ECB Publishes Blog Saying Bitcoin Is Heading Towards Irrelevancy
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According to a statement from the European Central Bank (ECB), bitcoin is in decline and is on the verge of becoming “irrelevant.”
The financial organization published a blog post titled “Bitcoin’s Last Stand” that describes how the leading digital currency in the world fell. It’s interesting to note that the bank makes no mention of FTX and its November collapse as the cause of bitcoin’s dismal performance. Instead, it suggests that Bitcoin was already heading in the wrong direction before the company started to fail.
When the blog was first posted, the bank noted that bitcoin had risen beyond $17,000 for the first time in about two weeks. Even though the increase could delight some, the bank disregarded the move, arguing it wouldn’t last.
The fact that bitcoin does not function as a payment mechanism or as a legitimate investment, as stated in the blog, is one of the reasons it is discussed in such a negative light. The currency hasn’t really demonstrated that it functions in any manner, shape, or form.
ECB Blog Says Bitcoin Regulation May Not Happen Yet
Following the FTX failure, there has been a lot of discussion about regulation, and many people are wondering if perhaps a few laws regulating the space will allow bitcoin and its crypto relatives to once again rise to the top. However, the blog makes it clear that this may not happen and that supporters shouldn’t get excited about the idea just yet. The blog read:
“The belief that space must be given to innovation at all costs stubbornly persists. Firstly, these technologies have so far created limited value for society, no matter how great the expectations [are] for the future. Secondly, the use of a promising technology is not a sufficient condition for an added value of a product based on it.”
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