Crypto

Bitcoin (BTC): Will Promotion Hurt Banks?

As the markets are clearly crashing, the European Central Bank is providing an update on the bitcoin (BTC) situation. Although investors and major market players remain hopeful, not everyone sees things the same way. Between excessive energy consumption, pollution and ephemerality, the European Bank has no shortage of arguments.

Bitcoin (BTC) poses a risk to banks

In the past few years, blockchain technology has attracted many investors, and their number is steadily growing. However, while many people see it as an opportunity for profit and financial independence, the ECB remains convinced of its utopian nature. In a blog post, the latter mentions what she considers to be the last stronghold of Bitcoin (BTC).

Indeed, there is no doubt that crypto assets are gaining more and more supporters. But for the European Central Bank, the latter do not offer any guarantees. Moreover, Bitcoin (BTC), which is the first cryptocurrency and the largest by market cap, is rarely used for legal transactions.

In addition, unlike real estate and stocks, the latter do not generate cash flows or dividends. Thus, it would be inappropriate to consider it as the currency of the future, since it has no place in the real world. However, the Central Bank is firmly convinced that today it is notorious because of large investors.

The latter invest large amounts, promote it and excite people to euphoria. Given the negative effects of bitcoin, the European Central Bank says regulators should not approve of it. Not only is it unsuitable as a form of investment or payment system, but it is also based on speculation. Although the decision is rather harsh, the fact remains that some cases are proven.

The collapse of the Luna and FTX ecosystem this year is a prime example of the instability of cryptocurrencies and bitcoin (BTC). However, despite fears and uncertainty, some countries such as El Salvador and the Central African Republic are proving that BTC is more than a virtual asset, and the current price collapse can bring many surprises.

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Eddie Senga avatar
Eddie Senga

The world is changing and adaptation is the best weapon to survive in this changing universe. As a manager of the crypto community at the base, I am interested in everything that is directly or indirectly related to the blockchain and its derivatives. To share my experience and talk about a field that interests me, there is nothing better than writing informative and laid-back articles at the same time.

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