European Central Bank has launched an unprecedented critique of Bitcoin in an article on its website. Ulrich Bindseil and Jürgen Schaff, both of the ECB Market Infrastructure and Payments Division, highlighted the failure of Bitcoin (BTC) to replace or improve the monetary system.
According to their blog ‘Bitcoin’s Last Stand’ published on Wednesday, Bitcoin has never been used for significant real-world transactions.
In their article, they claim Bitcoin’s value depends on ongoing support from new investors. They wrote: “Big Bitcoin investors have the strongest incentives to keep the euphoria going.” According to the pair, Bitcoin’s conceptual design and technological shortcomings make it unsuitable for payments. They also claimed that because Bitcoin does not generate cash flows or dividends, it is also a poor investment.
The two cautioned against interpreting increasing regulation as approval. Saying the rapidly…
