Summary
TLDR: Two ECB officials are not impressed by the approval of spot Bitcoin ETFs in the U.S., claiming Bitcoin investments are not safe and have a fair value of zero. They believe Bitcoin transactions are slow and costly, not a suitable investment, and contribute to environmental pollution. They also claim Bitcoin is characterized by price manipulation and fraud, and predict a collapse of the market. Despite this, Bitcoin’s market capitalization is $1 trillion and trading at $51,645.91.
Key Points
1. Two European Central Bank officials, Ulrich Bindseil and Jürgen Schaaf, expressed skepticism towards the approval of spot Bitcoin ETFs in the U.S., despite their success in attracting significant investment flows.
2. The ECB officials reiterated their belief that the fair value of Bitcoin is still zero, citing concerns about its transaction speed, costliness, environmental impact from mining, and history of price manipulation and fraud.
3. The officials warned that the surging price and market capitalization of Bitcoin could lead to significant social damage when the cryptocurrency market eventually collapses, emphasizing their negative outlook on the future of Bitcoin.