Economists at the European Central Bank (ECB) are expressing concerns about the societal impact of Bitcoin's rising price. They argue that Bitcoin has shifted from its original vision as a global payment system to being seen as an investment asset. The economists suggest that this shift in perception primarily benefits early adopters, leaving later investors and non-holders at a disadvantage. They warn that the increasing value of Bitcoin could lead to wealth redistribution from newer investors to those who entered the market first, potentially exacerbating poverty. To counteract these risks, the economists advocate for strict price controls on Bitcoin and encourage non-holders to oppose the cryptocurrency and support legislation to curb its price increase. However, industry experts criticize the paper, arguing that it may empower governments to impose strict taxes and restrictions on cryptocurrency. They also defend early adopters, stating that they should not be vilified for their foresight and willingness to take risks.



Other News from Today