steps, it is logical that assets have strong fluctuations. If we compare it with the stock market, which has been running for more than 200 years (the New York Stock Exchange is 230 years old, for example), the cryptocurrency market has been around for just over a decade. In which its value has grown exponentially, representing an excellent opportunity for both professional investors and small savers.. According to experts, as the market matures, it will tend to have less volatility.
On the other hand, the ECB letter predicts a black future for the main cryptocurrency, assuring about the “apparent stabilization” in the price of BTC in the $20K range. “(…) it is more likely that it is an artificially induced last breath before the path to irrelevance”.
There have already been several bearish periods that Bitcoin has gone through, such as in 2011, 2015 and 2018. As has happened in traditional markets, for example, in 1929 (Wall Street crash), 1973 (oil crisis), 2000 (the.com bubble) and 2008 (financial crisis). All of them part of a normal cycle within the life of any asset and from which it has always emerged gracefully and strengthened.
Without going any further, this year publicly traded companies had similar falls (or even worse) than those of Bitcoin.
For example, Netflix fell 51.7%:
And Goal almost 67%:
There are not a few who, almost since the creation of Bitcoin, have tried to panic investors by saying that it would end up disappearing. They have all been wrong.
Bitcoin and its use
According to the Central Bank article, “Bitcoin is rarely used for legal transactions”. Besides being this one completely meaningless and easily refuted statementshows clearly that the authors of the note have a deep (and worrying) ignorance of the world of cryptocurrencies. Something that is clearly reflected throughout the text.
Cryptocurrencies are an excellent payment method for the purchase of all kinds of products and services, as an alternative to transfer money between users around the world, and even as a form of payment of salaries for remote workers.
Furthermore, the ignorance of the authors is completely exposed when they affirm that “actual Bitcoin transactions are cumbersome, slow, and expensive”. Something that is completely far from reality.
It should be noted that, despite the fact that the note only mentions Bitcoin, Perpetrators Seek to Attack the Entire Cryptocurrency World. Not knowing the characteristics and benefits that many of them provide.
Transactions with cryptocurrencies are extremely simple and fast to carry out. It is enough to know the wallet of the user to whom you want to send a message, choose one of the many available networks and enter the amount and currency you want to send. Behind all this, there are cryptographic systems that guarantee and validate the information to make the entire process safe for the parties. And, most importantly, in a decentralized way. allowing money can circulate around the world without legal or bureaucratic barriers imposed by banks or governments.
Regarding the cost of the transactions, these are infinitely cheaper than doing them through any bank. What is the best proof of this? The Twitter account @whale_alert keeps track of the most important money movements on the blockchain on a daily basis. Let’s see one from today:
— Whale Alert (@whale_alert) November 30, 2022
In this operation, 200 million dollars were transferred. The cost of the transaction? $3.30, a fee of 0.00000165%. Does it seem expensive to you? It seems that the ECB yes.
The real value of Bitcoin
Continuing with the endless list of lies that make up the Central Bank article, the authors state that “Bitcoin Market Valuation Is Based On Speculation Only”.
While many investors enter this market for the sole purpose of speculation (as is the case with every financial market in the world), Bindseil and Schaaf are completely unaware of the benefits of the underlying technology of all cryptocurrencies: the blockchain.
Bitcoin has been a pioneer in the development of blockchain technology, which has allowed an important advance not only in financial matters, but also in education, health, business management, banking and many others. The development of this technology is still in its early stages, having the potential to transform and revolutionize many sectors of today’s society.
The use of cryptocurrencies, mainly BTC, is the economic engine that allows the development of decentralized technology that is later applied to different sectors. Not knowing this is like thinking that shares are only speculative instruments without taking into account the companies behind them and everything they contribute to the economy and society.
In fact, in their ignorance, the ECB says that “these technologies have so far created limited value for society, no matter how great the expectations for the future.”
The environmental issue
In another section of his article, special attention is devoted to the environmental issue related to bitcoin mining. As they say “the Bitcoin system is an unprecedented polluter.” whatHow many articles will the now eco-friendly ECB have dedicated to criticizing industries such as mining, oil or technology for their impact on the environment?
Returning to the question, we are going to provide the data that the authors of the note do not seem to give at any time: According to a report from the Bitcoin Mining Council (BMC), 60% of the energy consumed by Bitcoin mining comes from renewable sources.. The data once again gives the lie to the ECB…
On the other hand, there is talk of technological waste generated by this activity. “produces mountains of hardware waste”, they affirm. Do they know how big is the mountain produced by the planned obsolescence carried out by technology companies like Apple, Microsoft or many others? Undoubtedly, infinitely superior to that of Bitcoin.
Also, cryptocurrencies are moving to mining systems without environmental impact, based on the so-called proof-of-stake, which does not require hardware. Just as Ethereum (the second most important crypto) has done this year.
The ECB wants firm regulation
Undoubtedly, the intention of the article of the European Central Bank it is not to warn users about the possible risks of bitcoin, but rather to serve as a pressure point to achieve more popular support when trying to tightly regulate the cryptocurrency market. Something that many governments are trying, with the aim of controlling and taxing the transactions that, thanks to cryptocurrencies, users can carry out simply and without intermediaries.
In this sense, it is mentioned that “While the EU has agreed to a comprehensive regulatory package with the Markets Regulations for Crypto Assets (MICA), Congress and the US federal authorities have not yet been able to agree on coherent rules.”. With this, the ECB is urging to speed up the imposition of much tougher regulation in the sectorcriticizing those who defend greater freedom that encourages innovation.
Going even further, the article sends a clear threatening message to those banks and financial institutions that allow their clients to trade cryptocurrencies: “the financial industry should beware of the long-term harm of promoting Bitcoin investments” As well as ensuring that banks are putting their reputations on the line by doing this.
It is striking that the ECB is now concerned about the reputation of banks. Or hasn’t it already been stained by the subprime mortgage crisis? Or with the HSBC money laundering scandal in Mexico? It is worth everyone’s reflection about the true interests behind these statements.
Different sectors are starting a strong initiative for governments and regulatory bodies to establish full control over the cryptocurrency industry. The ECB article by Bindseil and Schaaf is just the tip of the iceberg in a narrative that is gaining momentum in many countries.
The regulation seeks to attack the heart and essence of cryptocurrencies: decentralization. Being the communities themselves who regulate what happens within the blockchain, neither banks nor governments can control what each user does with their money or, ultimately, obtain the part of the pie that they would obtain from traditional systems.
Secondly, Different countries are starting to work on their own CBDCs, “cryptocurrencies” issued and backed by Central Banks. With which they will be able to control each transaction carried out by citizens and will have the power to approve or reject them at will.
This class of ECB articles seeks to pave the way for the implementation of this “programmable money”. What will be the last link in his attack against traditional cryptocurrencies.
That is why, with completely false arguments and that demonstrate the ignorance of those who governwe are facing an unprecedented advance that seeks to bring fear and confusion to cryptocurrency users.
This attempt will be one more in search of imposing iron control over people’s finances. However, decentralization and financial freedom have gained their space in society and, despite what the rulers want, cryptocurrencies are here to stay. And this is only the beginning…