The European Central Bank (ECB) is not a fan of the Bitcoin network despite the relative legitimacy introduced into the ecosystem through the launch of the spot BTC ETF. In a recent report, ECB executives Ulrich Bindseil and Jürgen Schaaf argued that despite this approval from the United States Securities and Exchange Commission (SEC), the fair value of Bitcoin is still zero.
The Bitcoin ecosystem is used to criticisms of the currency and network from individuals like Peter Schiff, but the high-profile critique from the ECB is poised to change the perception of the asset. The ECB executives argued that though the U.S. SEC is now open to spot Bitcoin ETFs does not give legitimacy to the premier digital currency.
“For disciples, the formal approval confirms that Bitcoin investments are safe and the preceding rally is proof of an unstoppable triumph. We disagree with both claims and reiterate that the fair value of Bitcoin is still zero,” the ECB executives wrote.
They also noted that over the years, Bitcoin has not fulfilled its promise as a decentralized digital currency for value transfer. Ulrich and Jürgen also noted that the perception that Bitcoin is a financial asset whose value will keep rising is false.
Industry shows divergent stance
The clamor within the broader Bitcoin ecosystem took a new twist with the emergence of spot ETFs. With prominent financial institutions like BlackRock and Fidelity Investments now properly featured in the industry, the perception of riskiness is gradually eroding.
The U.S. SEC eventually overcame its phobia for the digital currency regarding susceptibility to price manipulation, a development that underscores the maturity of the asset class. Despite the fact that Bitcoin is volatile, industry experts consider the digital currency a revolutionary masterpiece that is set to change the broader financial ecosystem.
Overall, the coming Bitcoin halving event is poised to shrink the coin’s supply and mark it a scarcer asset compared to traditional counterparts.