Bitcoin Price Stability 'Last Gasp Before The Road to Irrelevance': ECB
quoting,
Bitcoin’s last stand, from The ECB Blog.
[...] Bitcoin has been marketed as a global decentralised digital currency. However, Bitcoin's conceptual design and technological shortcomings make it questionable as a means of payment: real Bitcoin transactions are cumbersome, slow and expensive. Bitcoin has never been used to any significant extent for legal real-world transactions.
But Bitcoin is also not suitable as an investment. It does not generate cash flow (like real estate) or dividends (like equities), cannot be used productively (like commodities) or provide social benefits (like gold). The market valuation of Bitcoin is therefore based purely on speculation.
And for the final kick in the teeth,
Since Bitcoin appears to be neither suitable as a payment system nor as a form of investment, it should be treated as neither in regulatory terms and thus should not be legitimised. Similarly, the financial industry should be wary of the long-term damage of promoting Bitcoin investments - despite short-term profits they could make (even without their skin in the game). The negative impact on customer relations and the reputational damage to the entire industry could be enormous once Bitcoin investors will have made further losses.
All true, sadly. And does not bode well for European regulations on crypto. However, the sharp increase in Bitcoin derivatives, including wrapped-BTC, shows that Bitcoin can generate financial products, and hence income - and potential losses. But where there is demand, there will be some legal structure that can facilitate it.
How Jacobi AM launched Europe’s first bitcoin ETF
Through working with the GFSC and domiciling in Guernsey, Jacobi AM has been able to label its product an ETF under what is known as a protected cell company (PCC) structure.
In Guernsey, this structure acts as an umbrella fund which enables ETF issuers to create sub-fund equivalents known as “cells”. BCOIN will be one such cell of Jacobi Investment Funds PCC Limited.
Through this structure, BCOIN will be 100% collateralised by bitcoin and will not take part in any lending of the underlying asset.
Most other existing ETFs use Bitcoin derivatives rather than the coin itself. Note also that this is outside the jurisdiction of the ECB, even though it will be traded on Euronext Amsterdam.
The catch? You need a minimum of $100,000 to invest. Rules for me but not for thee.
European Central Bank Says ‘Bitcoin is Rarely Used for Legal Transactions’, This On-Chain Data Suggests Otherwise
A rebuttal to the constant lie that crypto is just used by criminals - and more to the point, money laundering is done by banks using their offshore subsidiaries. Crypto did not invent money laundering.
and the banksters keep their ML activities very quiet, while shouting loudly about any AML measures they can invent - while knowing how to circumvent them.
Lol if BTC is being irrelevant then why would the came out with there new Digital-FIAT-MIX EU-Currency the EUR-CBDC, I guess they indeed have found that in BTC is more value than they all like to found and therefor copied the sytem with some changes which let them play again their games with running it up in amount without brakes, freezing it at the place of maintenance and control it totaly which wasn´t possible with cash Euro´s.
Remember there is a saying "not your key´s, not your money" so who held the keys for the CBDC´s...
BTC has won the race until now and I supose it will be so for maybe ever (95% possibility)
One of the paragraphs I quoted is a good definition of "money", as it does nothing.
I mean even fiat money does not make money - the cash in your pocket does not grow. There have to be constructs, and contracts, where profits are made purely from the finance.
I am actually surprised how slow has been the growth in BTC derivatives, in this I include both off-chain markets such as CME and on-chain wrapped-BTC.
I still have doubts as to a zero-minting coin as the fees would have to be very high to fund the mining hardware. I consider it an experiment.
As for the ECB blog... a provocation.