The European Central Bank recently renewed its critical stance against Bitcoin, asserting that the cryptocurrency’s true value is zero.

In a report co-authored by Ulrich Bindseil and Jürgen Schaaf, ECB officials argue that Bitcoin has failed to deliver on its original promise of becoming a global payment system, instead evolving into a speculative investment asset with no underlying economic value.

They emphasize that Bitcoin’s rising price contributes to wealth inequality, benefiting early holders at the expense of the wider population, including those who don’t own Bitcoin or enter the market late​

The ECB’s paper, The Distributional Consequences of Bitcoin, further discusses how the cryptocurrency’s wealth effects are redistributive, meaning that any continued rise in Bitcoin’s price only exacerbates this inequality. The report suggests that Bitcoin’s price increases come with social costs and could impoverish society as a whole, fueling division between holders and non-holders​

This aggressive position has sparked significant debate within the Bitcoin community. Critics, argue that the ECB’s analysis overlooks Bitcoin’s potential, long-term value, and influence on global financial systems. Nevertheless, the ECB continues to warn of legislation that could impact Bitcoin’s price, and some believe that European authorities may actively pursue measures to limit its growth​.

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