Economists at the European Central Bank (ECB) have raised alarms about the potential societal impact of Bitcoin’s rising price. They argue that the cryptocurrency has shifted from Satoshi Nakamoto’s vision of a global payment system to an investment asset.

In a recent paper, ECB economists Ulrich Bindseil and Jürgen Schaaf express concerns that Bitcoin’s increasing value primarily benefits early adopters. This trend could leave later investors and those who do not hold Bitcoin facing significant economic challenges.

ECB Calls For Action Against Bitcoin’s Investment Perception

The authors highlight how thought leaders and celebrities have contributed to Bitcoin’s image as an investment with limitless growth potential. Figures like Larry Fink regard Bitcoin primarily as a financial asset, disconnecting it from Nakamoto’s original narrative of a currency for transactions.

However, instead of positioning BTC as a means of payment, these advocates liken it to gold—a finite resource viewed as a long-term investment. This perspective raises questions about society’s motivation to choose Bitcoin as an investment vehicle. Despite its volatility, proponents expect Bitcoin’s value to trend upward over time, while offering little societal utility.

“In absolute terms, early adopters exactly increase their real wealth and consumption at the expense of the real wealth and consumption of those who do not hold Bitcoin or who invest in it only at a later stage,” they

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Author: Oluwapelumi Adejumo