Earlier today, the European Central Bank published a blog post titled “Bitcoin’s Last Stand.” The post was written and published in an attempt to criticize Bitcoin and other cryptocurrencies, claiming that the cryptocurrency is on the verge of failing miserably or losing relevance because it has failed to produce a valid use case.
Even before the dramatic collapse of cryptocurrency exchange FTX, which forced lending platform BlockFi into bankruptcy and crippled its rival, Genesis Trading, senior officials Ulrich Bindseil and Jürgen Schaaf of the European Central Bank claimed in a blog post that Bitcoin was “on the road to irrelevance” and unable to sustain the inflow of new money that all speculative instruments rely on.
They claimed that its failure has only highlighted its lack of an essential use case because it is neither a store of value (due to its volatility and inability to generate returns) nor a medium of exchange, like fiat currency.
Furthermore, the blog post claimed that bitcoin (BTC) is used for little or no legal business and that the regulatory attention it is currently receiving from lawmakers and government officials around the world may be misinterpreted as “approval.”
It also warned banks not to deal with virtual currency because it could damage their reputations.
These claims and criticisms of Bitcoin, the world’s most popular cryptocurrency, did not sit well with members of the crypto community. Several crypto enthusiasts flooded the comments section of the official Twitter account of the European Central Bank with messages in support of cryptocurrencies. A Twitter user, @jtmooten, responded to the European Central Bank’s tweet in an attempt to defend Bitcoin, saying:
“The continuous lies and gaslighting of the @ECB will lead down a path of its own irrelevance. Bullish for #Bitcoin”.
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