The European Central Bank (ECB) officials don’t believe Bitcoin (BTC) has any value as a financial asset, even after the U.S. approval of a spot exchange-traded fund (ETF) for the cryptocurrency.
ECB’s Disapproval of Bitcoin
In a blog post, ECB director general Ulrich Bindseil and advisor Jürgen Schaaf stated that the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin spot ETF applications on January 10th doesn’t change the fact that Bitcoin is not suitable for payment or investment.
They believe Bitcoin is rarely used for payment, except by criminals for illicit transactions. They also criticize Bitcoin’s slow, inconvenient, and costly transactions, making it impractical for everyday use.
Bitcoin as an Investment
The ECB officials argue that Bitcoin is not a good investment either. They point out that it doesn’t generate cash flow, dividends, or productive use. It also lacks social benefits or subjective appreciation based on outstanding abilities, unlike real estate, stocks, commodities, gold jewelry, or works of art.
Additionally, Bitcoin mining using the proof-of-work mechanism is seen as environmentally harmful, with higher Bitcoin prices leading to increased energy consumption.
Venture Capitalist’s Response
Venture capitalist and former Coinbase CTO Balaji Srinivasan responded to the ECB’s statements by sharing a long-term chart of the BTC/EUR pair on social media, suggesting that the Euro has collapsed against Bitcoin.
Current Bitcoin Value
At the time of writing, Bitcoin is valued at $51,105.
