- ECB advisors argue that Bitcoin has no inherent value, citing fraud, manipulation, and criminal activity as issues despite ETF approvals
- They warn of environmental damage from mining and potential losses for retail investors in another boom-bust cycle
- Bitcoin supporters dispute claims of criminal use and environmental harm, noting adoption for payments and price rebounds after past ECB criticism
European Central Bank (ECB) advisors Ulrich Bindseil and Jürgen Schaaf have published a blog post doubling down on their criticism of Bitcoin. They argue that recent ETF approvals do not change the fact that Bitcoin has failed as a decentralized cryptocurrency and has no inherent value.
ECB Advisors Dismiss Bitcoin as Fraudulent and Manipulated
In the blog published on the ECB’s website, Bindseil and Schaaf dismiss Bitcoin as “not suitable as a means of payment or as an investment.” They argue that Bitcoin has become a vehicle for fraud, manipulation, and criminal activity. The advisors insist Bitcoin’s fair value remains zero despite its recent price rally.
The ECB advisors warn that another boom-bust cycle would cause “massive” collateral damage to the environment and redistribute wealth to the detriment of “less sophisticated” retail investors. They argue that Bitcoin mining is wasteful and that transactions remain “inconvenient, slow and costly.”
Bitcoin Supporters Dispute Claims of Criminal Use and Environmental Damage
In response to the claims, Bitcoin advocates dispute that it is rarely used for payments or that mining damages the environment. Pierre Rochard of Riot Platforms argues that Bitcoin mining stabilizes energy grids. Others note that countries like El Salvador have adopted Bitcoin as legal tender, expanding its use as a payment method.
Climate tech investor Daniel Batton dismisses the post as “FUD,” arguing that previous ECB criticism has preceded strong Bitcoin price rallies. He claims 400 million people globally have now been “vaccinated” against anti-Bitcoin rhetoric.
ECB Remarks Follow Pattern of Marking Price Bottoms
The ECB blog post follows a similar post in November 2022 declaring Bitcoin’s “last gasp before irrelevance.” That post coincided with the bottom of the recent crypto bear market. Since then, Bitcoin has risen 225% from its lows below $16,000.
The ECB advisors suggest Bitcoin’s rally has been fueled by expectations of easing Fed policy, April’s upcoming “halving” event, and the launch of spot Bitcoin ETFs in the US. However, they maintain Bitcoin will eventually fall to its “fair value” of zero.
