European Central Bank Claims Early Bitcoin Investors Exploit New Buyers
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
A recent paper published by the European Central Bank (ECB) claims that early Bitcoin investors are profiting at the expense of newer entrants to the market.
The paper argues that Bitcoin’s decentralized and limited supply structure has led to a system where those who bought the cryptocurrency earlier or at lower prices are selling at a profit, thereby exploiting new buyers.
The authors suggest that Bitcoin should either be subjected to strict price controls or banned entirely to prevent what they describe as an “unfair” wealth transfer.
According to the paper, the wealth distribution caused by Bitcoin could lead to social unrest.
“Current non-holders should realize they have compelling reasons to oppose Bitcoin and advocate for legislation against it, aiming to prevent Bitcoin prices from rising or to see Bitcoin disappear altogether.”
The ECB report also raises concerns about Bitcoin’s role in criminal activity, citing previous studies that claim it is often used in illegal transactions.
However, this view is contested by a May 2024 report from the U.S. Treasury Department, which points out that fiat currency remains the most common means for illicit activities, not cryptocurrencies like Bitcoin.
Interestingly, the ECB paper does not explore why Bitcoin’s value has surged since its inception in 2009.
It also overlooks the fact that Bitcoin’s pseudonymous creator, Satoshi Nakamoto, designed the asset both as a decentralized payment system and as a hedge against fiat currency devaluation.
Since Bitcoin’s supply is capped at 21
Read more on cryptonews.com
