In a harsh criticism of the European Central Bank’s latest research, prominent analyst Tor Demeester described the ECB’s new publication as a “real declaration of war” against Bitcoin. The ECB paper, titled “The Distributional Consequences of Bitcoin,” written by Ulrich Bindseil and Jürgen Schaaf, sparked an intense response from the Bitcoin community.
The ECB paper challenges the founding 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 Bitcoin leads to redistribution effects, whereby the accumulation of consumption and wealth of early holders is likely to impoverish non-holders and latecomers.
“If the price of Bitcoin rises forever, the existence of Bitcoin impoverishes both non-holders and laggards,” the authors assert, stressing that this outcome is inherent even without poor trade timing or holding strategies.
Looming war against Bitcoin?
Tor Demeester, a long-time Bitcoin analyst and board member of the Texas Bitcoin Foundation, has been at the forefront of this backlash, calling the ECB’s publication a “real declaration of war” against Bitcoin. Via X, it is expresses His deep concerns about the position of the European Central Bank. “This new paper is a veritable 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 bizarre argument to enact harsh taxes or bans.
He further outlines his concerns, stressing the possibility of strict regulatory measures aimed at stifling Bitcoin’s growth and adoption. “Instead of praising Bitcoin as a paradigm shift in technology along the lines of oil and the Internet, the authors make a stark argument that ‘early adopters’… ‘increase their real wealth and consumption’… ‘at the expense of (latecomers)’,” he adds.
Demeester did not back down from his criticism of the European Central Bank’s motives and the consequences of its findings. “Then they go on to brazenly call for legislation…to prevent Bitcoin prices from rising or seeing Bitcoin disappear altogether” in order to prevent “the division of society.” He condemns the European Central Bank for what it sees as an aggressive and baseless approach to regulating Bitcoin, arguing that such actions indicate a broader agenda to undermine decentralized financial systems.
“In all the years I’ve been monitoring the Bitcoin space, this is the most aggressive paper the authorities have issued. The gloves are off. Clearly, these central bank economists now see Bitcoin as an existential threat, which must be attacked by any means possible,” warns Demeester.
Expanding on his concerns, Demeester warned of the potential long-term consequences of the ECB’s stance. “Many of us have warned this was coming: Bitcoin as a major political fault line in both national and international elections. Well, here it is. This means that we HODL residents must take action to ensure governments respect our fundamental right to own property.
He frames the situation not only as an organizational challenge, but as a fundamental conflict between ideologies. “No, this will not be a war between the haves and the have-nots. Rather, this will be a historic clash between those who defend the natural rights of the individual, and those who cling to collectivist ideologies and failed central planning.
Mark van der Chiijs, Dutch global investor. reverberation Demeester’s concerns highlight a series of regulatory measures across Europe that have become increasingly hostile towards investors. “Europe appears to be preparing for a war on Bitcoin users: higher gains on Bitcoin in Italy, a proposed exit tax in the Netherlands, and no mortgage in the UK if you have earned money for your properties in crypto (personal experience!) Now the central bank tells European people who do not use coins believe that Bitcoin users are keeping them poor,” Van der Chase said.
He criticizes the ECB’s characterization of early adopters, claiming that their success was the result of strategic investment and risk-taking rather than any nefarious intention to undermine others. “The latter is really unbelievable: the early adopters were simply smarter (or had spent more time at it) and were willing to take more risks. And now they are being vilified for it. “It is very dangerous that these are words coming from a central bank,” he adds. “European, it looks more like a communist Chinese central bank to me.”
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 quickly turning against Bitcoin users (and against wealthy people in general). I’ve heard from a number of people in the Netherlands who own Bitcoin that they are a little concerned about the changing regulations. If Bitcoin doubles or triples in 2025, I wouldn’t be surprised to see More politicians are turning against Bitcoin and trying to impose excessive taxes on it. Be prepared!
In response to the ECB’s controversial circular, Dennis Porter, CEO and co-founder of the Satoshi Act Fund, said: Announce Plan to formulate a comprehensive rebuttal. First, Porter said: “The ECB’s anti-Bitcoin paper will soon be blasted with a full academic rebuttal. New paper incoming. If you’re interested in contributing, let me know. Or tag people you think we should chat with.”
In a show of quick action, Porter later confirmed, “My team has started drafting the formal response to the ECB paper. We will finish the draft today or tomorrow at the latest. If you would like to contribute, please get in touch.” We plan to move very quickly “, and further updated, “The ECB rebuttal draft is complete – several co-authors have now begun to contribute – open call for contributors valid for 24 hours.”
At press time, Bitcoin was trading at $69,005.
Featured image created with DALL.E, a chart from TradingView.com