Recently, the European Central Bank, published a paper titled, "The distributional consequences of Bitcoin," where they examine Bitcoin as a global protocol for payment. The ECB paper disregards Bitcoin as a decentralized money and renders Bitcoin as a speculative asset while promoting CBDCs as the better solution. The ECB paper lays groundwork for the taxation and ban of Bitcoin claiming early Bitcoin holders "steal economic value from latecomers," among other insults.
Within the same week, the Minneapolis FED followed the ECB with it's own paper titled "Unique Implementation of Permanent Primary Deficits" suggesting “a legal prohibition of bitcoin or a tax on bitcoin are forms of financial repression that may be useful”. The ECB paper reveals the views and analysis of the central bank's position, while the FED paper looks at making bitcoin illegal or taxing bitcoin with algorithms for implementing continuous deficits. Both the ECB and Minneapolis FED papers are worth skimming through as underpinning both papers are the tenets for a raid on Bitcoin.
Bitcoin experts quickly called attention to the ECB paper and a group immediately set out to write a rebuttal. Within a matter of days, Rudd M.A., Farrington A., New F., Porter D., produced a rebuttal titled, "Challenging Bias in the ECB's Bitcoin Analysis," which revealed the ECB’s paper serves only itself and aims to ensure its continued control over the monetary system.
It was important to swiftly rebut the ECB paper. The rebuttal highlights many fallacies in the ECB paper which presents Bitcoin as a volatile, speculative asset and contends Bitcoin is "purely an investment asset" in opposition to Satoshi's primary aim for Bitcoin, "which positions Bitcoin as an attractive means of payment." The ECB paper dismisses Bitcoin and promotes the adoption of a Central Bank Digital Currency (CBDCs) which will lead to the end of individual freedom.
You can read more about CBDCs in my article "CBCDs & the Death of Freedom".
The ECB paper obscures the true value of Bitcoin — which is a decentralized open system, controlled by no one, open to everyone, with a finite supply which can’t be inflated, and is resistant to censorship.
If you believe in freedom and want to better understand the road before us and how an attack on Bitcoin is really an attack on privacy, property and individual freedom, then educate yourself and read the FED and ECB papers as well as the above mentioned critical rebuttal, "Challenging Bias in the ECB's Bitcoin Analysis."
Our present monetary system is transforming at hyper speed along with numerous generational technological advancements. If we blink too long, we might miss the part (now) where we have a chance to ensure financial and individual freedom continues for our children into the forthcoming digitally connected future.
"Why is it immoral to produce a value and keep it, but moral to give it away? And if it is not moral for you to keep a value, why is it moral for others to accept it? If you are selfless and virtuous when you give it, are they not selfish and vicious when they take it?" — Harry Binswanger
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For more detailed information about this topic, see the papers linked above.
