Bitcoin Transition from Payment System to Speculative Asset Raises Concerns
The initial goal of Bitcoin—becoming a distributed worldwide payment system—has mainly failed. For regular transactions, Bitcoin is useless because of its poor transaction rates, high cost, and limited usage as a payment method.
The European Central Bank (ECB) has raised concerns over Bitcoin's soaring value, highlighting its implications for wealth distribution and broader society.
In a recent working paper, ECB economists argue that Bitcoin's rapid price increase is primarily benefiting early adopters, leading to a transfer of wealth that can be harmful to new investors and non-holders.
Unlike conventional assets that contribute to economic productivity, Bitcoin is viewed as a zero-sum game, with its price appreciation not adding to society's overall wealth. This redistribution of wealth, as the ECB economists warn, could have severe social implications, including financial hardship for the majority who do not own Bitcoin.
The ECB also suggests that this widening disparity could pose a threat to society's stability and potentially even democracy.
Shift from Payment System to Speculative Asset Raises Concerns
The ECB economists emphasize in their paper that Bitcoin's initial aim — becoming a distributed global payment system — has largely failed. Due to its slow transaction rates, high costs, and limited use as a payment method, Bitcoin is impractical for everyday transactions.
Instead, it has transformed into a speculative asset, where early investors' gains are realized through the losses or foregone opportunities of later participants. This has raised concerns about civil unrest, as those who missed out on Bitcoin's price surge experience financial difficulties relative to early investors.
Moreover, the paper criticizes how celebrities and influencers portray Bitcoin as an irresistible investment, a portrayal that distorts its nature and fuels speculative bubbles detached from economic fundamentals.
According to the ECB, the飆漲 of Bitcoin benefits a small group of people while depriving the majority of society. It concludes that latecomers and non-holders may be justified in supporting legislation that restricts Bitcoin's further spread or even bans it outright.
This warning comes at a time when governments around the world are increasingly considering the implications of cryptocurrencies. Critics of the ECB's stance argue that the central bank overlooks Bitcoin's potential value as a form of digital gold.
However, the ECB maintains that the implications of Bitcoin for the distribution of wealth cannot be ignored and should be a central focus in upcoming policy discussions.
Meanwhile, CNF previously reported that the ECB is set to introduce offline payments for the digital euro, allocating €1.3 billion to contractors that are qualified to create this capability for the digital currency. The bank has confirmed that providers specializing in risk management, information security, and user applications will be tasked with carrying out these functions.
The above is the detailed content of Bitcoin Transition from Payment System to Speculative Asset Raises Concerns. For more information, please follow other related articles on the PHP Chinese website!

Top 10 free-to-view market software websites are recommended: 1. Binance, 2. OkX, 3. Sesame Open Door (KuCoin), 4. CoinMarketCap, 5. CoinGecko, 6. TradingView, 7. Investing.com, 8. Yahoo Finance, 9. Glassnode Studio, 10. LunarCrush, these websites provide real-time data, technical analysis tools and market information to help you make informed investment decisions.

To safely access the Binance official platform and download the APP, you can use the following steps: 1) Use a trusted search engine to search for "Binance" and check the domain name; 2) View the official social media to obtain the URL; 3) Consult the official customer service to confirm the URL; 4) Use a trusted navigation website. The steps to download the APP include: 1) Visit Binance official website; 2) Find the APP download portal; 3) Select the download method (scan the QR code, download the app store, and directly download the APK file).

Through the following steps, you can safely access the Ouyi official platform and download the APP: 1. Use a trusted search engine to search for "Ouyi" or "OKX" to check the domain name; 2. Check the official social media account to obtain the URL; 3. Consult the official customer service to confirm the URL; 4. Use a trusted navigation website. When downloading the APP, visit the official website, find the download portal, choose how to scan the QR code, app store, or directly download the APK file, and pay attention to checking developer information, viewing user reviews, installing security software, beware of phishing websites and APPs from unknown sources, and protecting personal information.

To safely download the Binance APP, you need to go through the official channels: 1. Visit the Binance official website, 2. Find and click the APP download portal, 3. Choose to scan the QR code, app store, or directly download the APK file to download to ensure that the link and developer information are authentic, and enable two-factor verification to protect the security of the account.

The methods to safely download the OKX APP include: 1. Use a trusted search engine to search and check the domain name; 2. Check the official social media account and identify the certification logo; 3. Consult the official customer service to confirm the authenticity of the link; 4. Use a trusted navigation website to obtain a verified download link. Through these steps, you can safely download the Ouyi APP and start your cryptocurrency trading journey.

The steps to register an Ouyi account are as follows: 1. Prepare a valid email or mobile phone number and stabilize the network. 2. Visit Ouyi’s official website. 3. Enter the registration page. 4. Select email or mobile phone number to register and fill in the information. 5. Obtain and fill in the verification code. 6. Agree to the user agreement. 7. Complete registration and log in, carry out KYC and set up security measures.

The steps to register a Binance account include: 1. Prepare a valid email or mobile phone number and a stable network; 2. Visit Binance official website; 3. Enter the registration page; 4. Select the registration method; 5. Fill in the registration information; 6. Agree to the user agreement; 7. Complete verification; 8. Obtain and fill in the verification code; 9. Complete registration.

Registering a Sesame Door Account requires 7 steps: 1. Prepare a valid email or mobile phone number and a stable network; 2. Visit the official website; 3. Enter the registration page; 4. Select and fill in the registration method; 5. Obtain and fill in the verification code; 6. Agree to the user agreement; 7. Complete registration and log in, it is recommended to carry out KYC and set security measures.

Hot AI Tools

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Undress AI Tool
Undress images for free

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Dreamweaver Mac version
Visual web development tools

VSCode Windows 64-bit Download
A free and powerful IDE editor launched by Microsoft

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Safe Exam Browser
Safe Exam Browser is a secure browser environment for taking online exams securely. This software turns any computer into a secure workstation. It controls access to any utility and prevents students from using unauthorized resources.

Dreamweaver CS6
Visual web development tools
