European Central Bank Economists Think Bitcoin Has Deviated From the Original Vision of Its Founder, Satoshi Nakamoto, as a Global Payment System

European Central Bank economists think Bitcoin has deviated from the original vision of its founder, Satoshi Nakamoto, as a global payment system.

European Central Bank economists believe Bitcoin has strayed from its original goal, as envisioned by its founder Satoshi Nakamoto, to serve as a global payment system. In a recent paper, the economists argue that the pioneer cryptocurrency has instead become a vehicle for speculation, primarily benefiting early adopters.

The economists highlight Nakamoto's intention for Bitcoin to become a global peer-to-peer payment system. However, they contend that the system has failed in this regard, leading to a repositioning of the flagship crypto as an investment asset used mainly for speculation.

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The economists further argue that Bitcoin's continuously rising price, while beneficial to early adopters, has a negative impact on the rest of society. According to the paper, they believe that Bitcoin's trajectory will impoverish society and threaten cohesion, stability, and democracy.

The economists compare Bitcoin to other mainstream assets, highlighting the differences and limitations of the flagship crypto. They note that, unlike real estate, Bitcoin does not generate any cash flow, and compared to bonds, it does not pay any interest. Furthermore, when compared to stocks, they highlight that it cannot be used productively like commodities, nor does it pay any interest.

From the economists' perspective, when applying established methods to calculate or estimate the fair value of an asset to Bitcoin, most of them fail. In their opinion, Bitcoin does not constitute a traditional asset. Instead, they view it as a product that celebrities and thought leaders are promoting as an investment asset with the potential to increase perpetually.

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The economists point to celebrities such as athlete Tom Brady, actors Gwenyth Paltrow and Ashton Kutcher, and blockchain industry thought leaders like BlackRock's Larry Fink and Galaxy Digital's Mike Novogratz. They consider these individuals, among others, to be at the forefront of promoting Bitcoin's potential as an investment instrument.

Bitcoin reached an all-time high of $68,362 at the time of writing, with many analysts predicting a newer high soon for the cryptocurrency. The impression of perpetual growth, which the economists highlight, remains a dominant idea among Bitcoin users, even though many may not agree with the negative implications suggested by the economists.

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