Source: dailyhodl.com
Officials of the European Central Bank (ECB) are not convinced that Bitcoin (BTC) is a valuable financial asset despite the US approval of a spot exchange-traded fund (ETF) for the flagship cryptocurrency.
The ECB is the central bank of European Union (EU) countries that use the euro as their currency.
In a new blog post, ECB director General Ulrich Bindseil and advisor Jürgen Schaaf say that the decision of the U.S. Securities and Exchange Commission (SEC) to greenlight Bitcoin spot ETF applications on January 10th does not change the fact that the crypto asset is not a suitable means of payment or as an investment.
“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.”
Bindseil and Schaaf say that Bitcoin is hardly used for payment, except by criminals who use it for their illicit transactions.
“Bitcoin transactions are still inconvenient, slow, and costly. Outside the darknet, the hidden part of the internet used for criminal activities, it is hardly used for payments at all.”
They say that Bitcoin is neither a good investment and warn that mining the cryptocurrency continues to cause massive environmental pollution.
“It does not generate any cash flow (unlike real estate) or dividends (stocks), cannot be used productively (commodities), and offers no social benefit (gold jewelry) or subjective appreciation based on outstanding abilities (works of art).
The mining of Bitcoin using the proof of work mechanism continues to pollute the environment on the same scale as entire countries, with higher Bitcoin prices implying higher energy consumption as higher costs can be covered by miners.”
Venture capitalist and former Coinbase CTO Balaji Srinivasan responds to the statements by sharing a long-term chart of the BTC/EUR pair on social media platform X.
“The Euro has collapsed against Bitcoin.”
BTC is worth $51,105 at time of writing.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Read More at dailyhodl.com