A new study from European Central Bank economists argues that if Bitcoin continues to appreciate, only those who invested early will benefit, while newcomers and those without Bitcoin will face significant drawbacks, even in the absence of a market crash.
According to the report, Bitcoin has deviated from its original purpose as a universal payment method, evolving into a speculative asset. The authors, Ulrich Bindseil and Jürgen Schaaf, point out that
Bitcoin
doesn’t generate income like real estate or stocks, making traditional valuation methods ineffective.
Prominent figures in finance and entertainment have portrayed Bitcoin as a continually rising investment. However, the
paper
suggests that this perception leads to a zero-sum game where profits for early investors come at the expense of those who enter later. For example, the wealth accumulated by initial Bitcoin investors often translates into luxury purchases, without contributing to overall economic growth.
The report further warns that missing out on Bitcoin can result in real financial losses for non-holders, exacerbating wealth inequality and threatening social stability. It also critiques U.S. presidential candidates, particularly former President Trump, for promoting Bitcoin without clarifying its societal benefits.
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Responses from the crypto community have been strong, with some analysts viewing the paper as a direct attack on Bitcoin. The study also discusses how central banks might react to Bitcoin’s rising prices, suggesting that they could raise interest rates to counteract inflationary effects.
