European Central Bank States ‘Bitcoin isn’t Employed for Legal Transactions’, This On-Chain Data Suggests Otherwise

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Bitcoin (BTC) will quickly attempt “a journey to irrelevance,” and it is mostly employed for illegal purposes, the ecu Central Bank (ECB) claimed. But based on one on-chain expert, the claim doesn’t hold water.

Writing inside a blog publish printed on Wednesday, the ECB stated “bitcoin isn’t employed for legal transactions,” and known as the network “cumbersome, slow and expensive” to create payments on.

“Bitcoin has not been accustomed to any significant extent for legal real-world transactions,” the Eurozone’s central bank authored.

Bitcoin is “not appropriate being an investment”

The ECB added that “speculative bubbles” – that is what it really sees bitcoin as – depend on new money flowing directly into sustain itself. But based on the blog publish, bitcoin isn’t appropriate being an investment since it doesn’t produce a cashflow, pay dividends, or has every other uses outdoors to be a kind of money.

“The market valuation of Bitcoin thus remains based purely on speculation.”

The authors continued to directly challenge the lengthy-term belief in Bitcoin that lots of its proponents have, stating that the relative stability in the cost right now is simply a breather in order to “irrelevance”:

“For bitcoin proponents, the seeming stabilization signals a breather in order to new heights. Much more likely, however, it’s an artificially caused last gasp before the direction to irrelevance – which had been foreseeable before FTX went bust and sent the bitcoin cost to well below USD16,000.”

The publish, that also made an appearance being an opinion piece within the German business newspaper Handelsblatt, was compiled by Ulrich Bindseil and Jürgen Schaaf, both area of the ECB’s Market Infrastructure &amp Payments division.

US dollar more utilized in crime than crypto

Taking to Twitter to refute your blog publish, Joel John, venture lead at crypto investment fund Ledger Prime, stated the proportion of illegal transactions in crypto is a lot smaller sized than using $ $ $ $ for illegal transactions, having a .15% versus a 5% share.

Source: Joel John/via Twitter

Joel added the share of crypto transactions which are considered illegal is shrinking, considering that on-chain transaction volume surged around six occasions in 2022, while illegal transactions increased just by 79%, or under two occasions.

To conclude, Joel noticed that the argument that bitcoin and crypto is related to crime is problematic because when a technology emerges, an growing share of occasions will always be associated with it.

“We no more say ‘internet linked accident’ or ‘mobile application linked suicide’ – as terrible as both occasions are,” he stated, before finally adding:

“Bias is simple, however it does not deliver progress.”

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