{"id":1430,"date":"2024-10-21T06:31:50","date_gmt":"2024-10-21T06:31:50","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=1430"},"modified":"2024-10-21T06:31:50","modified_gmt":"2024-10-21T06:31:50","slug":"ecb-paper-is-a-declaration-of-war-against-bitcoin-warns-expert","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=1430","title":{"rendered":"ECB Paper Is A \u2018Declaration Of War\u2019 Against Bitcoin, Warns Expert"},"content":{"rendered":"
\n

In a stark critique of the European Central Bank\u2019s latest research, prominent analyst Tuur Demeester has labeled the ECB\u2019s new publication as a \u201ctrue declaration of war\u201d against Bitcoin. The ECB\u2019s paper, titled \u201cThe Distributional Consequences of Bitcoin,\u201d authored by Ulrich Bindseil and J\u00fcrgen Schaaf, has ignited a fervent response from the BTC community.<\/p>\n

The ECB\u2019s paper challenges the foundational premise of Bitcoin by arguing that its appreciation does not contribute to the productive capacity of the economy. Instead, the paper posits that a sustained increase in BTC\u2019s value leads to redistributive effects, where the consumption and wealth accumulation of early holders potentially impoverish non-holders and latecomers.<\/p>\n

The authors assert, \u201cIf the price of Bitcoin rises for good, the existence of Bitcoin impoverishes both non-holders and latecomers,\u201d emphasizing that this outcome is inherent even without poor trading timing or holding strategies.<\/p>\n

A Looming War Against Bitcoin?<\/h2>\n

Tuur Demeester, a long-time BTC analyst and board member at the Texas Bitcoin Foundation, has been at the forefront of this backlash, characterizing the ECB\u2019s publication as a \u201ctrue declaration of war\u201d against Bitcoin. Via X, he expresses<\/a> his deep concerns regarding the ECB\u2019s stance. \u201cThis new paper is a true declaration of war: the ECB claims that early Bitcoin adopters steal economic value from latecomers. I strongly believe authorities will use this luddite argument to enact harsh taxes or bans,\u201d Demeester states.<\/p>\n

He further elaborates on his apprehensions, emphasizing the potential for stringent regulatory measures aimed at stifling BTC\u2019s growth and adoption. \u201cRather than praising Bitcoin as a tech paradigm shift \u00e0 la petroleum and the internet, the authors introduce the blatantly luddite argument that \u2018early adopters\u2019 \u2026 \u2018increase their real wealth and consumption\u2019 \u2026 \u2018at the expense of [latecomers]\u2019,\u201d he adds.<\/p>\n

Demeester did not hold back in his critique of the ECB\u2019s motivations<\/a> and the implications of their findings. \u201cThen they go on to brazenly advocate for legislation \u2026 \u2018to prevent Bitcoin prices from rising or to see Bitcoin disappear altogether\u2019 in order to prevent \u2018the division of society\u2019.\u201d He condemns the ECB for what he sees as an aggressive and unfounded approach to regulating BTC, arguing that such measures are indicative of a broader agenda to undermine decentralized financial systems.<\/p>\n

\u201cIn all the years I\u2019ve been monitoring the Bitcoin space, this is by far the most aggressive paper to come from authorities. The gloves are off. It\u2019s clear that these central bank economists now see Bitcoin as an existential threat, to be attacked with any means possible,\u201d Demeester warns.<\/p>\n

Expanding on his concerns, Demeester warns of the potential long-term consequences of the ECB\u2019s stance. \u201cMany of us have warned that this was coming: Bitcoin as a major political fault line both in national and international elections. Well here it is. It means that us HODLers must take action to insure that governments respect our basic right to hold property.\u201d<\/p>\n

He frames the situation not merely as a regulatory challenge but as a fundamental clash of ideologies. \u201cAnd no, this won\u2019t be a war between haves and have-nots. Rather this will be a historic clash<\/a> between those who stand for the natural rights of the individual, and those who clutch at the failed ideologies of collectivism and central planning.\u201d<\/p>\n

Marc van der Chijs, a Dutch global investor, echoes<\/a> Demeester\u2019s concerns, highlighting a series of regulatory measures across Europe that are increasingly hostile towards investors. \u201cEurope seems to be preparing a war on Bitcoiners: higher cap gains on BTC in Italy, a proposed exit tax in The Netherlands, no mortgage in the UK if you made the money for your real estate in crypto (personal experience!), and now the ECB is telling no-coiners that Bitcoiners are keeping them poor,\u201d van der Chijs remarks.<\/p>\n

He criticizes the ECB\u2019s characterization of early adopters, arguing that their success is a result of strategic investment and risk-taking rather than any nefarious intent to undermine others. \u201cThat last one is truly unbelievable: the early adopters were simply smarter (or spent more time on it) and willing to take more risks. Now they are getting vilified for that. Very dangerous that these are words from the ECB, it sounds more like the communist Chinese Central Bank to me,\u201d he adds.<\/p>\n

Van der Chijs is also concerned over the shifting regulatory landscape, noting that if BTC\u2019s price continues to rise significantly, there could be an intensification of punitive measures against investors. \u201cThe Overton window<\/a> is quickly shifting against Bitcoiners (and against wealthy people in general). I have heard from a number of people in The Netherlands who hold Bitcoin that they are getting a bit worried about the changing regulations. If Bitcoin should double or triple in 2025 I would not be surprised to see more politicians turning against BTC and trying to tax it excessively. Be prepared!\u201d he warns.<\/p>\n

In response to the ECB\u2019s contentious publication, Dennis Porter, CEO and co-founder of Satoshi Act Fund, has announced<\/a> plans to formulate a comprehensive rebuttal. Initially, Porter stated, \u201cAnti-Bitcoin ECB paper to be slammed shortly by a full academic rebuttal. New paper inbound. If you\u2019re interested in contributing, let me know. Or tag those you think we should be chatting with.\u201d<\/p>\n

Demonstrating swift action, Porter later confirmed, \u201cMy team has begun crafting the official response to the ECB paper. We will have a draft done by today or tomorrow at the latest. If you want to contribute, please reach out. We plan to move very quickly,\u201d and further updated, \u201cECB rebuttal draft complete \u2014 multiple co-authors have now begun contributing \u2014 open call for contributors in place for 24 hours.\u201d<\/p>\n

At press time, BTC traded at $69,005.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

In a stark critique of the European Central Bank\u2019s latest research, prominent analyst Tuur Demeester has labeled the ECB\u2019s new publication as a \u201ctrue declaration of war\u201d against Bitcoin. The ECB\u2019s paper, titled \u201cThe Distributional Consequences of Bitcoin,\u201d authored by Ulrich Bindseil and J\u00fcrgen Schaaf, has ignited a fervent response from the BTC community. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-1430","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/1430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1430"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/1430\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}