ECB warns: 'Bitcoin value is zero’

Don’t hate me, I’m just sharing their bullshit lol

Researchers at the European Central Bank (ECB) are extremely negative about bitcoin. According to them, the cryptocurrency has no value.

Cryptocurrencies in general, and bitcoin as the main crypto in particular, have been the subject of major disagreements for years.

The central bank of Europe, the ECB, has been skeptical for some time. More than a decade ago, the ECB warned of risks that would be associated with the use of cryptos such as bitcoin.

Even now, ECB economists warn of optimism about bitcoins. Earlier this year, the US stock market watchdog SEC approved the use of ETFs, a type of investment fund, for bitcoins. That could lead consumers to think it is safe to put money into bitcoins, the ECB fears.

Bank economists explain those fears in an online article. The SEC's approval may also cause investors — 'disciples of bitcoin' — to think the past price rise is evidence of an unstoppable triumph, the ECB says.

'No means of payment or investment'

Apart from the darknet, bitcoins are hardly used to pay with, the ECB said.

The central bank also does not find bitcoins suitable as an investment. They do not generate income such as interest or dividend, and they cannot be used to produce anything (such as commodities).

Also, unlike gold jewelry, you can't carry bitcoins, for example, and there is no value to stick on them because, as with art, they are beautiful to look at, according to the ECB.

Consumers who are not so well-saved financially can nevertheless be attracted to bitcoins because they are afraid of missing the boat, which could cost them money, the central bank fears. In their eyes, the total value of bitcoins of 1000 billion dollars (about 920 billion euros) reflects the damage that would arise if 'the house of cards collapses'.

'Investment for 15 years'

Teunis Brosens, crypto expert at ING, says he doesn't know what to do with the discussion of whether cryptos like bitcoin are an investment or not. "It's been around for 15 years and practice shows that there are people who put money into it."

Brosens wonders why the ECB goes into it 'with an outstretched leg'. "If you're a bitcoin supporter, you could conclude that if the ECB, now that bitcoin's price is doing so well, it's going so hard, bitcoin may not be so irrelevant."

According to him, it is an out of category in terms of risk, but there are also other investments that are risky. Brosens does not find it so strange in itself that the ECB wants to warn and prevents a hype from arising where private investors can 'burn their buttocks'. But, he also says, 'It's not up to the ECB to warn of investment risk, that's something for the AFM.'