According to CoinDesk, two European Central Bank (ECB) officials have dismissed the notion that the approval of spot bitcoin exchange-traded funds (ETFs) and the subsequent price rally are proof that the cryptocurrency is a good investment. In a blog post, ECB Director General for Market Infrastructure and Payments Ulrich Bindseil and Advisor Jürgen Schaaf argued that while bitcoin's price may rise in the short term, there is no 'fair value' from which serious forecasts can be made.
The officials criticized the U.S. securities watchdog's approval of multiple funds and the billions of dollars that have poured in since, stating that bitcoin remains a poor investment and an inefficient means of payment. They reiterated the ECB's longstanding position that the fair value of bitcoin is still zero and referred to the ETF approval for the cryptocurrency as 'the naked emperor's new clothes'.
Bindseil and Schaaf also highlighted bitcoin's usual drawbacks, such as high volatility, cost, slow transactions, and high energy use in mining. They identified three factors fueling the current rally: ongoing price manipulation in an unregulated market, growing demand for the 'currency of crime', and shortcomings in authorities' judgments and measures. The officials warned that authorities must remain vigilant to protect society when the 'house of cards' eventually collapses.
