Bitrabo Editorial
In a pointed critique, well-known analyst Tuur Demeester has denounced the European Central Bank’s (ECB) recent research as a “true declaration of war” against Bitcoin. The ECB’s report, “The Distributional Consequences of Bitcoin,” written by Ulrich Bindseil and Jürgen Schaaf, has sparked heated reactions from the Bitcoin community.
The ECB claims in its report that Bitcoin’s rising value does not enhance the economy’s productivity. Instead, it suggests that a lasting increase in Bitcoin’s price results in wealth redistribution, where early investors benefit at the expense of those who enter the market later.
The authors argue, “A sustained rise in Bitcoin prices impoverishes both non-holders and latecomers,” pointing out that this effect occurs regardless of individual trading skills or holding strategies.
A Brewing Conflict Over Bitcoin?
Tuur Demeester, a long-time Bitcoin analyst and board member of the Texas Bitcoin Foundation, leads the critique against the ECB’s publication, calling it a “true declaration of war.” Through X, he voiced his concerns over the ECB’s viewpoint. “This new paper represents a true declaration of war: the ECB asserts that early Bitcoin adopters rob value from latecomers. I firmly believe that authorities will leverage this luddite argument to impose strict taxes or bans,” warns Demeester.
He expands on his fears regarding severe regulations that could inhibit Bitcoin’s growth. “Rather than recognizing Bitcoin as a transformative technological advancement similar to oil and the internet, the authors promote the blatantly regressive view that ‘early adopters’ … ‘boost their real wealth and consumption’ … ‘at the expense of [later entrants],’” he adds.
Demeester further critiques the ECB’s intentions and the implications of their findings. “They boldly propose legislation … ‘to prevent Bitcoin prices from rising or to see Bitcoin disappear altogether’ in order to avert ‘societal division.’” He believes the ECB’s actions reflect a broader agenda aimed at undermining decentralized financial systems.
“Throughout my years following the Bitcoin scene, this is by far the most aggressive paper from authorities. The gloves are off. Central bank economists clearly view Bitcoin as an existential threat to be countered by any means necessary,” Demeester cautions.
Demeester articulates concern over the long-term effects of the ECB’s position. “Many of us have anticipated this: Bitcoin becoming a significant political issue in both national and international contexts. And here it is. It means we HODLers must act to ensure that governments acknowledge our fundamental right to own property.”
He portrays this scenario not only as a regulatory challenge but as a fundamental ideological conflict. “This will not simply be a conflict between the wealthy and the impoverished. It will be a historic clash between those who champion individual rights and those who cling to discredited ideologies of collectivism and central planning,” he emphasizes.
Marc van der Chijs, a Dutch global investor, echoes Demeester’s concerns, pointing out a series of increasingly harsh regulatory measures across Europe towards investors. “Europe seems to be waging war on Bitcoin enthusiasts: higher capital gains taxes for BTC in Italy, proposed exit taxes in the Netherlands, no mortgages in the UK for those who earned their real estate money in crypto (from personal experience!), and now the ECB is telling non-investors that Bitcoin investors are making them poorer,” van der Chijs remarks.
He argues against the ECB’s depiction of early adopters, stating their successful investments stem from shrewd decisions and calculated risks, not a wish to undermine others. “That final assertion is astonishing: the early adopters were simply wiser (or had invested more time) and were ready to take more risks. Now they are being demonized for that. It’s alarming that such rhetoric is coming from the ECB; it resembles the discourse of the Chinese Communist Party,” he notes.
Van der Chijs also raises concerns over the evolving regulatory landscape, highlighting that should Bitcoin’s price soar, there may be intensified punitive measures against investors. “The Overton window is shifting rapidly against Bitcoin supporters (and affluent individuals in general). I have heard from several residents in the Netherlands who hold Bitcoin expressing unease about the regulatory changes. If Bitcoin doubles or triples in 2025, I wouldn’t be surprised to see more politicians turning against BTC and attempting to impose heavy taxes. Be prepared!” he advises.
In response to the ECB’s contentious report, Dennis Porter, CEO and co-founder of the Satoshi Act Fund, has revealed plans to create a detailed rebuttal. Initially, Porter stated, “We’re poised to respond to the anti-Bitcoin ECB report with a comprehensive academic rebuttal. A new paper is on the way. If you want to help, let me know or tag anyone you think we should consult.”
Demonstrating prompt action, Porter later confirmed, “My team is already drafting an official response to the ECB paper. We expect to have a draft ready by today or tomorrow at the latest. If you want to participate, please reach out. We aim to act swiftly,” and updated, “The draft for the ECB rebuttal is complete — multiple co-authors are now contributing — we are open to further contributions for the next 24 hours.”
As of the latest update, Bitcoin is trading at $69,005.
