“Bitcoin Irrelevance Was Predictable Before FTX Crash”


Key facts:
  • The European Central Bank considers bitcoins “cumbersome and slow” to make payments.

  • The entity links bitcoin to illegal transactions, but the data shows otherwise.

The European Central Bank (ECB) has decided to take a tough stance against Bitcoin (BTC). This appears to be prompted by the “widespread fallout in cryptocurrency markets following the collapse of a major cryptocurrency exchange,” according to the agency in a statement.

In this sense, he expressed, “For bitcoin apologists, apparent stability suggests an outlet on the way to new heights, but more likely it was a last artificial event before the road to irrelevance, and this was already expected before FTX went bankrupt.”

Although they did not mention it, the bankruptcy of the US stock exchange FTX clearly set off alarm bells in the European regulator. The company is being investigated He would use client money without his consentin risky operations, as reported by CriptoNoticias.

In this sense, the European Central Bank launched a campaign To criticize the cryptocurrency created by Satoshi NakamotoAccording to the text published today, November 30. Thus, he considers real Bitcoin transactions to be “cumbersome, slow and expensive. Bitcoin has never been used in any meaningful way for legal transactions in the real world.”

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The European Central Bank has launched a campaign to downplay Bitcoin, spurred on by the FTX crash.

This statement has been denied on several occasions, the most recent of which came from a report by cybersecurity firm Chainalysis. Cryptocurrency crime is down 15% year-over-year, and in a bear market like the one that occurred during the first half of 2022, Crime using Bitcoin and other crypto assets decreased by 65%.

For the European Central Bank, bitcoin is also not suitable as an investment compared to real estate, stocks or gold and its value is speculative. However, last October it was cryptocurrency less volatile The major stocks on Wall Street.

Bitcoin even fully entered Wall Street, when in 2021 3 Bitcoin exchange-traded funds, also known as ETFs for their acronym, arrived to become the year in whichFor the first time a cryptocurrency is introduced as a stock asset in the financial center of the world.

Additionally, there are studies such as the one by Harvard University, which recommend that central banks hold bitcoin reserves because it has the potential to act as an alternative hedge asset.

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The European Central Bank is taking this stance against bitcoin as it works to develop regulation for cryptocurrencies and service providers, something that could accelerate FTX’s downfall.

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