ECB Doubts Bitcoin Value Despite US ETF Approval, Highlights Environmental Concerns

European Central Bank (ECB) officials remain skeptical about Bitcoin's value, despite the U.S. approving a Bitcoin spot exchange-traded fund (ETF). The ECB, which serves EU countries using the euro, hasn't changed its view on Bitcoin's worthiness as a payment method or investment. In a recent blog, ECB's Ulrich Bindseil and Jürgen Schaaf argue that the U.S. SEC's approval of a Bitcoin ETF doesn't legitimize Bitcoin as a safe investment or validate its recent price increase. They maintain that Bitcoin's real value is zero, challenging the notion that it's a secure financial asset.

The officials criticize Bitcoin's practicality for payments, noting its use is mostly limited to illegal transactions. They describe Bitcoin transactions as slow, expensive, and rarely used outside of criminal activities on the darknet. Furthermore, they argue Bitcoin is a poor investment choice, lacking the income generation of assets like real estate or stocks, and not offering any social or aesthetic value. They also highlight the environmental impact of Bitcoin mining, comparing its pollution level to entire countries and linking higher Bitcoin prices to increased energy consumption. In response, venture capitalist and former Coinbase CTO Balaji Srinivasanpointed out the Euro's decline against Bitcoin, sharing a chart of the BTC/EUR rate, with Bitcoin valued at $51.150 at the article's writing.