In a harsh criticism of the European Central Bank's latest research, prominent analyst Tuur Demeester has called the ECB's new publication a “veritable declaration of war” against bitcoin. The ECB article, titled “The Distributional Consequences of bitcoin,” written by Ulrich Bindseil and Jürgen Schaaf, has sparked a fervent response from the btc community.
The ECB document questions the fundamental premise of bitcoin by arguing that its appreciation does not contribute to the productive capacity of the economy. Instead, the paper posits that a sustained increase in the value of btc leads to redistributive effects, where the consumption and wealth accumulation of early holders potentially impoverishes non-holders and newcomers.
The authors state: “If the price of bitcoin rises definitively, the existence of bitcoin impoverishes both non-holders and newcomers,” and emphasize that this result is inherent even without bad trading timing or holding strategies.
An imminent war against bitcoin?
Tuur Demeester, a long-time btc analyst and Texas bitcoin Foundation board member, has been at the forefront of this backlash, characterizing the ECB's release as a “veritable declaration of war” against bitcoin. Through x, he x.com/TuurDemeester/status/1847512241173582058″ target=”_blank” rel=”noopener nofollow”>express his deep concern about the ECB's position. “This new document is a true declaration of war: the ECB claims that early adopters of bitcoin are stealing economic value from latecomers. I firmly believe that the authorities will use this Luddite argument to enact harsh taxes or bans,” says Demeester.
He goes on to explain his fears, emphasizing the potential for strict regulatory measures aimed at stifling btc growth and adoption. “Instead of praising bitcoin as a technological paradigm shift a la oil and the Internet, the authors introduce the blatantly Luddite argument that 'early adopters'… 'increase their real wealth and consumption'… 'a expense of (the new arrivals).'” duck.
Demeester did not limit himself to criticizing the ECB's motivations and the implications of its conclusions. “They then go on to shamelessly advocate for legislation… 'to prevent bitcoin prices from rising or see bitcoin disappear entirely' in order to prevent 'the division of society.'” It condemns the ECB for what it sees as an aggressive and unfounded approach to regulating btc, arguing that such measures are indicative of a broader agenda to undermine decentralized financial systems.
“In all the years I have been monitoring the bitcoin space, this is by far the most aggressive document that authorities have issued. The gloves were removed. It is clear that these central bank economists now see bitcoin as an existential threat, which must be attacked with any means possible,” warns Demeester.
Expanding on his concerns, Demeester warns of the possible long-term consequences of the ECB's stance. “Many of us have warned that this was coming: bitcoin as a major political failure in both national and international elections. Well here it is. It means that we, HODLers, must take action to ensure that governments respect our basic right to own property.”
He frames the situation not simply as a regulatory challenge but as a fundamental clash of ideologies. “And no, this will not be a war between the haves and the have-nots. Rather, it will be a historic clash between those who defend the natural rights of the individual and those who cling to the failed ideologies of collectivism and central planning.”
Marc van der Chijs, a Dutch global investor, x.com/marcvanderchijs/status/1847630643766972887″ target=”_blank” rel=”noopener nofollow”>echoes Demeester's concerns, highlighting a series of regulatory measures across Europe that are increasingly hostile towards investors. “Europe seems to be preparing a war against Bitcoiners: higher btc capitalization gains in Italy, a proposed exit tax in the Netherlands, no mortgage in the UK if you earned the money for your real estate in cryptocurrencies (personal experience !), and now the ECB is telling non-coiners that Bitcoiners keep them poor,” says van der Chijs.
He criticizes the ECB's characterization of early adopters, arguing that their success is the result of strategic investment and risk-taking, rather than any nefarious attempts to undermine others. “The latter is really incredible: the early adopters were simply smarter (or spent more time on it) and willing to take more risks. Now they are being vilified for it. It is very dangerous that these are words from the ECB, they sound more like the communist Chinese Central Bank to me,” he adds.
Van der Chijs is also concerned about the changing regulatory landscape, noting that if the price of btc continues to rise significantly, there could be an intensification of punitive measures against investors. “The Overton window is rapidly shifting against Bitcoiners (and against the rich in general). I have heard from several people in the Netherlands who own bitcoin that they are a little worried about the changes in regulations. If bitcoin doubles or triples in 2025, I wouldn't be surprised to see more politicians turn against btc and try to overtax it. Be ready!” he warns.
In response to the ECB's controversial publication, Dennis Porter, CEO and co-founder of the Satoshi Act Fund, has x.com/Dennis_Porter_/status/1848180831904575853″ target=”_blank” rel=”noopener nofollow”>announced plans to formulate a comprehensive rebuttal. Initially, Porter stated: “The anti-bitcoin ECB document will soon be criticized by a full academic refutation. New incoming paper. If you are interested in contributing, let me know. Or tag those you think we should chat with.”
Demonstrating swift action, Porter later confirmed: “My team has started putting together the official response to the ECB document. We will have a draft ready today or tomorrow at the latest. If you would like to contribute, please contact us. We plan to act very quickly,” and further updated: “The ECB's draft rebuttal is complete; several co-authors have now begun to contribute; open call for taxpayers for 24 hours.”
At the time of publication, btc was trading at $69,005.
Featured image created with DALL.E, chart from TradingView.com
