European Central Bank economists publish a paper stating that the continuous rise of Bitcoin will exacerbate social poverty and other consequences
ChainCatcher news, according to The Block, a new paper by economists at the European Central Bank titled "The Distributional Consequences of Bitcoin" points out that even in the case of a sustained increase in Bitcoin prices, early adopters will be the only beneficiaries, while latecomers and non-holders will suffer severe consequences, even in the absence of a "bubble burst."The economists argue that Satoshi Nakamoto's original vision of Bitcoin as a global payment system has largely failed, and people's perceptions are shifting towards viewing Bitcoin as a continually appreciating investment asset. Economists Ulrich Bindseil and Jürgen Schaaf believe that Bitcoin "......does not generate any cash flows (like real estate), interest (like bonds), or dividends (like stocks), nor can it be used for production (like commodities). Therefore, "...most established methods for calculating or estimating the fair value of assets fail when applied to Bitcoin."The paper states: "The new Lamborghinis, Rolexes, villas, and stock portfolios of early Bitcoin investors do not stem from an increase in economic production potential; rather, they are funded by the consumption and wealth reduction of those who initially did not hold Bitcoin." "Thus, 'missing out' on Bitcoin is not just about losing the opportunity to accumulate wealth, but it also signifies real poverty compared to a world without Bitcoin. This redistribution of wealth and purchasing power is unlikely to occur without adverse effects on society." These harmful consequences include "......the corresponding poverty of other parts of society, jeopardizing cohesion, stability, and ultimately threatening democracy."
